Solar incentive for businesses in VIC
In Victoria, businesses can benefit from subsidised solar systems that, depending on the location and size of your business can provide great benefits. The system in Victoria is categorised under Small Scale (under 100kW) and Large Scale (over 100kW) systems.
Small-Scale Technology Certificates (STC’s)
Small scale (under 100kW) installations of solar systems come under the Small scale Technology Certificates scheme or STC’s. This provides an up front discount to the cost of going solar. This covers up to 50% of the value of the installation or a discount on the real value of the system.
A number of criteria must be met, this includes
Your installer must meet requirements stated here
- Be installed no more than 12 months prior to the creation of the certificates
- Meet Australian and New Zealand standards
- Use a Clean Energy Council accredited designer and installer and meet the Clean Energy Council design and install guidelines
- Comply with all local, state, territory and federal requirements
- Be classified as a ‘small-scale‘
How are STC’s calculated?
We have covered STC’s in other articles for residential solar systems. But, if you want to calculate an STC’s estimate, use the tool below.
Large-scale Generation Certificates
Larger installations or Large Scale (over 100kW) are classified differently, as Large-scale Generation Certificates (LGC’s. ) A very large system with a large capacity being run until 2030 can be eligible.
Both of these systems are running until 2030, with the amount of certificates released will be reduced.
Just liked with residential solar systems, commercial systems can be rewarded for exporting surplus power back to the grid. Your electricity retailer will pay your with a small deduction on your bill for each (kWh) of electricity you provide back. This will be in the range of 10 cents per kW hour. Ask your energy company to find our what your rate could be.
Tax instant asset write-off
There are a number of tax benefits at a federal level to consider. These include
- Instant asset write-off raised from $30,000 (with a turnover of less than 50 million) to $150,000 with a turnover of less than 500 million before 31 December 2020.
- Businesses to claim 50% of depreciation costs (no maximum threshold) if approved project is delivered by 30 June 2021
More on this can be found on the ato website here. While this is exciting, we recommend talking to your accountant or financial expert about your eligibility here.
For solar and environmental upgrades, low interest loans may be available to businesses in Victoria, under the Environmental Upgrade Finance (EUF) agreement.
The building owner may borrow money for environmental building upgrades through the local council rates system. This best suits those who own their business premises and intend to stay for the long term. More can be found out here
- Competitive fixed interested rates over the loan period
- Long term finance (20 years)
- No deposit
- Share costs with other tenants
- Transferable financing
If you want to find out more about Commercial Solar, make sure to click below to find out more. Or if you want to enquire with us, fill out the form below.