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Accelerated Depreciation on Solar Panels in 2026: A Complete Guide for Businesses
Understand how businesses can potentially benefit from solar depreciation, commercial rooftop solar and lower electricity costs with guidance from Aarambh Energy, a trusted solar panel company in Lucknow.
Why Businesses Should Consider Commercial Solar
For factories, hotels, hospitals, warehouses, offices and commercial buildings, installing a rooftop solar system can provide two major financial advantages: lower electricity expenses and potential tax benefits through applicable depreciation provisions.
Electricity bills are a major operating expense for many businesses. A properly designed commercial solar system can help reduce dependence on grid electricity while generating clean power for the business.
At the same time, eligible businesses that own and use a solar plant for business purposes may be able to claim depreciation under the applicable provisions of the Income-tax law.
What Is Accelerated Depreciation on Solar Panels?
Accelerated depreciation is a tax benefit that can allow an eligible business to claim a comparatively higher depreciation deduction on certain solar power generating systems during the earlier years of asset ownership.
Instead of calculating depreciation only on the original purchase price every year, depreciation under the Written Down Value (WDV) method is calculated on the reducing value of the asset or relevant block of assets.
For eligible solar power generating systems, the applicable rate referred to in the source material is 40% on Written Down Value, subject to the applicable Income-tax Rules.
How Does 40% Solar Depreciation Work?
Consider a solar plant with a capitalized value of ₹50 lakh. For illustration, if the applicable depreciation rate is 40% under the WDV method:
| Year | Opening Value | Depreciation @ 40% | Closing Value |
|---|---|---|---|
| Year 1 | ₹50,00,000 | ₹20,00,000 | ₹30,00,000 |
| Year 2 | ₹30,00,000 | ₹12,00,000 | ₹18,00,000 |
| Year 3 | ₹18,00,000 | ₹7,20,000 | ₹10,80,000 |
The illustration shows why depreciation under the WDV method creates a larger deduction during the initial years and a progressively smaller deduction as the written down value decreases.
Section 32 and Solar Depreciation
Section 32 of the Income-tax Act deals with depreciation on assets used for business or professional purposes. For a business-owned solar power system, the relevant conditions need to be checked before claiming depreciation.
1. Ownership of the Solar Plant
The business generally needs to have the required ownership interest in the solar asset to claim depreciation. This is especially important when comparing CAPEX with OPEX or RESCO solar models.
2. Business Use
The solar plant should be used for business or professional purposes. Examples include solar systems installed for factories, warehouses, hotels, hospitals, offices and other commercial premises.
3. Put to Use / Commissioning
The solar plant must be installed and put to use in accordance with the applicable tax provisions. The commissioning date can affect the amount of depreciation available in the first year.
4. Capitalisation
The solar project should be appropriately capitalised and recorded as a fixed asset in the business books, subject to applicable accounting and tax requirements.
Additional 20% Depreciation: Is 60% Always Available?
No. Businesses should not automatically assume that every solar installation qualifies for a total depreciation rate of 60%.
The additional depreciation provision under Section 32(1)(iia) has specific eligibility conditions. The business, asset and use of the asset must satisfy the applicable requirements.
For example, a manufacturing business installing a solar plant for its operations may have a stronger basis to examine the additional depreciation provision. However, a service business, office or commercial property should not automatically include the additional 20% in its financial projections.
Who Can Potentially Benefit From Solar Depreciation?
🏭 Manufacturing Units
Factories and manufacturing businesses can evaluate rooftop solar for reducing electricity costs and applicable tax benefits.
🏢 Commercial Buildings
Corporate offices and commercial buildings can consider rooftop solar to reduce recurring electricity expenditure.
🏨 Hotels & Hospitals
Large facilities with significant electricity consumption can evaluate commercial solar to improve long-term energy economics.
📦 Warehouses
Warehouses and logistics facilities with suitable rooftop space can consider solar for reducing operational electricity costs.
🏪 Businesses & MSMEs
Eligible businesses can evaluate solar based on electricity usage, roof area, ownership structure and financial requirements.
⚡ Industrial Units
Industrial consumers can explore captive rooftop solar solutions designed around their electricity consumption profile.
Who Generally Cannot Claim Business Depreciation?
- A salaried individual installing residential solar does not generally have a business depreciation claim merely because a solar system is installed at home.
- A business customer using an OPEX or RESCO solar model generally does not claim depreciation on a plant owned by the solar developer.
- The tax treatment can differ where ownership, lease structure or business-use conditions are different.
