Depreciation

Solar Photovoltaic Depreciation

A recent Internal Revenue Service ruling establishes a 5-year depreciation period for qualifying solar energy property, effective for assets placed in service beginning in 2026. . Solar photovoltaic (PV) panels deliver a host of financial and environmental benefits to businesses looking to reduce energy spending and shrink their carbon footprint. However, the efficiency, value, and performance of PV panels all decline with age. This decision delivers essential predictability for solar developers, investors, and tax equity providers who depend on. . The OBBB signed into law by President Trump on July 4, 2025, fundamentally alters the depreciation landscape for solar energy systems. Understanding. . Solar energy systems installed for business or investment purposes qualify as depreciable property under the Internal Revenue Service (IRS) code. This designation allows taxpayers to recover the cost of the asset through systematic deductions over a defined period.