No matter what type of facility you use, there are tax benefits for financing Eco Energy assets for business purposes. Our most popular options are:
ELA – The Ecolease Agreement allows you to rent the equipment for a fixed monthly payment, and own the equipment at the end of term for two additional monthly repayments.
ELA payments are 100% tax deductible when used for business purposes, allowing you to write off the cost of the asset over the finance term. Typically an ELA will run for anywhere between three and seven years.
Please note that new accounting standards apply in relation to the tax treatment of rental agreements. Please consult your accountant for the right finance product for you.
Chattel Mortgage – Is a commercial loan whereby the asset (known as a chattel) is used as the loan security.
Rather than the repayments being tax deductible, you claim depreciation and interest charges as your tax deduction. This generally means you write-off the asset at a slower pace than if you rent the asset (as above).
However, for assets costing up to $30,000 you may also be eligible for the Government Instant Asset Write-Off benefit. This enables you to write-off the full amount within this financial year. Please consult your accountant for the right finance product for you.
Yes you can. In some instances we may need to check that your tenancy agreement runs for longer than the finance term.
No, most of our clients fit the no-financials approval criteria. Talk with our team to learn more.
The interest rate varies depending on a number of things, including the $ amount of the system being financed, and other factors specific to your business.
We can provide quotes on request, or check out our calculator to see what your repayments are.
Small-scale Technology Certificates (STCs).
STCs are part of the Federal Government’s Renewable Energy Target scheme. This scheme gives Australians a financial incentive to install renewable energy systems. You can generate STCs with an eligible solar power system (<100kW).
Each STC has a market value. The larger the capacity of your system, the more STCs are created. In most cases for commercial sized systems, the incentive value can be several thousands of dollars.
Most people give STCs to their supplier in return for a discount on the cost of their system. The supplier usually sells them on to an energy supplier saving you the hassle of selling them separately.
Alternatively, you can also sell your STCs on the market. Either way, you’ll receive money to reduce the cost of your system.
Large-scale Generation Certificates (LGCs).
LGCs are applicable when a system is 100kW and over. To put this into perspective the average residential solar power system size is 5kW, (or around 20 panels), a 30kW system for most SME commercial businesses would be up to about 100 panels.
Typically 100kW systems are installed on heavy power consuming businesses. If you go over 100 kW, you are no longer eligible to claim the STC “rebate”. LGCs are calculated on how much energy the system actually generates and the price of certificates fluctuate with supply and demand.