Guide to Solar Incentives and Tax Benefits in Mexico
If you’re considering solar energy in Baja California Sur, understanding the available solar incentives in Baja can help you save significantly on your investment. Whether you’re a homeowner or a business owner, Mexico offers valuable tax benefits to support clean energy adoption and reduce your upfront and long-term costs.
Why Mexico Supports Solar Energy Adoption
To reduce national dependence on fossil fuels and lower carbon emissions, Mexico encourages renewable energy through favorable policies. These include tax deductions, depreciation allowances, and simplified interconnection processes through CFE for solar systems.
Main Solar Incentives in Baja California Sur
1. ISR Deduction for Solar Installations
Under Article 34, Section XIII of the Mexican Income Tax Law (ISR), businesses and individuals can deduct 100% of their investment in solar energy systems during the fiscal year of installation. This includes:
- Photovoltaic (PV) solar panels
- Inverters and charge controllers
- Battery storage systems
- Mounting hardware and installation costs
This deduction is immediate and applies even for hybrid or off-grid systems.
2. Accelerated Depreciation for Businesses
Businesses can claim accelerated depreciation on solar system investments. This allows companies to reduce their taxable income in the same year of installation, maximizing short-term cash flow while supporting long-term savings.
Eligibility Requirements
To qualify for these incentives, you must meet certain conditions:
- The system must be used for power generation and energy efficiency
- Installation must comply with NOM and CFE technical standards
- Receipts must include CFDI (digital tax invoice)
- System must be operational and verifiable by tax authorities
How to Claim Solar Tax Benefits in Mexico
- Install a qualifying solar system with an authorized provider like Cabo Solar Experts
- Ensure all invoices (facturas) are properly itemized and registered with your RFC (tax ID)
- File the ISR deduction with your tax declaration or via your accountant
- Retain installation receipts and system documents for five years
We work with local accountants and CPAs to help you integrate your solar investment into your annual declaration.
Example: Tax Savings for a Business in Los Cabos
- System Cost: $500,000 MXN
- ISR Deduction: Full $500,000 MXN deducted from taxable income
- Tax Rate: 30%
- Estimated Savings: $150,000 MXN in year one alone
Additional Financial Benefits of Solar
- Lower CFE Bills: Net metering or self-consumption drastically reduces monthly costs
- Protection from DAC tariffs: Stay below the high-rate threshold
- Increased Property Value: Especially for homes and vacation rentals
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Why Work with Cabo Solar Experts?
- 22+ Years of Experience in solar installation and tax-compliant documentation
- Itemized Receipts for maximum ISR compliance
- Partnerships with Local Tax Advisors to simplify your filing
- System Design That Qualifies for both grid-tied and off-grid incentives
Frequently Asked Questions – Solar Tax Benefits in Mexico
Do I need to be a business to qualify for tax deductions?
No. Both individuals and businesses can deduct solar investments under ISR regulations.
Can I claim the full cost of my solar system?
Yes, 100% of the cost, including batteries and labor, is deductible if properly invoiced.
Does net metering affect my tax benefits?
No. Net metering is a CFE billing policy. It does not interfere with your ability to claim tax deductions.
Can I deduct solar on a vacation rental?
Yes, if it is declared as an income-generating property and tied to your RFC for tax purposes.
📞 Claim Your Solar Incentives with Cabo Solar Experts
Ready to invest in solar and claim your full ISR deduction? Contact Cabo Solar Experts today for a compliant system design and a free consultation on your solar savings potential.
- Phone: +52-615-110-3214
- Email: info@cabosolarexperts.com
© 2025 Cabo Solar Experts – Tax-Efficient Solar Solutions for Baja California Sur
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