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Tax Incentives for Solar and Battery Storage

The Government has announced an unprecedented range of tax incentives in it’s response to COVID-19 which means there has never been a better time to invest in Solar PV or Battery Storage.

The full range of incentives currently on offer are summarised below:

INSTANT ASSET WRITE-OFF

The instant asset write-off allows eligible business to claim an immediate deduction for the business portion of the cost of an asset.
The instant asset write-off can be used for multiple assets and both new and second-hand assets.

Threshold: amount of each asset is $150,000
Eligibility: available to businesses with an aggregated turnover of less than $500 million
Timing: for assets used or installed ready to use between 12 March 2020 until 30 June 2021 and purchased by 31 December 2020

For further information please refer to the ATO website.
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toyota solar power

Example: 100KW

System Price: $120,000
STC Rebate: $52,516
Total: $67,484
Tax Benefit: -$36,000

Payback before Instant Asset Write Off: 3.18 Yrs.
Payback after Instant Asset Write Off: 1.47 Yrs.

Assumptions:

1500kWh/kWp
STC Price: $38 per certificate
Electricity Offset: $0.15/Wp
Electricity Consumed: 100%
Company Tax Rate: 30%

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