Depreciation period of wind turbine generator set

When did the wind turbines become depreciated?

The turbines were first put into operation in November 2004. In September 2005 the wind turbines were inspected and accepted by the GmbH. The KG wished to depreciate the turbines from November 1, 2004 based on a useful life of 16 years. The tax office declined and demanded depreciation to begin from September 2005.

How long does a wind turbine last?

Under present ATO depreciation rulings, a wind turbine has an effective life of 20 years while the generator transformer and unit transformer have effective lives of 30 years in a sub-tropical area (25 years in the tropics). With such a long effective life, only a small depreciation allowance can be claimed each year.

What is tax depreciation for wind turbines?

Supreme Tax Court judgment IV R 1/14 of September 22, 2016 published on December 7 Tax depreciation for wind turbines presupposes economic ownership of the asset. A change in economic ownership requires that any risks are transferred to the purchaser/customer.

How long does a wind power transformer last?

Consider the case of wind power. Under present ATO depreciation rulings, a wind turbine has an effective life of 20 years while the generator transformer and unit transformer have effective lives of 30 years in a sub-tropical area (25 years in the tropics).

How long is the procurement period for solar & wind energy equipment?

On the other hand, when the Procurement Price Calculation Committee decided the procurement period for each area, it was determined to be 20 years for both solar and wind energy equipment, exceeding the statutory useful life for tax purposes of 17 years. 2. Capital expenditures and repair expenses

How has technology changed the cost of wind-generated power?

The cost of wind-generated power has also been falling quite rapidly as technology has changed. Individual turbines were around 50kW in 1980 with 15 meter rotor diameters and are now up to 5000kW with 124 meter rotor diameters.