Solar power plants are cheaper: faster tax depreciation from August could save companies hundreds of thousands annually

Tax depreciation for photovoltaic systems is changing from August. The depreciation period is being significantly shortened from the original twenty years to five to ten years, and it can also be interrupted. The new rules bring the Czech Republic closer to Germany and Austria.

New rules for the tax depreciation of photovoltaic power plants (PV plants) have applied in the Czech Republic since 1 August. They will be more advantageous for companies and sole traders, and can already be used for plants acquired from 1 July last year. The new depreciation method can save companies up to several hundred thousand crowns a year.

Until August, a special tax depreciation regime applied to photovoltaic systems. PV plants were depreciated on a straight-line basis over 240 months, i.e. exactly twenty years. This depreciation method could not be interrupted, depreciation was calculated to whole months, and the obligation to begin depreciation arose in the month following the fulfilment of the conditions for depreciation.