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Coronavirus Stimulus Package - Plan For The Future With Solar
Thursday, March 12, 2020
Today the Morrison Government has announced a Coronavirus Stimulus Package that provides targeted support across key areas of the economy as our country prepares for what Mr. Morrison called “...difficult months and quarters ahead…”
The warning is that this will be a challenging period for many organisations. As a business in the skilled trade sector, we were very keen to hear of the support provided for Apprentices knowing that everything helps. We are looking for ways to help your businesses save money and that will see immediate impacts in the proposed changes to the Instant Asset Write-off scheme which is now moving to $150,000.00 from $30,000.00.
Greenwood has put together a scenario to demonstrate how the changes can help ease the burden immediately, and supercharge savings for all businesses using a commercial PV solar system;
A company installs a 100kW rooftop PV system, which produces 380kWh per day, in Melbourne, at an average cost of 28¢ per kWh. Presuming the system is designed for self-consumption:
The yield would amount to an approximate savings of;
- $106 daily
- $3,192 monthly
- $38,942 annually
Assuming a 100kW PV solar system cost at $110,000.00 + GST.
If your business takes advantage of the revised $150k Instant Asset write off
( When assuming a 28% Company Tax Rate ):
- This would result in a $30,800 write off to the business given the example above.
- The result is almost $70,000 in first-year savings between electricity and tax savings
- Chattel Mortgages are applicable and could assist with a day 1 cash flow positive outcome.
This is one clear way a business can do their part for the economy whilst also seeing an immediate financial benefit to their bottom line. The added benefits to the environment are a bonus that coupled with the saving from the Solar System will pay dividends for years to come.
From the team at Greenwood