The economy is suffering a great deal from coronavirus (COVID-19) and also the recent bushfire disaster across Australia, these are some of the toughest of times for businesses. To combat relative challenges, the Federal Government has announced an economic stimulus worth of about $17.6 billion.
The stimulus that will also make commercial solar power more accessible includes a range of tax deduction incentives. This comes alongside other investments all are supposed to bring much needed relief to businesses struggling with the impacts.
Companies that are looking to improve their tax deductions for renewable energy solutions will take benefit of it, like solar power systems. The best thing is that these arrays can be of any size or format.
Whether they carry a limited number of kilowatts for small business across a smaller roof space, or a larger system with thousands of panels ( factories or warehouses), all will fall under this incentive.
Even large-scale solar farms will be benefited by this initiative.
The biggest benefit comes to systems worth more than $149,000 or less, of which need to have been purchased this financial year. However, there’s still an incentive for all commercial Photovoltaics systems that have been implemented across the board, until 30th June 2021.
All parts of this stimulus will be taken action on immediately.
Key incentives for Solar panel installers:
If you’re a solar installer, you can expect a number of advantages as a result:
Instant write-off increased from $30,000 to $150,000 (for companies sitting under $500 million turnover)
50 percent of BAS statement paid direct to your business account
50 percent bonus depression in the first year
50 per cent of the salary of apprentices paid directly to your bank account.
*According to PV Magazine Australia
Low-interest rates mean accessibility and ease for customers.
When assessing the stimulus package in terms of selling solar power, there is an important bottom line to take away from it.
Because of the package overall, the bonus tax write-off,the write-off itself, GST rebate and electricity savings, a majority of businesses won’t need any cash on hand to commence installations.
Overall, the provided amount of about $150,000 is more than enough to pay off a solar capacity of 100kW (depending on the complexity of the installation and location of it).
Solar inverter upgrade:
Instructions to consumers:
This is a tough time for all industries specifically renewables included. It is highly recommend to do your research before opting for any supplier of panels. it’s worth taking advantage of this current tax incentive.