With 2.2GW of rooftop solar installed in 2019 (up from 1.6GW in 2018 and almost double the amount installed in 2017) according to the Clean Energy Council, you don’t need to be an economist to see that the popularity of solar energy in Australia is on the rise.
With this in mind, an increasing question, I have been asked by business owners in recent months, is can I finance the installation of solar panels on my business premises?
The answer to this question is absolutely YES and the good news is with quite a few lenders now offering Clean Energy loans specifically so that businesses can install solar on their premises it makes getting approved even easier.
If you are considering whether installing solar on your premises is worth the investment, these are 5 reasons why solar may be worth installing:
- Reduces your operating costs
If you use a lot of power to run your business then chances are electricity may be one of your highest operating costs or even if its not, chances are electricity is still costing your business a considerable amount of dollars each quarter. If this is the case, then solar could be an advantage to your business as when you employ the use of solar panels for your power you are generally able to significantly reduce your electricity bill and if you are exporting energy from the panels back to the grid you may also be eligible for credits to be applied to your electricity bill.
A good solar installer should be able to give you an indication of the size of the system you need to achieve this along with what they forecast you would save per quarter in installing solar.
As an added bonus, by installing solar you will also no longer be at the mercy of the electricity retailers and their ever increasing electricity prices.
2. Increases the Value of the Assets your business has on hand
As solar systems are considered an asset to your business by investing in solar you also increase the value of the assets you have on hand in the same way that investing in a new truck or vehicle would.
Further, if you own your premises and choose to sell one day, providing you have chosen to install a quality system from a reputable solar supplier, solar could also increase the value of your property.
3. Reduces the carbon footprint of your business
Solar systems are powered by the sun and are therefore considered a renewable source of energy that is sustainable and inexhaustible. Solar energy is also non-polluting meaning that when you install solar on your premises your business is reducing its carbon footprint and if you are exporting energy from the panels back to the grid you are also helping increase the amount of renewable energy generated in Australia.
If your customers are environmentally conscious, installing solar and reducing your carbon footprint may also give you an advantage over your competitors, who may not have taken these steps.
4. You may be eligible for Government incentives helping reduce the cost of the system
Federal Government Incentives are available to households and small businesses who install solar in the form of Small Scale Technology Certificates which help offset some of the cost of installing solar. To find out more check out the Clean Energy Regulator website or discuss this with your solar energy installer who should be across any possible incentives.
5. Possible tax advantages
As with any asset your business purchases, you are generally able to claim the depreciation of the asset over a number of years which helps reduce your company’s taxable income.
Due to COVID-19, up until 31st December 2020, you are currently able to write-off the full cost of an asset in one financial year should you wish to do so. Read our Increased Instant Asset Write Off Scheme post to find out how this works.
If you would like to find out more about either of these Schemes I’d be happy to chat with you about the options available or alternatively, your Accountant would be best placed to help you decide what is right for you.
Want to know more about solar or solar financing? You can contact me on 0431 177 605 or electronically via the contact us form.
COVID-19 has had a major impact on our economy with some businesses struggling to cope. If you are concerned about the impacts of the current situation on your business and/or its impacts to your businesses current/future lending I’d be happy to have a phone chat with you to help you get your head around things – no cost, no obligation.
Simply follow this link to my calendar to find a time that works for you. We’re all in this together and I’d be happy to help.
Alternatively you can also contact me by texting or calling 0431 177 605 or via our Contact Us page.