The Ministry of New and Renewable Energy (MNRE) has announced revised depreciation rates for renewable energy devices and systems. This move is part of the government’s efforts to promote clean energy adoption and support businesses investing in sustainable technologies.

Key aspects of this announcement include:

1. Increased depreciation rates for specific renewable energy technologies
2. Separate categories for solar, wind, and hybrid systems
3. Special provisions for energy storage systems associated with renewable projects
4. Alignment with the government’s target of achieving 500 GW of renewable energy capacity by 2030

These new depreciation rates are expected to make investments in renewable energy more attractive for businesses across various sectors. The accelerated depreciation can lead to significant tax benefits in the initial years of investment.

As chartered accountants, we are equipped to help our clients understand these new depreciation norms and how they can be leveraged to optimize tax planning while contributing to sustainability goals. We can assist in assessing the financial implications of renewable energy investments under this new framework.