The use of alternative sources of electricity production has been increasing in recent years, and the installation of photovoltaic panels is being decided by more and more families, but also enterpreneurs. The photovoltaic power plant is the subject of various discussions, whether in terms of building law, excise duty or also in terms of accounting. For entrepreneurs, in addition to meeting tax obligations, it is also important to correctly classify a photovoltaic power plant and to book all the movements associated with electricity production.

In order to be classified, the photovoltaic system itself has to be divided into the construction part and the technological part.

The construction part consists of the following:

• Fencing and protection of the power plant - as the fencing is considered a minor construction (§ 139b, section 7, letter b of Act No. 50/1976 Coll.), we classify it in the 4th depreciation group, item 4-16
• Communications and paved areas - in the case of communications, these are utilities, which are classified in depreciation group 5, item 5-2
• Transformer station buildings - are depreciated as buildings in depreciation group 5, item 5-1
  • Supporting structure - if it is firmly connected to the ground, it is considered as an engineering structure and classified in depreciation group 5, item 5-2

The technological part consists of :

• • Photovoltaic panels - which are classified in depreciation group 2, item 2-22, CP 28.29.
  • Current converters - which are classified as products such as electric motors, generators and transformers depreciated in depreciation group 3, item 3-1, CP 27.1.

If the entrepreneur plans to install photovoltaic panels on the leased property, it will be a technical improvement, which the lessee can include in the property and subsequently depreciate after meeting the conditions (§ 24,  section 2 of the Income Tax Law). The photovoltaic panels, in this case, the technical improvement of the photovoltaic panels, will be depreciated in the same depreciation group as the leased property on which they have been installed.

There are various accounting cases for booking a photovoltaic power plant, based on § 35 of the Ministry of Finance's measure from 16 December 2002 No. 23054/2002-92. The first is the acquisition and classification. The acquisition is booked in account 042 - Acquisitions of tangible fixed assets and, when the power plant is put into operation, it is booked in the account 022 - Separate movable assets and sets of movable assets. When the photovoltaic panels installed on leased property are classified as technical improvement, we booked for the classification in account 029 - Other tangible fixed assets. Production of own electricity for own consumption is treated as an activation in terms of the Accounting Law and is credited to account 621 - Activation of materials and goods and debited to account 502 - Energy consumption. The production of own electricity will be valued at the own costs entered into the production, such as: excise duty on electricity, depreciation of the individual parts of the plant, possible maintenance costs. In the case of the sale of electricity, the sale of services is booked to account 602 - Revenues from the sale of services.