Taxes

Taxes

 

If you want to activate the assessment of taxes in economic analysis you must enable the check mark Allow taxes. The program allows a general and simplified assessment of taxes since each country adopts different rules. These are the parameters that can be configured:

  • Tax rate for income: In a tax system, the tax rate describes the burden ratio (expressed as a percentage) at which a business or person is taxed. In this way the tax to apply is Taxable income * Tax rate for income.

  • Tax on feed-in tariff: In the event that the energy production of the PV system receives incentives, income that follows may be subject to taxes. Each country may have different rules, so you can specify which part of the PV production is subject to tax by clicking the corresponding check mark.

  • Taxes on electricity: sale/net metering: Allows to enable/disable the taxation of energy sold or the net metering.

  • Depreciation: It is the allocation of the cost of assets to periods in which the assets are used. They can be considered in the economic evaluation by selecting the check mark System depreciation, then you can determine the percentage of the investment that is subject to depreciation. The Annual depreciation parameter sets the percentage of value subject yearly to depreciation. If, for example, the depreciation will be in 20 years then the Annual depreciation will be of 5%.

 

Another way of encouraging the realization of photovoltaic systems is to allow the tax detraction of the cost of the system. In some countries this is possible, if this is the case, you must enable the check mark Enable tax detraction of system cost.

  • Percentage of system cost: Percentage of total system cost that can be detracted from taxes.

  • Detraction period: Number of years on which shall be distributed, in equal parts, the percentage of the cost of the system that can be detracted from taxes.