The financial benefits of ‘going solar’ for small business

Posted on 26 February 2018

As an Australian business, there are plenty of reasons to go solar.

Firstly, we all know that protecting the environment is important. Because of this, many responsible business owners and managers are choosing to keep their greenhouse gas and carbon emissions to a minimum. In addition, going solar makes an awful lot of financial sense, with benefits ranging from significantly lower energy costs to small business tax incentives. Let’s explore in further detail:

Lower bills

The most obvious benefit to going solar is that, because you’re generating your own energy and taking less from the national grid, your power bills will be dramatically smaller. Watching your bottom line translates directly to profits. Better for you, better for your business.

Solar tax incentives

In the 2015/16 Federal budget, it was announced that small businesses with less than $2 million turnover can claim a simple tax deduction for any purchase below $20,000. Among these potential and unlimited purchases is a solar installation, and at the moment the scheme is set to run until 30th June 2017.

Basically, there is no catch – any business asset can be bought and written off, translating into much-needed cash flow, investment and growth for any small business. And, if the installation costs more than $20,000, these assets can be ‘pooled’ and depreciated at 15% in year 1 and 30% in year 2 and beyond.

As with any potential tax arrangement or benefit for your small business, you should always seek independent and expert advice.

Future proofing

Non-renewable sources of energy are running out and that means ever higher prices in the future. Investing in solar now means you will be ahead of the curve and well set up for what the future brings.

Feed-in tariffs

Not only will your bills be smaller, you might do away with bills altogether and start actually earning through your solar installation. If you produce a surplus of energy, or get your usage below a threshold, anything that can be fed back into the national grid might mean you are reimbursed.

In South Australia and the other states, the way feed-in tariff schemes work and are structured differs, so you should always check with authorities and seek independent advice before proceeding.

Image

A business that has ‘gone solar’ will set itself apart from the competition with its superior ethics and be repaid for its care of the community and environment with a better image that can be used for marketing.

STCs

Ever heard of the Small-scale Renewable Energy Scheme? Under the government program, businesses can earn Small-scale Technology Certificates (STCs) which can then be sold to other individuals or businesses, or traded in for some of the cost of having bought and installed the solar or renewable energy installation.

RECs

RECs, or Renewable Energy Certificates, are handed out at the point of sale with approved solar equipment, with retailers able to use them immediately in the form of discounts or low prices. Like STCs, it can save you thousands.

If you’ve been convinced as to the financial benefits of solar power, please get in touch with us at Solar Power Direct today.