Why to choose ekamEnergy
Natural power supplier
More and more, Indian businesses are waking up to the realization that solar is one of the smartest business decisions that can be made to reduce operating expenses.Combining government subsidy and 30% tax rebate in the form of depreciation claim (80% within first year and rest 20% in next 2 years), you will find solar power is not just a green solution, but a sound business decision.There is continued threat of increase in prices of electricity which is significant challenge for Indian.
Businesses. Ekam Energy can help Indian businesses to counter this threat by installing a commercial Solar Power system which can reduce electricity costs immediately and significantly reduce the business risk for times to come. Solar energy is significant aspect of controlling costs and business sustainability program.
Ekam Energy based out of Chandigarh is leading Commercial Solar Power system providers for TATA Power Solar Systems. Tata Power Solar (TPS) is the largest integrated solar solutions provider in India. Only company with 60+ service centers across India to service our products. Tata Power Solar ranked the #1 third-party EPC player, #1 domestic module supplier and #1 rooftop solar player in the industrial and commercial segment, for 2014, by Bridge To India. We will give you detailed information required to make investment decision and emphasising the commercial benefits of installing Solar power system. Ekam Energy work with its clients to save them money on electricity bills with right solar system. Our clients represents wide range of private and government enterprises of all sizes and include : Infosys, Airtel, NTPC, Cisco, Nestle, ABB, IBM, Google, SAP, L&T, Indian Oil, Intel HP Nokia and Siemens.
Businesses are feeling the pinch of ever rising electricity price. Electricity prices are increasing 8% to 10% every year on an average. Rooftop solar power is being increasingly embraced by Commercial and Industrial units as long term energy security and a free source of electricity using large free spaces available on roofs. Large rooftop space is often go unutilised on many industrial or commercial establishments; installing a solar power system is great way to derive additional value from your building.
Businesses can enjoy the following benefits under grid tie rooftop solar policy :
• Section 32 of IT Act provides Accelerated Depreciation of 80 % of the invested capital to professionals companies with tax liability. Investors can thus, set off their tax liability on the taxable income to the tune of 80% in the 1st year, and subsequently 20% in the 2nd year. • Accelerated depreciation can reduce costs during the project’s start up year. Accelerated depreciation is widely used as an incentive to lessen the burden of tax. Accelerated depreciation (AD) allows investors to take advantage of up to 80% of the project cost. • It is availed simply by reducing the tax a commercial organisation would pay. Say, if 80% depreciation is available, then the organisation can save the tax (it would have otherwise paid) on 80% of the value of the system. So if they are paying 30% tax, the accelerated depreciation benefit will be 30% of 80% of the system cost.Example 1 :
Suppose your company was paying Rs 30 as tax on profit of RS 100 earlier, then by installing a solar plant of Rs 100 you can claim depreciation expense of Rs 80 (80%) in the first year itself, thus reducing your profits for tax purpose to Rs 20. Now you end up paying Rs 6 as tax in place of Rs 30. In other words your save Rs 26 on an investment of Rs 100 in Solar PV System. Example 2 :
A Business invest Rs 1 crore in Solar PV system, The calculation of savings are as follows :
Capital Invested in Solar PV system (A) : Rs. 1,00,00,000 (Rs 1 crore) Company can claim 80% Accelerated Depriciation in Ist year (B) : A*80% = Rs 80,00,000 ( Rs 80 lacs)
Tax benefit in the first year of investment (C) : B*30% = Rs 24,00,000 ( Rs 24 lacs)
Actual Cost of Solar PV system to Business : ( A-C) = Rs 76,00,000 (Rs 76 lacs)
• Reducing the cost of project to the extent of 24%. • Reducing the cost of Solar electricity by approx Rs 2 per unit
Conditions to claim AD Benefit
1. One can claim 80% depreciation in the year of commissioning only if the plant is commissioned before 30th September. In case the plant is commissioned afterwards, the Accelerated Depreciation can be claimed upto 40% in that year and balance is claimed in the following year. 2. The only pre condition to claiming Accelerated depreciation is that the business claiming Accelerated depreciation (AD) should have Profits (and hence, the tax liability) in the first place to be able to claim AD benefit.