The sun is one of the biggest assets we have in Queensland, especially when it comes to running a small business. Whether you’re a small or large business owner, guaranteed your income is greatly impacted by the weather, which is just another reason to harness its powers.
Installing a solar power system for your business is not only a way of saving the environment, it will save you money.
Big Sky Energy business customers are already enjoying the benefits of solar power, including:
• Reduced electricity costs (and increased bottom line)
• Hedging against future electricity price rises
• Reduced environmental footprint
• Possible marketing advantages
• Possible tax advantages.
Here is how it could work for your business:
If your business’s monthly electricity bill is around $2,000 to $5,000, you could save in excess of $7,000 per year in electricity costs by installing a solar system.
The Queensland Small Business Electricity Tariff
In Queensland, small to medium businesses are generally charged for their electricity in one of two ways:
– A flat rate tariff
This is usually for businesses consuming less than 100-megawatt hours (MWh) per year. You may be charged either at one flat rate all day, or two flat rates: one for the day and another for nights and weekends. In addition to your kilowatt hour (kWh) charge you’ll also have a daily fixed charge.
– A demand tariff or capacity tariff
This is usually for businesses consuming more than 100MWh per year. Your business is charged based on the maximum amount of energy used at any one moment. In addition you will also have a daily fixed charge and a charge per kWh of energy you use.
When you install solar, and your business’s use of power is less than 100-Mwh a year, you will be reclassified from a ‘large customer’ to ‘small customer’ by your local network operator.
As a small customer, you will be billed on a flat rate tariff, not a demand tariff. While a flat rate tariff is higher per kWh, you will no longer pay demand charges, which will greatly save on your energy bills.
Switching your company on to solar power can be even more cost effective if you’re able to access any of the grants, rebates and other finance options available.
Renewable Energy Certificates (RECs) are a tradable commodity attached to eligible installations of solar power systems. It’s an umbrella term referring to Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs).
On Budget Night, May 12, 2015, The Treasurer announced businesses with an annual turnover of under $2 million would be able to claim immediate tax deductions on sub-$20,000 purchases up until June 30, 2017, rather than having to claim those purchases as deductions spread over several years. Those interested in using this option to acquire a solar power system should first consult their accountant.