The 180-Day Rule and Solar Commissioning
The number of days for which an asset is put to use during the financial year can affect the first-year depreciation claim.
Where the applicable rule restricts depreciation because an asset is put to use for less than the prescribed period, the first-year claim can be limited to a specified portion of the normal depreciation.
CAPEX vs OPEX Solar: Who Gets the Depreciation Benefit?
| Solar Model | Plant Ownership | Depreciation Claim |
|---|---|---|
| CAPEX | Business generally owns the plant | Business can evaluate depreciation eligibility |
| OPEX / RESCO | Developer owns the plant | Developer generally claims depreciation |
Ownership is one of the most important factors when calculating the financial benefit of a commercial solar project.
How to Calculate the Potential Tax Saving From Solar?
Once the depreciable cost and applicable depreciation rate are determined, the potential tax saving can be estimated using the business's applicable tax rate.
For example, if an eligible project has a depreciable cost of ₹45 lakh and the applicable depreciation rate is 40%, the illustrative depreciation deduction would be ₹18 lakh.
| Parameter | Illustrative Example |
|---|---|
| Solar Project Cost | ₹45 lakh |
| Illustrative Depreciation Rate | 40% |
| Year 1 Depreciation | ₹18 lakh |
| Illustrative Tax Rate | 25% |
| Illustrative Tax Saving | ₹4.5 lakh |
This is only an illustration. Actual tax savings depend on the business's applicable tax regime, taxable income, depreciation eligibility, GST treatment, asset cost, commissioning date and other applicable provisions.
GST and Solar Depreciation
GST treatment can also affect the depreciable cost of a solar project. Where a GST-registered business is eligible to claim input tax credit, the GST component treated as credit may generally not form part of the depreciable asset cost.
The actual GST treatment depends on the project structure, invoices, nature of supply, EPC contract and applicable GST provisions. Businesses should verify the treatment with their tax professional.
Documents Businesses Should Maintain
- Solar system tax invoice
- Proof of payment
- Commissioning documentation
- Fixed asset register entry
- Capitalisation records
- Net-metering or DISCOM documents, where applicable
- Relevant project and installation documents
Common Mistakes Businesses Should Avoid
- Assuming that every solar project automatically qualifies for 60% depreciation.
- Ignoring the commissioning and 180-day considerations.
- Claiming depreciation on a solar plant that the business does not own.
- Ignoring the effect of GST input tax credit on asset cost.
- Using residential solar subsidy information for commercial projects.
- Calculating tax savings without considering the company's actual tax regime.
Solar Depreciation vs Solar Subsidy
| Feature | Business Solar Depreciation | Residential Solar Subsidy |
|---|---|---|
| Nature | Tax depreciation benefit | Government subsidy scheme |
| Typical Beneficiary | Eligible business asset owner | Eligible residential consumer |
| Purpose | Reduce taxable income through depreciation | Reduce eligible residential solar installation cost |
| Basis | Applicable Income-tax provisions | Applicable government scheme guidelines |
Benefits of Commercial Solar for Businesses
💡 Lower Electricity Bills
Generate electricity from your own rooftop solar system and potentially reduce dependence on grid power.
📊 Better Project Economics
Solar savings combined with applicable tax benefits can improve the overall financial case for an eligible business.
🌱 Cleaner Energy
Solar power can help businesses move towards cleaner and more sustainable electricity generation.
Looking for the Best Solar Panel Company in Lucknow?
Aarambh Energy provides solar consultation and solutions for residential, commercial and industrial customers in Lucknow and nearby areas.
From rooftop solar planning and system selection to installation, monitoring and maintenance, our team can help businesses evaluate a solar solution according to their electricity consumption, available roof space and project requirements.
Frequently Asked Questions
Can a business claim depreciation on a solar plant?
An eligible business that owns and uses a solar plant for business purposes may be able to claim depreciation subject to the applicable Income-tax provisions and conditions.
Is solar depreciation always 40%?
The applicable rate depends on the relevant asset classification and tax rules. The source material for this guide refers to a 40% WDV rate for eligible solar power generating systems. Businesses should verify the rate applicable to their specific project.
Can every company claim an additional 20% depreciation?
No. Additional depreciation has specific eligibility conditions. Businesses should not assume that the total benefit is automatically 60%.
Does OPEX solar give depreciation to the customer?
Generally, depreciation follows ownership of the solar plant. Under a typical OPEX or RESCO structure where the developer owns the plant, the developer generally claims the depreciation.
