Tax Benefits.
Maximize your returns with tax incentives and financial benefits.
Tax Incentives.
Accelerated Depreciation
Commercial and industrial installations can claim 80% depreciation in the first year
Income Tax Deduction
Interest on loans for solar installations is tax-deductible under home loan benefits
GST Benefits
Solar equipment attracts only 5% GST instead of standard 18-28%
Capital Gains Exemption
Investment in solar can qualify for capital gains tax exemption
Depreciation Benefits.
For a ₹10 lakh commercial solar installation (30% tax bracket)
| Year | Depreciation | Value | Tax Savings |
|---|---|---|---|
| Year 1 | 80% | ₹8,00,000 | ₹2,40,000 |
| Year 2 | 20% | ₹2,00,000 | ₹60,000 |
| Total | 100% | ₹10,00,000 | ₹3,00,000 |
Note: Tax savings calculated at 30% tax rate. Actual savings depend on your tax bracket and business structure.
Reduced GST Rates.
Solar equipment and services enjoy significantly reduced GST rates, making solar more affordable.
- Solar panels: 5% GST (vs 18% standard)
- Inverters: 5% GST
- Mounting structures: 5% GST
- Installation services: 5% GST
- Batteries: 18% GST (if applicable)
GST Savings Example
Savings of ₹13,000 vs 18% GST
Maximize Your Tax Benefits
Consult with our experts to understand all tax benefits applicable to your solar installation.