Asset Write-off Extended
In recent years the Federal Government has frequently increased the instant asset write-off before tax time on 30th June.
The Fed Govt has extended the $150,000 new asset write off to 31 December 2020. This means that eligible businesses can claim an immediate lump sum tax deduction on the Solar asset cost.
These eligible businesses are able to deduct 50 per cent of the cost of a solar system on installation, with existing depreciation rules applying to the balance of the asset’s cost.View the Australian Government Treasury website for further details.
One of the big booming areas right now in solar energy is commercial solar because in a lot of cases large commercial buildings have seen a high increase in electricity cost.
I have seen owners of smaller manufacturing businesses being very upset because their profit is literally sucked up by the extra electricity prices.
But you've got to be very very careful because in commercial solar space usually it's all about ROI and the lowest cost. And so a lot of very cheap panels and even some not so crash hot inverter solutions have moved into that channel.
My strong advice to people is as soon as somebody offers you a tier one panel don't believe that means anything about the quality of the panel.
As soon as somebody gives you a 25-year performance warranty please be aware that it's very difficult to claim those warranties.So a lot of times you hear tier 1 and 25 years performance in solar and you think you're sitting safe.
The truth is you are not. If a company pushes you into a product just with those two points then be careful and actually look for quality solar and do your research.
LG Solar is picked in the commercial space as the key panel when people know that they're going to be in that business or in that factory for a long time.
Let's say they've done a new roof at that point in time. The 25 year product replacement warranty by LG including labour sets us apart from many of the other panels.
The benefit is also that if you look at the levelled cost of the system and you do the calculations, often the kilowatt hour with an LG solar panel will be one of the best outcomes you can get. So don't look just at ROI. It's great if I get a four year return on investment, but what happens if I don't want to just get the system for three or four years.
You want a commercial solar system where you have a twenty five year product replacement warranty on the LG panel because that means long term you've got a great asset.
Finally if you sell that business, sell that building you've got an LG panel on there with a transferable warranty you can advertise that I've got another 15 year warranty on that panel guaranteed by LG in Australia the biggest consumer brand in solar.
And finally we also pay for the labour and a lot of the cheaper panels if it ever needs to be replaced you will have to put your hand in your pocket for labour. We don't do that.
So thank you very much for joining us here at the LG Energy website. We have frequently asked questions and all the answers.We have beginners guides, videos from dealers we have output calculators so you can actually see what happens in your area with the solar system how much it will generate so please go onto the website do your research if you're looking into solar LG is the way to go.
Does solar power make sense for businesses?
In a commercial system, even more than for residential systems it is important to choose quality solar panels and inverters, as the amounts of money involved are significantly larger than for small residential solar systems.
If cheap panels or cheap inverters fail, if panel manufacturers go out of business or if the panel performs poorly - in all of these circumstances the commercial solar system owner is losing electricity, pays the price and is likely to be out of pocket.
The quality of the warranty and the warranty fine print are also very important for large scale systems. For example, how is the output of the system guaranteed?
Is the labour component for changing a panel should it be faulty be covered by the client, the installer or the panel manufacturer?
Make sure you get the answers to all key questions in writing from the installers and the component manufacturers.
The 1st step for any customer exploring commercial solar opportunities is to contact an experienced installer and have the roof suitability, return on investment rate and connection to the grid issues examined.Feel free to contact any of the authorised LG solar dealer network installers.
LG Commercial Solar - Case Study Summary
LG Solar has won many significant commercial projects across Australia and New Zealand, helping organisations across a wide variety of industries with their electricity costs and sustainability. Please read our commercial case study summary to find out more.
Download our case study pdf for more details
Why choose LG Solar Panels?
Not all solar panels are built the same. When you purchase solar panels from LG Solar you are investing in a product backed by years of experience and manufactured with the help of stringent research and testing standards.
In Australia, while there are by late 2013 over one million residential solar systems in place, the commercial solar update has been somewhat slower, even though for businesses where solar generation and energy consumption patterns are relatively matched, a payback of less than for residential systems can be achieved for quality solar systems.
One of the key considerations for ROI is the price for electricity, which the potential commercial solar system customer is paying. If the electricity consumption is enormous e.g. for a large printing company and therefore they only pay 3-5 cents per kWh, then it will be hard for solar to achieve an excellent pay pack.
On the other hand should the business be a car wash or a medical clinic or a restaurant with long opening hours and a relatively high electricity cost per kWh then solar system paybacks can become very attractive.
In a commercial system, even more than for residential systems it is important to choose quality panels and inverters, as the amounts of money involved are significantly larger than for small residential solar systems. If cheap panels or cheap inverters fail, if panel manufacturers go out of business or if the panel performs poorly - in all of these circumstances the commercial solar system owner is losing electricity, pays the price and is likely to be out of pocket.Read more
LG Panels are perfectly suitable for solar projects. LG solar panels have been selected for many large commercial projects worldwide and also in Australia.Please have a look at our commercial solar gallery section and the commercial solar reference document for some samples.
Commercial solar is now on the tipping point in Australia, where the payback has come down to somewhere between 4 and 7 years, depending on system size, location etc. Solar power for commercial applications/businesses is expected to increase dramatically over the next few years, as the financial returns are now very attractive and more business owners discover the benefits.Contact our LG authorised dealers for a quote in regards to larger scale commercial solar systems.