Depreciation On Solar Panels In India

Solar power is being promoted in corporates and private sector by govt of india through tax relief by allowing them to avail higher rate of depreciation more often termed as accelerated depreciation ad benefit under section 32 of income tax act.

Depreciation on solar panels in india.

This in return allows the user to claim tax benefits on the value depreciated in a given year. The normal depreciation rate for any general plant and machinery is 15. The accelerated depreciation benefit allows the commercial and industrial users of solar power in india to depreciate their investment in a solar power plant at a much higher rate than general fixed assets. 40 l windmills and any specially designed devices which run on wind mills installed on or before march 31 2012 m any special devices including electric generators and pumps running on wind energy installed on or before march 31 2012.

It is mandatory for all large housing societies in west bengal having a total contract demand of more than 500 kw to install solar rooftop systems to meet a. Government owned webel was one of the first manufacturers of solar energy panels in the country. K solar photovoltaic modules and panels for water pumping and other applications. To promote the use of solar power in the commercial and industrial sectors the government of india offers accelerated depreciation of fixed assets equated with the solar power plant the current rate of acceleration is 40 that can be claimed in one year.