Section 16 in Joint Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2019
16. Depreciation.
- 16.1 The value base for the purpose of depreciation shall be the Capital Cost of the asset admitted by the Commission.16.2The Salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the Capital Cost of the asset.16.3Depreciation rate of 5.83% per annum shall be considered for first 12 years and remaining depreciation shall be spread during remaining useful life of the RE projects considering the salvage value of the project as 10% of project cost.16.4Depreciation shall be chargeable from the first year of commercial operation:Provided that in case of commercial operation of the asset for part of the year, depreciation shall be charged on pro rata basis.