Does solar reduce business electricity costs?
A properly designed solar system can generate electricity for the business and potentially reduce the amount of electricity purchased from the grid.
Can Aarambh Energy help businesses plan commercial solar?
Yes. Aarambh Energy can help businesses evaluate their solar requirements, system capacity, rooftop suitability and installation requirements.
Make Your Business More Energy Efficient
Explore commercial rooftop solar with Aarambh Energy and understand how solar generation, electricity savings and applicable tax benefits can contribute to your business's long-term energy strategy.
Disclaimer: This article is intended for general informational purposes only and should not be treated as tax, legal or financial advice. Tax depreciation, additional depreciation, GST input tax credit, ownership treatment, commissioning rules and other provisions may vary depending on the business, project structure and applicable law. Businesses should consult their Chartered Accountant or qualified tax professional before relying on any tax calculation or filing.
Aarambh Energy – Solar Solutions in Lucknow
Aarambh Energy is focused on helping homes, businesses and commercial establishments explore reliable solar energy solutions. If you are searching for the best solar panel company in Lucknow, our team can assist with solar consultation, system planning, installation, monitoring and maintenance.
Whether you need a rooftop solar system for your home, commercial solar for your business or an industrial solar solution, Aarambh Energy can help you understand your available options and plan your solar project according to your requirements.
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हर महीने आने वाला भारी बिजली बिल आपकी कमाई का बड़ा हिस्सा खा जाता है। लेकिन अगर वही पैसा Solar में लगाया जाए, तो आने वाले 20–25 साल तक आपको सस्ती और लगभग FREE जैसी बिजली मिल सकती है।
🏠 हर घर के लिए Perfect Solution
चाहे आपका घर छोटा हो या बड़ा, Solar System आपके बिजली खर्च को कम करने में मदद करता है। आज हजारों परिवार Solar अपनाकर बिजली कटौती और महंगे बिलों से राहत पा रहे हैं।
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💡 Solar लगाने के फायदे
✅ कम बिजली बिल
हर महीने बिजली खर्च में बड़ी बचत करें।
✅ Government Subsidy
सरकारी सब्सिडी का लाभ लेकर Installation Cost कम करें।
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20–25 साल तक शानदार Performance।
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Business Collaboration With Aarambh Energy
Partner with Aarambh Energy to expand sustainable energy solutions across India. We welcome dealers, distributors, EPC companies, electrical businesses, contractors, and entrepreneurs who want to grow with the future of solar energy.
Dealer Partnership
Become an authorized Aarambh Energy dealer and deliver trusted solar products and energy solutions in your city or region.
- Premium solar product support
- Brand marketing assistance
- Business growth opportunities
- Technical guidance & training
Business Collaboration
We collaborate with builders, industrial businesses, electrical contractors, EPC partners, and renewable energy professionals for long-term business opportunities.
- Joint project execution
- Commercial solar partnerships
- Installation collaboration
- Long-term renewable growth
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Be part of India’s rapidly growing renewable energy sector.
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We provide guidance, coordination, and strong partnership support.
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Privacy Policy
Welcome to Aarambh Energy. Your privacy is important to us. This Privacy Policy explains how we collect, use, and protect your information when you visit our website www.aarambhenergy.com.
1. Information We Collect
We may collect the following information from users:
- Name
- Email Address
- Mobile Number
- Address and Location Information
- Inquiry and Support Details
- Website Usage Data
2. How We Use Your Information
Your information may be used for:
- Providing solar consultation and support
- Responding to inquiries and service requests
- Improving our website and services
- Sending updates and promotional offers
- Customer support and communication
3. Data Protection
We implement appropriate security measures to protect your personal information from unauthorized access, misuse, or disclosure.
4. Cookies
Our website may use cookies to improve user experience and analyze website traffic. You can disable cookies through your browser settings.
5. Third-Party Services
We may use trusted third-party tools or services such as payment gateways, analytics tools, and customer support platforms to operate our business efficiently.
6. Sharing of Information
Aarambh Energy does not sell, trade, or rent users’ personal information to third parties.
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- Request access to your personal information
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- Opt-out from promotional communications
8. Contact Information
If you have any questions regarding this Privacy Policy, please contact us:
Aarambh Energy
Office No-112,
Ansal API, 1 Shopping Square,
Lucknow, Uttar Pradesh – 226030
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9. Updates to This Policy
We may update this Privacy Policy from time to time. Changes will be posted on this page with updated information.
