Accelerated depreciation benefit on solar
An indicative view of the tax benefit a business can claim on a solar asset in its first two years.
Your details
Under s.115BAA additional depreciation is not available.
Section 32(1)(iia). Available to manufacturing businesses only.
Under 180 days halves the rate for the first year. Commission before October if you can.
Your estimate
Indicative tax benefit over two yearsEstimated
₹3.7L – ₹5.2L
The cash value of the depreciation you could claim on the asset in its first two years, at your regime rate.
- Asset value
- ₹20L – ₹25L
- Year one depreciation
- ₹8L – ₹10L
- Year one tax saved
- ₹2.5L – ₹3.1L
- Year two tax saved
- ₹1.2L – ₹2.1L
- Benefit as share of asset
- 20%
- Effective cost after benefit
- ₹14.8L – ₹21.3L
What is capitalised as a solar generating asset.
Accelerated depreciation only.
At an effective rate of 31%.
On the written-down value carried forward.
How much of the capital cost the tax benefit returns.
Asset value less the two-year benefit. Before any energy saving.
Indicative only. This is not tax advice.
This is an indicative estimate of a depreciation benefit, not tax advice. The actual benefit depends on your tax regime, your profitability in the year of installation, the date the asset is put to use, and other deductions you claim. Confirm the figure with your chartered accountant before you rely on it.
This is an estimate, not a quote.
This is an estimated range based on average conditions in your area. Your actual numbers depend on site-specific factors we verify before quoting.
Rates last verified 2026-08-06
Get the number we stand behind
Origian Power stands behind the number our engineer gives you after a free site visit — not the number above.
- Your actual tax position, which your accountant holds and we do not
- Whether the business qualifies for additional depreciation at all
- The commissioning date, which decides the year-one rate
What this figure is, and what it is not
Accelerated depreciation is the main reason a commercial solar asset can pay back faster than a residential one despite there being no subsidy. It is also the part of the case most often quoted loosely, so this tool states its own limits rather than leaving them to the small print.
The figure depends on your tax regime, whether the business qualifies for additional depreciation, and when the system is commissioned. All three are things your accountant confirms and a calculator cannot. The commercial ROI calculator folds this into a full payback figure when you want the whole picture.
Questions about this estimate
Is this tax advice?
No. It is an indicative calculation from published depreciation rates and the regime you selected. Your actual benefit depends on your profitability, your other claims and your commissioning date. Your accountant is the only person who can confirm what you can claim.
Why does commissioning before October matter?
Because an asset put to use for fewer than 180 days in the year of installation attracts half the normal rate for that year. Commissioning in the first half of the financial year gets the full rate; commissioning late defers roughly half the year-one benefit into later years.
What is additional depreciation, and can I claim it?
A further allowance under section 32(1)(iia), available to manufacturing businesses. It is not available under the section 115BAA concessional regime, so choosing that regime here disallows it and the calculator says so rather than quietly ignoring the request.
Does the benefit reduce what I pay the installer?
No. It reduces your tax liability, so it arrives through your return rather than through the invoice. The effective cost shown here is the asset value less that benefit, which is the right basis for comparing against a saving but not the cheque you write.
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