May 2021 Victorian Government Solar for Business
The financial case for commercial solar is now compelling.
The Victorian Government announced a $3,500 rebate for solar installed by Victorian businesses from 1 May 2021.
Add to this the 2020 federal budget unlimited instant tax write off for any asset purchased and ready for use by 31 December 2022, electricity savings and GST savings, the financial incentive to install solar by Victorian businesses is now compelling.
Cash Flow Impact of solar
Considering all the incentives available, an SME in Victoria, installing solar from 1 May 2021, can now expect the following.
- 10kW solar, with no upfront cost, financed at $310 a month over 60 months, can expect to book a bottom-line, year 1, cash positive $8,754 in Melbourne and over $9,500 in Swan Hill or Mildura.
- 30kW solar, with no upfront cost, financed at $900 a month over 60 months can expect to book a bottom-line, year 1, cash positive $19,600 in Melbourne and over $21,000 in Swan Hill or Mildura.
Does my business qualify?
All employing businesses, excluding government organisations, are eligible for the Solar for Business rebate providing they meet the following eligibility criteria:
- Be the owner of a business which has less than 20 employees
- Operate from premises that are not considered residential
- Operate from premises that are individually metered
- Have their system installed by a Solar Victoria approved solar retailer as detailed on Solar Victoria’s website
- Install a solar system with a PV capacity size up to a maximum of 30kW, as detailed on the Solar Victoria approved product list
Eligible businesses will be able to apply for a small business rebate through the Solar Victoria portal from 1 May 2021.
Initially the program is limited to businesses where the business, or a related party, owns the premises. We expect this to expand and include leased premises after the program settles in.
For ‘nothing up front’ a finance solution is required.
If a Victorian business meets the requirements of the program, has been GST registered for two years, and has a reasonable credit score, they should automatically be approved for finance.
The window of opportunity is now!
The Victorian Government program is limited to 15,000 installations over three years.
The Australian Government tax benefit has been extended to 31 December 2022.
Interest rates are low and the value of STCs remains high.
If your Victorian business wants to install solar with no deposit and is prepared to install and settle by 31 December 2022, you could qualify to get the full Victorian Government rebate, receive the impact of tax savings to your bottom line straight away, and the bonus of ongoing electricity savings. In addition, you can take advantage of the value of STCs which reduce each January.
No cash down – savings on electricity – tax savings – GST benefit.
Call to get in touch with your local ASM Money representative to talk about the potential toady.
ASM Money Pty Ltd are not tax advisors and do not recommend any of the taxation strategies outlined in this document.
This document is based on the best available information as of 1 April 2021. Taxation regulations are continually changing. Before acting on this, or any tax item, ASM Money Pty Ltd recommends consulting your accountant or taxation advisor.
Written specifically for the commercial solar vendor and salesperson we build on the universal Emotional Intelligence tools introduced in the book “Selling to the 7 Emotional Buying Styles”.
In my ten years of experience selling commercial solar, business consulting and providing finance to the solar industry I have found solar businesses tend to be dominated by one emotional style.
In the commercial world, this style finds it difficult to understand and deal with the other six emotional styles commonly meet in the commercial world. After reading this book you will be able to pick your clients’ primary emotional style within 90 seconds, use practical tools to engage emotionally, start and influence conversations and decisions.