Businesses considering installing solar power could be seriously benefited as the Australian instant asset write-off scheme has been extended and expanded.
Introduced in the 2015-16 budget, the scheme allows businesses to instantly fully depreciate eligible asset purchases – including solar power systems. It has been extended many times and was also to be lifted in February this year from $20,000 to $25,000 and has now been increased in the recent budget to $30,000 and extended until June 30, 2020.
Businesses with revenue up to $10 million were previously only eligible to access the scheme and now firms with revenue of up to $50 million annually can also.
Commercial Solar Beneficial for Businesses
The price has fallen to around $1,000 - $1,300 per kilowatt capacity for a good quality system including the solar subsidy which helps reduce the cost majorly. This means that under the expanded instant write-off scheme, a system of between 23kW and 30kW capacity could be installed.
The electricity generated throughout the solarr system is produced during the hours many businesses are operating and is consumed on site.
Other potential benefit includes a reduction in demand charges, which are based on the peak power drawn from the grid and a significant carbon footprint reduction, an issue that is becoming more pressing in the business world.
Check with a tax professional today to determine if your business is eligible for the instant tax write-off.
With so much to offer businesses, it’s a no brainer as to why the popularity of commercial PV in Australia is continuing to grow with a 45% increase in commercial solar installations throughout 2018, according to the Clean Energy Council.