Commercial Purpose

A commercial solar power plant is a large-scale facility that generates electricity from solar energy. It consists of solar panels that convert sunlight into electricity. The plant is typically located in an area with abundant sunlight and ample space. The generated electricity is fed into the electrical grid, supplying power to commercial and industrial entities.
Under the Income Tax Act, commercial solar power plants may be eligible for accelerated depreciation benefits. Typically, solar power plants are classified as “Renewable Energy Generation Systems” and can claim higher depreciation rates, which allows for faster tax deductions on the capital investment in the plant.