Solar For Small Businesses
In recent years the uptake of residential solar in Australia has thoroughly increased and benefited many households with reduced electricity bills through generating their own energy and having less reliance on the grid or energy retailers. As well as Australian’s noticing the long term benefits of installing solar, the steep increase is partially thanks to the rebates and incentives that the Federal and State Government’s provide which assist in reducing the initial upfront costs when installing.
But what you might not of known is small businesses also have access to installing solar at reduce costs through not only the Federal Government Solar Rebate but the Instant Asset Write-Off Scheme, which enables small businesses to immediately fully depreciate eligible asset purchases, such as solar systems if they are no more than $30,000.
Commercial Solar Rebates and Incentives Available
Federal Government Solar Rebate
The Federal Government Solar Rebate, officially known as the Small-scale Renewable Energy Scheme (SRES), entitles small businesses large subsidies when installing eligible small-scale renewable energy systems (under 100kW) such as solar PV systems and solar water heater systems. The amount that is deducted from the systems cost is determined by the size system you decide to install. The larger the solar systems size the greater the rebate. The Federal Solar Rebate can save you thousands when choosing to install, however the rebate amount decreases each year until 2030 when it will be eliminated.
The Instant Asset Tax Write Off
The $30,000 Instant Asset Write-Off provides small businesses with an asset write-off of up to $30,000 for assets costing less than the threshold and are purchased and used in the year that the write-off is claimed.
To be able to claim the Instant Asset Write-Off, businesses must be recognised as a small business by the ATO.
Why Solar For Small Businesses Makes Sense
For Australian small business owners a major priority to ensure profitability in a business is to minimise overheads and operating expenses. A huge contributor to these costs is the power usage a business consumes and is charged for by energy retailers. Due to continued electricity price rises this charge shown on your power bill will fluctuate and can cause businesses that require a substantial amount of energy to be burdened with excessively high electricity bills.
It is for this reason many businesses have turned to installing a solar system and relieve themselves from excessively high electricity bills or fluctuating rates.
Business Hours Make the Most Of A Solar Systems Energy Output
While solar for residential homes provides great benefits, one hurdle most solar homeowners have to overcome is altering their energy consumption habits so that they utilise the energy their solar system is generating during the day. Fortunately for businesses who operate during sunlight hours this is not factor you would have to consider as the energy generated by a solar system would directly be used by your business’ daily operations.
When installing solar as a small business not only would you find your operating costs and electricity bills be substantially lowered but you’ll also;
- Be protected against electricity price rate fluctuations
- Reduce your business’ carbon emissions
- Be adopting sustainable energy practices
- Make your business and building more appealing to prospective tenants or buyers
- See a return on invest within 3-5 years
As solar systems continue to decrease in price and the Government is providing rebates and incentives, solar truly is the best way for business owners to reduce the stress of ever-increasing power prices and get back to doing what they do best – running a business!