Changes to depreciation of photovoltaic power plants

A new amendment to the Energy Act changes the way that photovoltaic power plants are depreciated. The special means of tax depreciation of the technological parts of the plants was revoked as of 1 August 2025.

Originally the technological parts of photovoltaic power plants were depreciated evenly for 240 months, and the construction part was classified in the appropriate tax depreciation group and depreciated in the even or accelerated way for a given period. Now, the construction and technological part will be classified in the depreciation groups and depreciated in the even or accelerated way for the minimum period stipulated by the Income Tax Act. This brings us back to the legal situation valid before 1 January 2011.

The amendment does not apply to plants whose depreciation started before 1 July 2024. In those cases, the taxpayers can keep the special way of depreciation - i.e. even depreciation for 240 months. Owners of the plants that were included in a company's assets between 1 July 2024 and 31 July 2025 can choose between the original and new methods of depreciation. If the taxpayer chooses the new method of depreciation, he has to apply it from the date of the start of depreciation, and there is a chance that he would be obliged to file an additional corporate income tax return. Regarding assets newly included in a company's assets after 1 August 2025, assets used for generating solar energy can be depreciated only via the even or accelerated method, according to the classification in the respective depreciation group.