Are solar panels tax-deductible in California? No, solar panels will not be tax-deductible in California However they do qualify with the federal tax credit score and they are exempt through the state profits tax at time of order. No point out revenue tax penalty: California falls into this condition-specific classification, https://www.americanarraysolar.com/what-factors-to-remember-before-installing-solar-system-in-your-home/