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The Australian Government announced the most comprehensive expansion of the Instant Asset Write-Off scheme. Here is why your business should invest in solar panels now.

Update: As of 6 October 2020, the Government announced the most comprehensive expansion of the Instant Asset Write-Off scheme that has increased from $150k to UNLIMITED and will run until 30 June 2022. The new extension and expansion of Australia’s instant asset write-off scheme could be of significant benefit to businesses considering installing solar power.

On 6 October, Australia’s 2020-21 Budget was handed down by federal Treasurer Josh Frydenberg who committed a further $98 billion, on top of the $257 billion that has already been directly pumped into economic support aimed at cushioning the blow of COVID-19 and strengthening the nation’s recovery from the pandemic. Amongst the measures aimed at helping to buoy Australia’s economy, the most talked about is the move to further expand its instant asset write-off tax break initiative for businesses. Now, the government will allow businesses to write off the full value of assets they purchase. This budget along with some of the other recent announcements by the federal government creates a compelling argument to capitalise on the new generous government incentives and invest in solar.

It is the single biggest initiative the Government has announced to stimulate the economy

The Small-Business instant asset write-off was first introduced in the 2015‑16 Budget, and the threshold was $30,000 and increased earlier this year to $150,000. More recently it has been upped again in response to the Covid-19 recovery plan to an unlimited valuation allowing businesses to immediately fully depreciate eligible asset purchases – including solar power systems. As part of the Government Economic Stimulus Package, Businesses with a turnover of up to $5 billion will be able to immediately deduct the full cost of eligible depreciable assets, like a commercial solar system, acquired from 6 October 2020 and first used or installed by 30 June 2022. New solar and energy efficient equipment is included as well as improvements to existing equipment and infrastructure, e.g. upgrading an existing solar system.

If you have purchased or are planning to purchase a solar system for your business, you may be eligible to claim an immediate deduction. The following tips can help you get your instant asset write-off claim right:

  • Check if you are an eligible business on the ATO website here
  • The solar system must be first used or installed ready for use before 30 June 2022.
  • If your solar system is for a mix of business and private use, you can only claim the business portion
  • If you do not use the simplified depreciation rules, you may be eligible to deduct an amount using accelerated depreciation for your solar system.

Instant Asset Write-off for Commercial Solar Systems – Everything You Need To Know:

  1. Businesses and organisations with annual revenue of up to $5 billion are eligible.
  2. Under the newly expanded scheme, ABN holders can now claim for the full cost of an eligible asset (previously only up to $150k) that is first used or installed before 30 June 2022.
  3. Venergy offers commercial payment plans that can be used to finance the purchase of the solar system and still allow the instant asset write-off to be claimed whether you own or rent the building.
  4. Because the policy is based on individual assets you could install the multiple solar systems before 30 June 2022 and still be able to claim the entire project as an instant asset write-off.

$150,000 Can Easily Pay for 100 Kilowatts of Solar Power

So what is the practical application of this incentive for small and medium businesses considering solar? Let’s break it down:

Based on a typical 100 kWp system you could expect:

Gross System Value – $150,000
Asset Write Off Tax Benefit (30% company tax rate) + $45,000
Small Scale Trading Certificate Rebate (STC) + $50,000
Net System Value = $55,000

The projected payback on 100kW system is 1-2 Years.

For a 100kW system, the renewable energy target already provides a ‘green benefit’ of some $50,000 towards your move to cheaper, renewable energy. With an immediate tax deduction introduced through the stimulus package, it is possible to reduce your year 1 cash flow by a further $45,000* for systems purchased by eligible businesses before 30 June 2022.

The purchase of a Solar Solution for your business is a sensible way to redirect your cash flow away from paying future Tax Liabilities and Electricity bills

Solar A Good Fit For Small and Medium-sized Businesses

With the generous federal government incentives, it is no surprise that the adoption of solar energy continues to rise. As of 30 June 2020, there were over 2.46 million PV installations in Australia, with a combined capacity of over 17.6 gigawatts.

