Are solar panels tax-deductible in California? No, solar panels are not tax-deductible in California but they do qualify for the federal tax credit history and they are exempt in the state sales tax at some time of buy. Federal solar tax credit history: As Formerly described, this credit rating helps https://www.americanarraysolar.com/what-kind-of-support-you-can-expect-from-a-solar-contractor-pleasanton/