Budget 2015 had a nice surprise for small businesses contemplating installing solar power systems. The case for doing so is now even more compelling.
On Tuesday night, Treasurer Joe Hockey announced details of the Government’s small business package. Among the measures was a significant boost in the value of items that can be written off immediately instead of over 2 – 3 years.
“Small business can claim an immediate tax deduction for each and every item they purchase up to $20,000 … anything under $20,000 is immediately 100 per cent tax deductible from tonight,” said Mr. Hockey.
Previously, the upper limit was just $1,000. Mr. Hockey says the incentive could potentially benefit 96 percent of Australian businesses.
Labor has already indicated it will support the small business package.
The tax break will encourage small businesses to acquire many items on their wish lists; such as computers, tools – and solar panels.
Thanks to the plummeting price of components in the last couple of years, $20,000 these days will buy a substantial solar panel array that can provide significant savings on power bills.
Of course, $20,000 is great if you have it or access to it. But even for businesses that may not have $20,000 to spend; a smaller system can offer significant financial benefits.
According to national solar residential and commercial provider Energy Matters, a good quality 5kW solar power system can be purchased from under $7,000 and generate electricity savings of up to $2000 a year depending on installation location. Solar has previously been shown by Energy Matters to be one of the best investments around.
Additionally, going solar can enhance the environmental profile of a business as it is favorably perceived by many customers and potential customers – it’s a very visible signal of sustainability efforts.
The company advises that before businesses race out to acquire a system, they should first consult their accountants.
Energy Matters was the nation’s leading commercial solar provider in 2014, having installed more capacity in the 10-100kW range than any other installer in the nation. Businesses interested in going solar can contact the company on 1800-EMATTERS.
The Budget news is expected to create a mini-boom in the solar industry.
According to RenewEconomy, Bloomberg New Energy Finance Australia has said its previous forecast of 18GW of rooftop solar by 2030 would now be upgraded. BNEF Australia head Kobad Bhavnagri believes between 40-70 per cent of available building stock will have solar within a decade, and all building stock by 2030.