Solar Installation Depreciation A Power Full Tax Saving

For commercial and industrial (C&I) users, solar is not just an energy-saving asset but also a powerful tax saving tool.

Under the Income Tax Act, solar power equipment is eligible for Accelerated Depreciation.

How it works:

Normal Depreciation: Solar assets are eligible for a 40% depreciation rate under the Written Down Value (WDV) method.

Additional Depreciation: New industrial undertakings or power generation companies can claim an additional 20% depreciation in the first year of commissioning with rising fuel, power shortage/unit’s INSTALL before 31st March and save tax.