Commercial & Industrial Tax Saving
Solar Depreciation Calculator
Calculate tax benefits and ROI through accelerated depreciation. For commercial solar in India — 40% WDV depreciation under Section 32 of the Income Tax Act.
Total Tax Savings (5 yrs)
₹2,30,560
at 25% tax slab
Year 1 Tax Saving
₹1,00,000
Effective Project Cost
₹7,69,440
Net of all tax benefits
Yearly Depreciation Schedule
| Year | Opening WDV | Depreciation | Tax Savings | Closing WDV |
|---|---|---|---|---|
| Year 1 | ₹10,00,000 | ₹4,00,000 | ₹1,00,000 | ₹6,00,000 |
| Year 2 | ₹6,00,000 | ₹2,40,000 | ₹60,000 | ₹3,60,000 |
| Year 3 | ₹3,60,000 | ₹1,44,000 | ₹36,000 | ₹2,16,000 |
| Year 4 | ₹2,16,000 | ₹86,400 | ₹21,600 | ₹1,29,600 |
| Year 5 | ₹1,29,600 | ₹51,840 | ₹12,960 | ₹77,760 |
| Total | ₹9,22,240 | ₹2,30,560 | ||
Understanding Solar Depreciation in India
For commercial and industrial (C&I) users, solar is not just an energy-saving asset — it's a powerful tax-saving tool. Under the Income Tax Act, solar power equipment is eligible for Accelerated Depreciation.
- Normal Depreciation: 40% under the Written Down Value (WDV) method (Rule 5, Income Tax Rules).
- Additional Depreciation: New industrial undertakings or power-gen companies claim an extra 20% in Year 1 (Section 32).
- Half-Year Rule: If commissioned after Oct 3 (less than 180 days in the FY), only 50% of Year 1 depreciation can be claimed.
Pro Tip
Commission your project before September 30 to claim the FULL 40% depreciation (plus 20% additional if applicable) in the very first year — dramatically boosting your Year 1 cash flow.
Why C&I customers love solar:
- • 12–24% tax saving on project cost in Year 1 alone
- • Payback period drops to 2.5–3.5 years
- • 25-year ROI typically 4×–5× the investment
- • GST input credit available on capital expense
Want a tailored depreciation report?
SVN Safetech handles the entire installation + paperwork for businesses across Trichy & Tamil Nadu — site survey, design, commissioning before Sept 30, and CA-ready Form 3CD docs.
* Estimate only. Section 32 / Rule 5 of the Income Tax Act, 1961 govern actual depreciation; additional 20% applies only to eligible new manufacturing / power-gen undertakings. Please consult your CA for final filings. Updated for FY 2025-26.