Are solar panels tax-deductible in California? No, solar panels aren't tax-deductible in California but they do qualify with the federal tax credit score and they are exempt from your state product sales tax at some time of acquire. No point out profits tax penalty: California falls into this condition-specific category, https://www.americanarraysolar.com/the-best-solar-incentives-and-rebates-for-california-homeowners/