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Is there a clean energy subsidy in Mexico?

[fa icon="calendar"] Nov 9, 2017 4:07:10 PM / by Habitec


Is there a clean energy subsidy in Mexico.png

Is the energy in Mexico subsidized? The short answer is yes. Although, the electricity prices of commerces and homes on the DAC rate (High Consumption Domestic Rate), tend to be up to 25% higher compared to the prices paid in the United States.

This doesn’t mean everything is ruined, since in recent years this country has encouraged the use of renewable energies, granting different benefits and credits to those users who opt for the use of solar panels.

Mexico: a country that grants benefits to users of clean energy

There are many benefits and credits, besides the very clear economical long term savings, which you could get as long as you choose solar panels as your clean energy option in Mexico.



The escrow for the savings of electric energy was born as an initiative of the Federal Commission of Electricity (CFE by its Spanish acronym) to support the energy savings and the efficient use of electricity.

Through the FIDE (according to its Spanish acronym) you can access to a credit for the 30% of the cost for the equipment installation qualified for energy saving at home, such as wind turbines, geothermal heat pumps and, of course, solar panels.

Tax incentives

The 34th article of the Income Tax Law, indicates that it’s possible to deduct the 100% of taxes from the investment on a panel solar system, even if you’re a foreigner living in the country.

This is a very important benefit, especially if you have a business in Mexico. Besides, in some states such as Yucatan, you can even get discounts on some taxes.


Are you retired and currently living in Mexico?

Maybe you already live in Mexico and you think that, because of the currency, your money allows you to have a comfortable life in this country where the pricing of electricity doesn’t really affect you… until now. Nevertheless, you should know that the Mexican government is working on a law reform to eliminate the government subsidy of electricity.

This could result in a significative increase of monthly spendings, thus a problem that could affect your lifestyle in this country.  

Considering the installation and use of solar panels using government benefits and the subsidy might be the best way to make your money last in Mexico, helping you to obtain the peace that you’ve been seeking after all the hard working years.

If you’d like to know more about the solar panel installation, we invite you to get in touch with one of Habitec advisors.

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Topics: Lifestyle

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