Solar Panels and system depriaction rate by ATO

What is the Depreciation rate for a Solar Electric generating system for ones Residence( the type that sit on your roof)?

A search of the ATO web site indicates they are in the process of doing a review of these Solar electric systems ( ie: system includes Inverter,Solar panels ,stand) but I am unable to locate information on the current rate.
Thanks in advance.
 
What is the Depreciation rate for a Solar Electric generating system for ones Residence( the type that sit on your roof)?

A search of the ATO web site indicates they are in the process of doing a review of these Solar electric systems ( ie: system includes Inverter,Solar panels ,stand) but I am unable to locate information on the current rate.
Thanks in advance.

My accountant advised the system can be deemed to have a life of 11 years. Solar panels have an indicated factory warranty of about 20 years and inverters of about 5 years, however in practice depreciation rates should be higher I think because of obsolescence, etc like any piece of electronic equipment.
 
My accountant advised the system can be deemed to have a life of 11 years. Solar panels have an indicated factory warranty of about 20 years and inverters of about 5 years, however in practice depreciation rates should be higher I think because of obsolescence, etc like any piece of electronic equipment.

Some panels have warranties for 25 and even 30 years.
Inverter warranties also vary , some have 10 years
I am surprised I cant find deperciation rates anywhere on the ATO site for an electric solar system.
Thanks for the info , but an accountants view is just an opnion. Anyway it is a starting point which helps me out .
 
Rang the ATO and waited 30 minutes on the phone ( one of the reasons i posted first rather than ring the ATO) .
The front line couldn't tell me anythhing.
But they have promise to get back to me in 48 hours.
That was 96 hours ago.
 
Not much point calling the ATO at this time of year.

The ATO have a great publication called 'Rental Properties 2009'.

http://www.ato.gov.au/content/downloads/IND00191817n17290609.pdf

It's an a publication they update regularly.

In the back of it, there is a table of Assets with Effective Lives.

They give an Effective Life of 20 years for 'solar-powered generating system assets'.

The main components are the panels and the inverter.

Good panels have warranties of 25 years, so an EL of 20 years seems about right. (Cheap and nasty panels have a warranty of 10-15 years.)

Inverters have much shorter warrantys.

Remember, the Effective Lives given by the ATO are a guide. It is possible to make your own determination. Of course, you might have to justify this. For example, if you had an IP that was rented out to miners and you had carpet in it, you might have a case for saying that the 10 year Effective Life for carpet was a bit too long.

Redsquash, I reckon (and this isn't advice) that you could justify using 20 year EL for the panels and one for the inverter that is in line with its warrantee period.

Scott
 
Is this still 20 years? Couldn't find the doc.

Looking at putting 3x5kws into a commercial property - on 3 different meters.

Any tips on solar from recent installations?
 
Redsquash, I reckon (and this isn't advice) that you could justify using 20 year EL for the panels and one for the inverter that is in line with its warrantee period.

Guarantee periods are but one factor to consider rather than conclusive evidence.

Manufacturer's warranty periods just indicate that they only expect, for example, 1% to fail by this time. Otherwise it would be uneconomical to offer warranty periods.

That means that at least 99% are expected to be running fine at the end of the guarantee period.

Cars usually have a two year manufacturer's warranty and yet the Commissioner's default effective life for normal use is 8 years.

See how you go in an audit about depreciating your brand new Commodore over 2 years !

Cheers,

Rob
 
Back
Top