# Financial Parameters - Depreciation Coefficient Help

## Recommended Posts

Hi there!

Would it be possible if you can please explain to me about the declining balance option in the new Financial Parameters section of the economic evaluation parameter in Grid-Connected Project design. The help file is useful as it gives me a background as to how its calculated, but it mentions the use of a "Depreciation Coefficient".

What is this coefficient dependent upon on? Where can I find further information or examples of typical values that you would insert here?

I was doing some research online, and it came up with French accounting depreciation coefficients - is this what it is referring to?

I am looking to undertake some system design based in Australia so I am not sure how to apply this type of coefficient to my location...

Thanks

Ryan

PS: Thanks to PVsyst for releasing version 7 - it looks really great!

##### Share on other sites

• 3 weeks later...

Hi there!

Would it be possible if you can please explain to me about the declining balance option in the new Financial Parameters section of the economic evaluation parameter in Grid-Connected Project design. The help file is useful as it gives me a background as to how its calculated, but it mentions the use of a "Depreciation Coefficient".

What is this coefficient dependent upon on? Where can I find further information or examples of typical values that you would insert here?

I was doing some research online, and it came up with French accounting depreciation coefficients - is this what it is referring to?

I am looking to undertake some system design based in Australia so I am not sure how to apply this type of coefficient to my location...

Thanks

Ryan

PS: Thanks to PVsyst for releasing version 7 - it looks really great!

Dear Ryan,

The declining balance option permits to accelerate the depreciation in the first years of the project according to a depreciation coefficient.

This coefficient is entirely dependent on the taxation system of your country and the choosen taxation option, there are no typical or standard values.

As examples, in France, for an amortization of 3-4 years, this coefficient is equal to 1.25, 1.75 for 5/6 years, and 2.25 for more than 6 years.

In USA, this coefficient is defined in MACRS (Modified Accelerated Cost Recovery System), it depends on the system, company type ect... A common method is the "Double Declining Balance" method in which the coefficient has a value of 2.

We don't have knowledge about the Australian tax system, but an accountant must know which method is applied for your system and what is the value for this coefficient.

Here I found some information about depreciation methods in Australia : https://help.sap.com/viewer/2754875d2d2a403f95e58a41a9c7d6de/1811/en-US/2cbac733722d10148835ebe587377c69.html

Best regards,