Accelerated Depreciation (AD)

Accelerated depreciation lets businesses depreciate solar assets at 40% per year (WDV) for income-tax purposes, front-loading tax savings and improving project returns. It applies to commercial and industrial owners, not homes.

With the additional first-year provisions, a profitable company can recover a large share of project cost as tax shield within two financial years. AD is a key reason CAPEX ownership often beats RESCO for tax-paying businesses.

Part of the HUM Solar Glossary — 75+ plain-language definitions for India’s solar ecosystem, maintained as a neutral reference. Browse all terms →