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Rooftop solar array on an industrial building in Sonora, built by PSE
Solar financing

Four ways to finance solar in Mexico, compared

Not every solar project is bought the same way. Here are the 4 most common routes, with their real pros and cons, no marketing.

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Compare the 4 options

Each structure has its best case

Traditional

Direct purchase

You pay for the whole system and own the equipment from day one. Maximum return, maximum tax benefit.

Advantages
  • Best total ROI (no financing cost)
  • 100% accelerated depreciation in the first year (income tax, ISR)
  • Asset on your balance sheet
Trade-offs
  • Larger upfront outlay
  • Capital tied up in the project
Most common for homes

Bank financing

Installment financing through financial partners. Your monthly payment is comparable to the savings you generate on your electricity bill from CFE, Mexico's state-owned electric utility.

Advantages
  • No down payment, or a low one
  • Terms of 24 to 84 months
  • The savings cover the monthly payment
Trade-offs
  • Financing cost of the loan
  • Subject to credit approval
Industrial and commercial

Operating lease

Rent the equipment for a fixed term, with a purchase option at the end. 100% deductible as an operating expense.

Advantages
  • 100% deduction as an expense
  • Does not affect your credit lines
  • Predictable cash flow
Trade-offs
  • You do not own the equipment until the end
  • Typical terms of 36 to 60 months
No upfront cost

PPA (power purchase agreement)

PSE or an investor installs the system, and you pay for the energy it generates at a price below CFE's. Zero upfront investment.

Advantages
  • Zero upfront investment
  • You pay only for the kWh generated
  • Maintenance included in the rate
Trade-offs
  • Long contractual commitment (15 to 25 years)
  • Lower savings than a direct purchase
  • Subject to a site evaluation (minimums apply)
How we decide together

The right financing depends on three things

When we review your case, we look at your available cash flow (how much you can pay up front), your tax position (how much you deduct) and your ownership horizon (how long you plan to operate the site).

The recommendation comes from there. Industrial company with a strong tax position and owned property: direct purchase. Commercial business leasing its premises: operating lease. Residential customer without liquidity: bank financing. Industry with no capital but large consumption and a long horizon: PPA.

  • No-cost analysis of your specific situation
  • Comparison of 2 to 3 viable structures
  • ROI estimate for each structure
  • Quantified tax benefit
  • Direct contact with our financing partners
Tax benefit

Solar qualifies for a 100% deduction in the first fiscal year

Article 34, LISR

Under Article 34 of the Mexican Income Tax Law (LISR), a photovoltaic system is 100% deductible in the fiscal year it goes into operation.

A real cut in income tax

A 100% deduction reduces your taxable income, and with it the income tax (ISR) you pay.

Check with your accountant

Each case depends on your tax regime and taxable income. We provide the documentation your accountant needs to confirm it applies.

Go deeper: solar PPA in Mexico and solar tax depreciation in Mexico.

Send us your CFE bill. We'll tell you what you can save.

A proposal with real numbers in 5 business days, not brochure estimates.

No cost, no obligation.

Frequently asked questions: solar financing

What are the ways to finance a solar system in Mexico?

There are four common routes: direct purchase, bank financing, operating lease and a PPA (power purchase agreement). Each has its own pros and cons, and the right one depends on your cash flow, your tax position and how long you plan to operate the site.

Which structure fits an industrial plant?

An industrial company with a strong tax position and owned property usually fits a direct purchase. A commercial business leasing its premises fits an operating lease. An industrial operation with no capital to deploy, but large consumption and a long horizon, fits a PPA, where you pay only for the energy generated at a price below CFE's.

How long does payback take under each structure?

On average, 3 to 7 years depending on the structure. Direct purchase: 3 to 5 years. Financed: 5 to 7 years. A PPA delivers savings from day one; there is no investment to pay back.

Is a solar system tax deductible in Mexico?

Under Article 34 of the Mexican Income Tax Law (LISR), a photovoltaic system is 100% deductible in the fiscal year it goes into operation. Each case depends on your tax regime and taxable income, so we provide the documentation your accountant needs to confirm it applies.

Next step

Find out which structure fits your company

Share your general situation and your latest CFE bill. We deliver a comparison of viable structures with real numbers in 5 business days.

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