Unlike the US or Europe, Mexico doesn’t offer direct subsidies for residential solar panels. But there are important tax and financial benefits that reduce your net investment cost. Here are the main ones.
For businesses (legal entities)
1. 100% immediate deduction (Art. 34 LISR XIII)
Mexico’s Income Tax Law lets businesses deduct 100% of solar equipment investment in a single fiscal year. A business with equivalent profits saves 30% on ISR in the investment year.
Example: business invests $1,000,000 in solar. Immediate deduction = -$300,000 ISR. Real net cost: $700,000.
2. VAT credit
VAT paid on purchase (16%) is credited against VAT charged to customers. Additional cost reduction.
For individuals (residential)
Here’s where Mexico falls short: no direct residential tax deduction. However:
- No tax on generated energy: net metering doesn’t generate ISR.
- Some municipalities offer property tax discounts (CDMX, Mérida).
Conclusion
Mexico’s best “subsidy” for residential is net metering: turns every generated watt into saved pesos. For businesses, 100% deduction is a huge benefit. See how it applies to your case.
