PV*SOL Expert 6.0 - Manual - Valentin Software

11.3.1.5 Tax
In order for tax payments to be included in the Economic Efficiency Calculation, you will
need to select the Allow for Tax field.
It is usually the case that with a profitable investment the inclusion of tax payments has a
negative impact on the results. The results only improve with changing tax rates. A change
in tax rate is possible, for example, if the investor retires after 10 years. If, at the time that
the system starts to enter the profit zone, the investor is making losses on other
investments, the tax rate could also be set at zero.
Marginal Tax Rate for Income/Corporation Tax:
This is the tax rate that needs to be paid for each additional taxable Euro. The
amount should also appear in your tax assessment.
If Allow for Change in Marginal Tax Rate is selected, the New Tax Rate given in
Change of Tax Rate comes into the calculation.
Depreciation Period:
The period over which the investment can be written-off against tax. The usual
period for photovoltaic systems is 20 years.
Depreciation Type:
Linear (straight line):
Annual depreciation is calculated from the investment amount divided by the
depreciation period.
Degressive (reducing balance):
Annual depreciation is not constant, but is calculated as follows:
Investments that have not yet been depreciated are multiplied with the rate of
depreciation. This leads to a year by year decrease in the annual depreciation. If
the annual depreciation sinks below the value that is obtained through linear
depreciation, the residual value is calculated as linear depreciation for the
remaining period.
132