Commercial solar doesn't get PM Surya Ghar subsidy — but it gets something residential solar can't touch: accelerated depreciation. Enter your system cost below and see the first-year deduction and illustrative tax savings.
Solar power-based devices are classified as a Written Down Value (WDV) block of assets at 40% under Appendix I, Part A, Block of Assets 8(ix)(l) of the Income Tax Rules, 1962 (Rule 5, read with Section 32(1)(ii) of the Income Tax Act, 1961). This rate was reduced from 80% by the Finance Act, 2017 (effective AY 2017-18) and has remained unchanged since — it is still the operative rate for FY2026-27.
Important nuance: if the asset is put to use for less than 180 days in the financial year it is purchased, only half the normal rate (20%) can be claimed for that year — the balance carries forward on the reduced WDV in later years.
Verified via multiple 2026 tax/industry sources (Tata Power, India Briefing, Heaven Green Energy, SolarCalculators.in) citing Income Tax Rules Appendix I Part A 8(ix)(l). This is general information, not a substitute for checking the current Finance Act with your CA.
Illustrative only — not tax advice
Enter the total invoice cost of the solar system (panels, inverter, structure, installation).
40% of system cost written off against taxable profit in year one. This is a cash tax shield that reduces the effective net cost in the first year — separate from and additional to ongoing electricity bill savings.
Commercial/industrial DISCOM tariffs run higher per unit than residential slabs, so every solar unit generated offsets a costlier grid unit — faster paper payback than residential, even without any subsidy.
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