Why Business and Property Owners Should be Investing in Energy Efficiency Equipment
Government Incentive for Businesses and Property Owners
Recently it has been announced by the Government, under the Instant Asset Write-Off Scheme that businesses will be eligible for unlimited, immediate tax deductions for energy efficiency purchases. Previously, limits for businesses only extended up to $150000.
With this change, the government is allowing organisations to claim losses from previous financial years dating back to 2018 and later. This is applicable for companies with revenue under $5 billion, with the option for some to make unlimited claims up until the 30th of June 2022.
As a business owner, property owner, or even as a tenant, you can make the most of this available incentive to cut your electricity bill. Here’s how.
- Take advantage of the unlimited tax deductions for small to medium-sized businesses
- Allow your solar to become an additional income by decreasing your electricity spend with the same usage consumption
- Increase your rental income by adding value to your property
- Claim your renewable energy as a tax-deductible investment
How you will benefit after purchasing energy efficiency equipment
As a Property owner
As a property owner, you will benefit from the government incentive by installing solar on your rental property, making the most of your roof space and adding value and appeal for current and future tenants. This will additionally create an opportunity to increase the cost of rent as costs in electricity will be reduced. The costs of your installation will be covered quickly by the rent paid by the tenant.
You will receive the full benefits of the solar rebates, on top of the instant asset write off the scheme. With this government assistance as well as low rate finance terms, your overall costs will be largely reduced.
As a business owner
With the recent impacts of Coronavirus, it has become more important than ever to future proof your business. By installing solar, as a business owner, you will be able to cut electricity bills with power correction, solar, lighting and other efficiency equipment. You will also be able to claim tax deductions for equipment and solar installation while increasing the long term value of your business. The large concessions on your tax provide a risk-free strategy when investing in renewable energy. Once your system has been installed, deductions can be claimed instantly.
As a tenant
While you may not think you could benefit from these incentives as a tenant when, in fact, you can!
If you are a long term tenant seeking ways to cut costs, you can negotiate with your landlord using the ‘split incentives‘ initiative. This means costs between the tenant and landlord are shared for mutual benefits. After installing solar, tenants will see lower electricity costs for the remainder of the lease.
IE Solar has partnered with Verdia, a business that helps finance large energy projects and energy efficiency services for other businesses. Verdia is able to assist with installing solar without expensive upfront costs, allowing for you to claim tax deductions while you are reaping the benefits of your solar system.
open solar and energy ease
Open Solar, our solar proposal provider has announced their newest finance integration for commercial solar system with Energy Ease. Energy Ease helps to structure payment plans in simple agreement in under 5 minutes, according to Open Solar.
“Many businesses and organisations don’t realise that getting solar equipment on a payment plan can be a cash flow positive proposition immediately… Once a solar system is installed, the grid-sourced electricity bill drops significantly. Even when you add the monthly solar equipment payments, the overall cost is often less than the business’s current grid-sourced energy bill,” said Guy Olian, CEO of Energy Ease, quoted from Open Solar.
As a partner of IE Solar, this integration will be an effective one that will assist businesses to ensure their purchasing process with energy efficiency equipment is as easy as possible.