With the rising electricity prices and increasing environmental concerns. Switching to renewable energy is no longer just a conscious decision but a smart economic one. More businesses now have the opportunity to take advantage of the instant asset write-off thanks to the recent extension of the threshold.
Instant Tax Deductions on Solar Systems
The recent expansion of the instant write-off scheme allows more businesses to be eligible for the program. The extension enables companies to claim a tax reduction on the cost of solar installations. If it’s under the threshold through to June 30, 2020 cut-off. The scheme was recently broadened again to include companies with less than $50 million in annual revenue. Previously it was less than $10 million. The instant tax write-off level has also increased from $25,000 to $30,000.
More Incentives through STCs & FiTs
In addition to the instant asset write-off, more help is on hand for businesses looking to install solar panels through Small-Scale Technology Certificates (STCs). Which can be used to recoup some of the cost when installing solar systems as well as Feed-in tariffs (FiTs). FiTs is a payment you receive by your electricity retailer for feeding excess solar electricity back into the grid.
Falling Costs for Commercial Solar
The dramatic reduction in costs for commercial solar and rising electricity prices are also encouraging more Australian businesses to look into solar panels. Commercial solar battery installations have also fallen with further falls predicted over the coming year. According to Clean Energy Australia Report 2019, there has been a 45% increase in commercial solar installations.
With the instant asset write-offs including the extra incentives for businesses through STCs and FiTs as well as the falling costs for commercial solar, there’s no better time to shift to renewable energy sources.