Join the thousands of businesses that have already taken advantage of the benefits of switching to solar power. Venergy Australia offers businesses a clear pathway to achieving these outcomes. Contact us today to discuss options for your business for a straightforward turn-key solution.

Upload a recent energy bill and we will perform a no-obligation formal quotation for your review.

TAKE ADVANTAGE OF THE SA GOVERNMENT’S HOME BATTERY SUBSIDY TODAY!

The SA Home Battery Scheme Subsidy is now reduced from $4,000 to $3,000 following a steady uptake of home battery systems this year, according to a statement attributed to the South Australian Government.

The Scheme was launched in October 2018, and has since supported the installation of thousands of home batteries across the state.

Here is what you need to know about the South Australian Home Battery Scheme.

What is the South Australian Home Battery Scheme?

The Home Battery Scheme grants 40,000 homeowners in South Australia access to over $100 million in State Government subsidies and assists them in paying for the installation of home solar battery systems.

The subsidy was set initially at $600 per kWh for energy concession holders and $500 per kWh for non-holders, where those opting into the scheme would be eligible for rebates up to $6,000.

The cost of a home battery system ranges according to the size of the battery. This means the bigger the battery is, the larger is the subsidy. The subsidy is calculated based on the kilowatt hour size of the battery purchased. For example, a battery with 5kWh of storage could receive a $3,000 for energy concession holders.

Current ‘Step Three’ Battery Subsidy

As of September 10, 2020, the subsidy has dropped again from a maximum subsidy of $4,000 to $3,000 per battery installed, according to the Home Battery Scheme website.

Current Home Battery Scheme subsidy levels

Energy concession holder$300 per kWh
All other households$200 per kWh
Maximum subsidy per battery installation$3,000

In March this year, the South Australian Government announced that the Home Battery Scheme subsidy levels and cap would be reduced. The ‘Step Two’ level was introduced and set at $400 per kWh for energy concession holders and $300 per kWh for non-holders, and up to a maximum subsidy of $4,000 , which was previously capped at $6,000.

Currently, all approved home battery systems are eligible for the Step Three subsidy rates set at $300 per kWh for energy concession holders and $200 per kWh for non-holders, up to a maximum of $3,000 for energy concession holders and up to $2700 for non holders.

Venergy Australia is a certified system provider

For your subsidy application to be processed, you or your certified system provider will create a Quote Record through the Plenti (formerly RateSetter) portal. 

After the application has been submitted, you will receive confirmation of the subsidy rate that you have been conditionally approved for. If you do not wish to continue, you can elect to withdraw your application.

If the claim is made through your system provider, the application is taken care by the system provider and the subsidy amount is deducted from the amount quoted by the system provider. 

We at Venergy will take care of the entire process for you and include the discount in the system price quoted to you.

It is important to note that the subsidy amount maybe subjected to a further reduction in response to the the increasing demand for solar systems and batteries. Furthermore, the subsidy is only applicable for systems that have been installed within the timeframes indicated in the Scheme’s Subsidy Terms – 12 months for new builds and six months for all other properties.

Call our office at 1800 836 374 or fill out this form on our website  to register your interest in the SA Government Home Battery Scheme while subsidies are still available.

VENERGY CUSTOMER REVIEWS

“Since installing my battery and joining South Australia Virtual Power Plant through the Tesla Energy Plan, I have saved over $370 on my electricity bill per quarter. I joined to save even more money off my power bill by eliminating my daily supply charge and getting access to the best electricity rate in South Australia. Knowing I’m helping others save money through the renewable energy I generate and put back into the the grid and is also really important to me.”

– Alan Hodges
Tesla Energy Plan Customer


TAKE ADVANTAGE OF THE SA GOVERNMENT’S HOME BATTERY SUBSIDY TODAY!

Request a Free Quote