Solar Rebate for Businesses in Australia
Long-term profitability is the ultimate business goal of 9/10 organisations. And the best way to achieve this goal is to devise and implement strategies that focus on cutting business cost and optimizing organisational operations.
Over the last five years the biggest challenge that Australian based businesses had to face from achieving their ultimate business goal was the ever increasing rise in energy prices. This challenge still continues to hang on businesses like a threat.
The fuel prices have risen by 40% which has made it quite difficult for both small and large organisations to run their businesses at an optimal level and achieve forecasted business profits.
The Vicious Cycle
The sharp increase in energy prices has led to huge electricity bills which have increased the cost of doing business dramatically and as it is a financial expense, it has reduced business profits of several companies across industry verticals by a significant percentage.
Solar Power- The Solution
Ever since 2011, Australian government has been encouraging companies to install solar power systems in their business landscape to combat the rising energy fuel prices. Although not all many businesses have installed solar power systems to produce electricity.. Businesses that have deployed solar energy generating systems are finding it quite beneficial.
The common reason behind many companies who have not moved to solar power was the huge investment, installation and maintenance cost they incurred. Therefore to promote and facilitate solar power installation, the Australian government announced solar rebate and incentive programs.
The solar rebate program is designed to help businesses become environmentally responsible by reducing the greenhouse gas impact and installing commercial solar energy generating power. Solar energy creates clean and renewable energy that helps lower operational energy cost. Solar energy is environmental friendly and can be replenished easily. Here is a look at the solar rebate programs offered by the Australian government
Solar Credits Program
This program is for grids connect and off grid solar and wind power installations only. This solar rebate program offers up-front subsidy on solar power system purchase to businesses..
Before December 2012, the size of the installation system mattered in terms of rebate support but not anymore. The solar rebate credit program offers substantial savings for companies on grid connect solar energy power generating systems.
Tax Break for Small Businesses
Solar rebates offered by the Australian government to businesses have helped them consider investing in solar power system. These rebates help lowering the cost of installation of solar energy system. One such rebate includes tax break for small businesses. The government of Australia has decided to start solar rebate tax break for small businesses from 2012-13 tax year. This solar rebate program features writing of a value worth of assets including the solar power system. This tax reform exclusively applies for businesses that have a low turnover.This solar rebate in the form of tax break is considered to have a positive impact on small businesses who fear the cost of solar power installation into their landscape. The solar power system investment will be fruitful for such businesses now as the system will help reduce business energy expenses. .
Renewable Energy Certificates
These renewable energy certificates are a type of solar rebate. Through these you can buy solar hot water, panels and power systems and receive cash back on your purchase. This is done by selling your renewable energy certificate at the point of purchase.
Feed in Tariffs
This is solar rebate program offers businesses premium rate above prevailing market rate for the electricity that the solar power grid produces. However, this solar rebate reform is still under consideration for implementation at the national level across Australia, it is currently functional in each state in its own separate limitations. Therefore the rates and condition of this solar rebate program/reform varies from state to state.
Clean Energy Future Plan
In February 2012, the Australian Federal government implemented the clean energy future plan. This program is designed to provide transitional assistance to Australian businesses and industry. This is a 1.2 million dollar incentive program like the above discussed solar rebate programs. The program focuses on fossil fuel emission reduction and investment in solar/clean energy. It promotes and encourages businesses to invest in solar systems at a heavy solar rebate discounted price of as much as 50%. This means businesses can now get solar power systems installed at half the actual price translating the payback period to 3- 7 years depending on the solar power systems size and present electricity rates.
Get Solar Power System from the Best in the Industry
With many opportunities and rebates there’s no better time to switch to solar. Choose Australia’s largest True Value Solar for tailored business solutions to meet you business needs.