Is Solar still feasible for business?
With the cost of electricity increasing every year, and hefty incentives from the government for commercial solar installations, now may be your best chance of securing a solar PV system before funding is slashed, according to energy expert Henry Cooke.
Solar is one of the easiest ways to reduce energy costs for most businesses. Once it is installed, the radiant energy from the sun provides clean and free electricity.
“Usually, solar pays for itself in two to five years, depending on your electricity generation and usage, so it can be a cash positive investment for your business,” said Henry.
“Along with being a smart business investment, solar is also great for the environment.”
So, how can I get started on my solar journey? Here are three things you should consider:
1. Make use of government funding and tax breaks before they are gone
Did you know some business owners could write off the cost of a solar PV system, including installation?
In March, the federal government announced their Economic Response to the Coronavirus, which contains additional subsidies, tax breaks and incentives for all Australians, including a section on business investment decisions.
Instant Assets Write Off
Instant asset write off (IAWO) threshold has been increased from $30,000 to $150,000 for eligible purchases and businesses until 31 December 2020.
Backing Business Investment
If your solar plans exceed the IAWO threshold, your business may be eligible for funding from the Backing Business Investment (BBI).
“Every household and business that pays for electricity is funding these subsidies – so it makes sense to take advantage before it is gone,” said Henry.
2. Consider a loan
In the current economic climate, interest rates are very low, making now a good time to consider a loan to kick start your solar energy journey and reduce costs going forward.
3. Install at the right time of year
While solar is likely top of mind while we are all basking in the summer sun, business owners should start considering a move to solar energy during the winter and spring.
Organising to install a solar PV system before summer means you will be set to reap the benefits and October is one of the best months for solar production. You are also more likely to find available trades to get the installation done quickly and conveniently.
Solar power is most effective at reducing capacity charges over the summer period, which is a time your business may also have increased electricity costs to run air conditioners and cool rooms.
If you would like to find out more about how solar could reduce your business’ energy costs, get in touch with the Amanda Energy team.
About Henry Cooke
Henry is a director at Amanda Energy. He has 30-years’ experience owning and operating small businesses in agriculture, retail, property and energy industries in WA. Henry has a Bachelor of Commerce from UWA. His knowledge of a diverse range of machinery and equipment in business gives him grass roots insight as to what levels of power and savings are achievable. He also loves golf and diving.
