Installing solar panels at your business does more than lower your bill from CFE (Mexico's federal electricity utility): it also represents a very significant tax benefit that many business owners in Mexico are unaware of. Used well, it can substantially accelerate the return on your investment.
100% deduction in a single year
Mexico's Income Tax Law allows a 100% deduction of investments in machinery and equipment used to generate energy from renewable sources. In practice, this means your company can deduct the investment in the solar system in a single fiscal year, instead of depreciating it over several years.
What impact does it have on your finances?
- Lower taxable base: by deducting the full investment, you reduce the profit on which you pay ISR (Mexican income tax) in the year of installation.
- Faster payback: the tax savings add to the savings on your CFE bill, shortening the recovery period.
- Compatible with financing: the benefit applies even when the system is purchased on credit.
One important condition
To keep the benefit, the equipment must remain in operation for a minimum of five years. This is an easy requirement to meet, considering that the panels have a useful life of more than 25 years.
Beyond the tax savings
On top of the tax benefits, you get lower operating costs for the coming decades and progress toward your sustainability goals — increasingly valued by customers and investors alike.
This information is general in nature. We recommend reviewing your specific case with your accountant or tax advisor.