Section 15(2) in The Central Electricity Regulatory Commission (Terms And Conditions For Tariff Determination From Renewable Energy Sources) Regulations, 2009
(2)Depreciation per annum shall be based on "Differential Depreciation Approach" over loan tenure and period beyond loan tenure over useful life computed on "Straight Line Method". The depreciation rate for the first 10 years of the Tariff Period shall be 7% per annum and the remaining depreciation shall be spread over the remaining useful life of the project from 11th year onwards.
