Commercial solar incentives

$20,000 Solar Tax Deduction for Small Business

When doing the sums on the financial viability of a commercial solar system for your business, you need to take into account both the savings on your electricity costs in conjunction with any tax depreciation deduction benefits. The federal government recently brought in a $20,000 tax break for small businesses with a turnover of less than $2 million, available up until June 30th 2017, this provides a great incentive for small businesses to install solar power and reduce their electricity bills at the same time. Solar systems installed on commercial premises are generally eligible for tax deductions, but we recommend that you consult your accountant to see how this may be applicable to your situation.

Commercial solar incentives

Solar Winery Geelong

Renewable Energy Target & STCs

The main government mechanism supporting renewable energy and solar power in Australia is the Renewable Energy Target (RET). The RET provides an incentive to business and homeowners to install solar power by giving them the opportunity to create tradeable Renewable Energy Certificates (RECs). Systems up to 100kW fall into the small scale scheme and can create Small-scale Technology Certificates (STCs) for systems above 100kW Large-scale Generation Certificates (LGCs) are created under the large scale scheme.

Green Energy Options offer a point of sale discount for STCs on commercial solar systems, depending on the size of the array the STC value can be up to tens of thousands of dollars. When choosing to take a point of sale discount, Green Energy Options takes on the responsibility of filling in the paperwork, creating the certificates and trading them after the installation, meaning we are out of pocket for the STC amount, rather than our customer.

 

Feed in Tariffs

Commercial solar power systems are generally geared towards maximising self-consumption of solar power directly from your roof rather than exporting power back into the electricity grid and being paid a feed in tariff (FIT).  Most commercial solar systems however, will have some excess solar generation at some times and in this case you will be paid the current Victorian feed in tariff, which for 2015 has been set at 6.2 cents per kWh.

Green Energy Options can provide detailed savings estimates for your commercial solar system, taking into account costs offset by using solar power rather than electricity from the mains power grid as well as the feed in tariff export payments. Note that most companies will be paying 20c/kWh or more for their electricity and this cost offset is the main focus for electricity bill savings, rather than the lower export or feed in amount of 6.2c/kWh.

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