Call support 24/7 +91 99989 31555

Tax & Other Benefits for the Investors in Lobel Solar Power Plant

  • Home
  • Blog
  • Solar
  • Tax & Other Benefits for the Investors in Lobel Solar Power Plant
female-planning-environment-projects (2)

Section 32 of IT act provides Accelerated Depreciation of 40 % + 40 % + 20 % of the invested capital to professionals companies with tax liability Lobel Investors can set off their tax liability on the taxable income to the tune of 40% in the 1st year, 40% 2nd year and subsequently 20% in the 2nd year

Section 80-IA (sub section 4) of income tax Act, 1961 allows 100% tax waiver on the income generated for any single 10 year period during first 15 years of operational life of a power generation project. This is valid for projects commissioned till 31st March 2014

Generation based incentives given by the government – Renewable Energy Certificates (REC) allows investors to gain a yield in the form of incentive currently being traded at average price of Rs 3.5 per unit of electricity generated by the solar power plant


Third Party PPAs with reputed business houses and large industrial groups (which will be organized by Sai Saburi) allows per unit electricity to be sold at approximately Rs 6/KwH

REC + PPAs results in per unit electricity selling rate of approximately Rs 9.5 per unit

Lobel solar power plant (1MW) generation of 16,00,000 units in 1 year, revenue generation in 1 year will be around Rs 150 Lacs

So, Break Even Point (BEP) of Lobel Investor is around 4 years, after which a long & stable income stream is established as solar power plants are deemed FIT & operational for a period of 25 years Solar plants can be commissioned by us in our

Solar Park within a time frame of 3-6 months

Registration with the Ministry of Environment & Forests allows participation in “Certified Emission Reduction” (CER) Credits in the international market (Carbon Credit)

Make a Comment

Your email address will not be published. Required field are marked*

Cart (0 items)