태양광 설비투자에 대한 제도적 유인방안 연구: 감가상각법의 경제적 효과 분석The Effects of Depreciation Methods on Investment Motivation for Solar Photovoltaic Systems
- Other Titles
- The Effects of Depreciation Methods on Investment Motivation for Solar Photovoltaic Systems
- Authors
- 김경남
- Issue Date
- 2020
- Publisher
- 한국신·재생에너지학회
- Keywords
- PV investment; Feasibility study; Tax incentive; PV depreciation; Discounted cash flow method; Modified accelerated cost recovery system; 태양광 투자; 경제성분석; 세제 유인정책; 태양광 감가상각비; 할인현재가치법; 수정가속상각법
- Citation
- 신재생에너지, v.16, no.4, pp.65 - 75
- Indexed
- KCI
- Journal Title
- 신재생에너지
- Volume
- 16
- Number
- 4
- Start Page
- 65
- End Page
- 75
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/60357
- DOI
- 10.7849/ksnre.2020.0024
- ISSN
- 1738-3935
- Abstract
- The value of tangible assets depreciates over their useful life and this depreciation should be adequately reflected in any tax or financial reports. However, the method used to calculate depreciation can impact the financial performance of solar projects due to the time value of money. Korean tax law stipulates only one method for calculating the depreciation of solar photovoltaic facilities: the straight-line method. Conversely, USA’s tax law accepts other depreciation methods as solar incentives, including the modified accelerated cost recovery system (MACRS) and Bonus depreciation method. This paper compares different depreciation methods in the financial analysis of a 10 MW solar system to determine their effect on the financial results. When depreciation was calculated utilizing the MACRS and Bonus depreciation method, the internal rate of return (IRR) was 10.9% and 16.4% higher, respectively, than when the Korean straight-line depreciation method was used. Additionally, the increased IRR resulting from the use of the two US methods resulted in a 20.5% and 27.4% higher net present value, respectively. This shows that changing the depreciation calculation method can redistribute the tax amount during the project period, thereby increasing the discounted cash flow of the solar project. In addition to increasing profitability, USA’s depreciation methods alleviate the uncertainty of solar projects and provide more flexibility in project financing than the Korean method. These results strongly suggest that Korean tax law could greatly benefit from adopting USA’s depreciation methods as an effective incentive scheme.
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Collections - Graduate School of Energy and Environment (KU-KIST GREEN SCHOOL) > Department of Energy and Environment > 1. Journal Articles
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