Last Updated: May 2026
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Aarambh Energy
Complete Solar Maintenance & AMC Services for Long-Term Performance
Book ServiceIntroduction to Solar Maintenance
Solar energy systems are one of the most reliable and sustainable energy solutions available today. However, to maintain their efficiency and longevity, proper care and maintenance are essential. At Aarambh Energy, we specialize in providing professional solar maintenance services that ensure your system continues to perform at its best year after year.
Many people believe that solar panels require little to no maintenance, but the reality is quite different. Environmental factors such as dust, pollution, bird droppings, and weather conditions can significantly affect the performance of solar panels. Without proper maintenance, these factors can reduce energy output and ultimately impact your savings.
Our mission is to help you get the maximum return on your solar investment by ensuring your system operates efficiently at all times. With our advanced maintenance solutions, expert technicians, and customer-first approach, we deliver unmatched reliability and performance.
Whether you have a residential rooftop system or a large commercial installation, Aarambh Energy provides tailored maintenance services designed to meet your specific needs.
Why Solar Maintenance is Important
Solar panels are constantly exposed to environmental conditions that can affect their efficiency. Dust accumulation is one of the most common issues, especially in urban and semi-urban areas. A layer of dust can block sunlight, reducing energy production significantly.
Regular cleaning ensures that panels receive maximum sunlight, improving performance and energy output. In addition to cleaning, routine inspections help identify potential issues such as loose wiring, damaged components, or inverter faults.
Maintenance also plays a critical role in preventing long-term damage. Small issues, if left unattended, can escalate into major problems that require costly repairs or replacements.
Another key benefit of maintenance is safety. Faulty electrical connections or damaged components can pose risks, making professional servicing essential.
In summary, regular solar maintenance ensures efficiency, safety, and long-term reliability, making it an essential part of any solar system.
Our Maintenance Services
Aarambh Energy offers a comprehensive range of maintenance services designed to cover every aspect of your solar system.
Panel Cleaning: We use advanced cleaning techniques to remove dust and debris without damaging the panels.
System Inspection: Our experts conduct detailed inspections of all components, including panels, wiring, and inverters.
Performance Testing: We analyze system performance to ensure optimal energy generation.
Repairs and Troubleshooting: Quick identification and resolution of technical issues.
Preventive Maintenance: Scheduled servicing to avoid unexpected breakdowns.
Our services are designed to provide complete peace of mind while ensuring your system operates at peak efficiency.
Annual Maintenance Contract (AMC)
Our Annual Maintenance Contract (AMC) plans are ideal for customers who want a hassle-free solar maintenance experience. With scheduled visits, priority service, and comprehensive coverage, our AMC plans ensure your system remains in top condition.
AMC includes regular cleaning, inspection, performance monitoring, and repairs. This proactive approach helps prevent major issues and ensures consistent performance.
By choosing an AMC plan, you can enjoy long-term savings and peace of mind knowing your solar system is in expert hands.
We offer flexible AMC packages tailored to residential, commercial, and industrial needs.
Benefits of Regular Maintenance
Regular solar maintenance provides numerous benefits that directly impact your system’s performance and financial returns.
Improved efficiency leads to higher energy output, reducing your electricity bills.
Preventive maintenance minimizes the risk of system failures and costly repairs.
Extended lifespan ensures your solar system continues to deliver value for many years.
Professional servicing enhances safety and reliability.
Consistent performance provides peace of mind and energy independence.
Overall, maintenance is a small investment that delivers significant long-term benefits.
Technology & Expertise
At Aarambh Energy, we use advanced tools and technologies to deliver high-quality maintenance services. Our monitoring systems track real-time performance, allowing us to detect issues instantly.
Our team of trained professionals uses specialized equipment for cleaning and diagnostics, ensuring accurate results without damaging your system.
We stay updated with the latest industry advancements to provide the best solutions to our customers.
Our commitment to quality and innovation sets us apart as a trusted solar maintenance provider.
Why Choose Aarambh Energy
Choosing the right maintenance partner is essential for maximizing the value of your solar investment. Aarambh Energy stands out for its commitment to quality, reliability, and customer satisfaction.
We provide customized maintenance solutions tailored to your needs.
Our experienced team ensures professional and efficient service.
We use high-quality tools and techniques for accurate diagnostics.
Our customer-first approach ensures complete satisfaction.
With Aarambh Energy, you can be confident that your solar system is in safe hands.
Book Maintenance Service
Ready to keep your solar system running at peak performance? Choose your preferred way to contact us below.
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