As Kerala accelerates toward a clean and green mobility future, electric vehicles are fast becoming a common sight on its roads. But as more people adopt EVs, one key question arises — how can homeowners, businesses, and industries make the shift cost-effective?

For residential users, the government offers solar subsidies under the PM Surya Ghar: Muft Bijli Yojana. However, commercial and industrial users may not be eligible for the same consumer-level subsidy. Instead, they can benefit from EV charger tax benefits in Kerala, which fall under Section 32 of the Income Tax Act.

These tax incentives allow businesses to recover part of their investment by claiming depreciation benefits on EV charging infrastructure. It’s an effective way to encourage clean energy adoption while making EV charger installation in Kerala financially viable.

Let’s explore how these tax benefits work, who can claim them, and why this matters for Kerala’s journey toward sustainable transportation — with guidance from Solar Master, Kerala’s trusted name in solar and EV solutions.

 Why Tax Benefits Matter for EV Charger Installation

Installing an EV charger is not just about convenience — it’s an investment in the future. Businesses, commercial property owners, and industries that install EV chargers contribute to the larger vision of a sustainable Kerala. However, such installations involve upfront costs, including the charger itself, wiring, and sometimes solar integration.

To make these investments attractive, the Government of India allows companies to claim depreciation under the Income Tax Act. This means a portion of the installation cost can be deducted as an expense, lowering the taxable income. Over time, this creates significant savings.

For example:

• If a business spends ₹5,00,000 on EV charger installation, and claims 40% depreciation, it can reduce its taxable profit by ₹2,00,000 in the first year itself.
• This not only minimizes tax liability but also shortens the return-on-investment period.
  

So, while residential users save upfront through subsidies, commercial entities gain through long-term tax savings — a win-win for clean mobility.

Understanding EV Charger Tax Benefits in Kerala

Under Section 32 of the Income Tax Act, businesses are allowed to claim depreciation on fixed assets, including electric vehicle charging stations.

Here’s how it works:

1. Eligibility
   • Available only for registered businesses, commercial establishments, or industrial units.
   • Applies to EV chargers, solar panels, batteries, and related infrastructure used for business purposes.
2. Depreciation Rate
   • The accelerated depreciation benefit for EV-related assets has historically been 40%, though this can vary based on updates in tax law.
   • This accelerated rate helps businesses recover capital costs faster compared to regular assets (which typically depreciate at 15%).
3. Tax Advantage
   • Depreciation reduces taxable profits, thereby reducing the total tax payable.
   • The higher the depreciation, the greater the savings.
4. Indirect Benefits
   • Helps offset the cost of adopting green infrastructure.
   • Encourages industries to set up EV charging points for employees and customers.
     

 Example Calculation

If a commercial building installs EV chargers worth ₹8,00,000, and claims 40% depreciation, it can reduce taxable income by ₹3,20,000 in the first year. At a 30% corporate tax rate, that’s ₹96,000 saved in taxes — just through depreciation.

This is one of the key EV charger tax benefits in Kerala that many businesses overlook but can leverage with proper financial planning.

Subsidy vs. Tax Benefit – What’s the Difference?

It’s important to distinguish between government subsidies and tax benefits — both are financial tools, but serve different purposes and target different audiences.

In simple terms, residential consumers get direct savings, while commercial setups enjoy indirect financial relief through reduced taxes.

So, even if factories, shops, or offices are not eligible for Kerala’s solar subsidy, they still have strong financial motivation to install EV chargers — thanks to tax benefits and energy savings.

Indirect Financial Benefits for Businesses in Kerala

Apart from direct depreciation benefits, commercial and industrial entities in Kerala can enjoy several indirect financial advantages by installing EV chargers:

1. Reduced Electricity Costs

When EV chargers are paired with solar energy, operational costs drop drastically. Businesses that install solar + EV systems can generate their own power, significantly lowering grid dependency.

2. Net Metering and Gross Metering

Kerala allows solar-integrated systems under net metering (for residential and small commercial users) and gross metering (for large-scale setups). This helps offset energy consumption by feeding excess solar power back to the grid.

3. Demand Charge Reduction

In some cases, DISCOMs (like KSEB) offer incentives or reduced demand charges for renewable infrastructure projects.

4. CSR and Green Brand Value

Installing EV chargers and solar systems can count toward Corporate Social Responsibility (CSR) goals, while also improving brand perception among eco-conscious customers.

5. Long-Term ROI

By combining tax savings, reduced energy bills, and brand value, the payback period for EV chargers becomes shorter — often within 3–5 years, especially when powered by solar.

How Solar Master Simplifies the Financial Process

As one of Kerala’s most trusted impaneled vendors for solar power and EV charging solutions, Solar Master helps customers make smart, sustainable, and financially rewarding energy decisions.

Here’s how Solar Master supports you at every step:

1. Expert Consultation
   
   • Detailed site assessment to understand energy needs.
     
   • Guidance on choosing between home, commercial, or solar-integrated EV chargers.
     
2. Cost & Tax Optimization
   
   • Assistance in identifying depreciation-eligible assets.
     
   • Documentation support for businesses claiming Section 32 benefits.
     
3. Integration with Solar Power
   
   • Installation of hybrid solar + EV systems for maximum efficiency.
     
   • Set up for net metering or gross metering, where applicable.
     
4. After-Sales Support
   
   • Maintenance contracts, software monitoring, and technical support.
     
   • Warranty management and performance tracking.
     

 To understand installation pricing and ROI, read our detailed post on EV Charger Installation Cost in Kerala.

 Kerala’s EV Policy 2025 and Tax Synergy

Kerala’s upcoming EV Policy 2025 focuses on building a strong charging ecosystem across cities like Kochi, Trivandrum, Calicut, and Thrissur. While subsidies remain residential-focused, the policy encourages private participation through fiscal incentives, including:

• Public-private partnerships for charging networks.
  
• Incentives for renewable integration (solar EV charging).
  
• Support for MSMEs investing in green infrastructure.
  

This aligns perfectly with the tax benefits under Section 32, creating a holistic framework where both government and business incentives push Kerala toward clean transportation.

With Solar Master, you can be assured that every project — from EV charger installation in Kerala to solar integration — is handled with compliance, efficiency, and sustainability in mind.

 Conclusion

While residential users in Kerala benefit from solar subsidies, commercial and industrial users can maximize their savings through EV charger tax benefits under Section 32 of the Income Tax Act.

By combining tax depreciation, energy efficiency, and brand value, installing EV chargers becomes not just an environmental decision — but a smart financial move.

At Solar Master, we simplify every step, from consultation and installation to subsidy or tax documentation, helping Kerala move toward a clean, self-sufficient, and electric future.

 Ready to explore sustainable EV charging solutions?
Contact Solar Master today to install your EV charger and make the most of your financial and environmental benefits.

Contact Today!

Reliable Solar Partner in Kerala.

Serving homes, businesses & industries across Kochi & Kerala