Business to benefit from solar budget boost

Geelong-solar-for-business-tax-break

Business in Geelong and the Surfcoast can install solar and benefit from tax break. Call us on 1300 931 929 for more info.

Businesses looking to invest in solar power have been given further incentive with changes announced in the budget last week.

The Federal Government have announced an increase to the turnover threshold for businesses wanting to take advantage of immediate tax deductions for business equipment – like solar power systems- up to $20,000.

Currently businesses with a turnover of $2 Million annually can take advantage of this scheme.

Changes to the budget mean that from July 1st 2016, businesses eligible for this tax write off will be increased to $10 Million.

This could turn out to be a big help for savvy businesses who have been considering using solar to get their overheads down, increase their cash flow and bottom line.

Many businesses tend to use their electricity between the hours of 9am to 5pm – the ideal times of day for a solar system to generate electricity. With the reduction in feed in tariff rates, installing solar is all about being able to self-consume your solar energy on site and offset the cost of purchasing electricity from the grid. We’re already seeing businesses saving thousands of dollars a year on their electricity bills.

Most commercial systems that we install have a financial payback of 4-5 years, but we would expect the instant tax deduction to reduce that further. Solar power systems have an expected system life of 20-25 years, so the system will continue to provide savings well beyond the payback period.

 

In summary

Invest in a solar system up to $20,000 ex GST. You can get a good quality 10-15kW solar system.

  • Claim the entire cost of the system as an immediate tax write-off.
  • Slash your electricity costs more or less overnight – Many businesses are using a large amount of their power during the day when the sun is shining.
  • With the huge savings made, pay off the remainder of your system in 2-5 years.
  •  Gain additional savings on your power bill over the next 20-25* years therefore increasing your cash flow and your bottom line.

 

*Expected life system of most solar systems