Accelerated depreciation benefits on Solar Power Plants on commercial meters
Ther Accelerated Depreciation is 40% accelerated depreciation benefits on installing solar power plants on commercial meters. Industrial Solar Power User: The typical recovery period of an investment in a solar power plant for an Industrial Consumer with an average tariff of Rs. 8.50/unit is 3years two months, even without the accelerated depreciation benefit. Commercial Solar Power User: The recovery period of investment made in solar power plant for a commercial consumer with average tariff of Rs. 12.0/unit is less than 3 years, without accelerated depreciation benefit. A solar power system’s value decreases over time due to the wear & tear of parts and reduction in efficiency of solar panels. The accelerated depreciation benefit allows the commercial and industrial users of solar power to depreciate the assets built as Solar Power Plant at a much higher rate than general capital assets. This allows the user to then claim tax benefit on the value depreciated in a given year. The