Solar Rebate for Businesses
Jumping on the solar energy bandwagon is an excellent move for businesses looking to reduce their electricity bills. However, finding the initial investment for this can pose a challenge, especially for the smaller players.
The Australian government has developed The Solar for Business Program to reduce the initial cost of installing an approved small-scale solar PV system up to 30kW. Solar rebates cover up to 50% of the cost of a solar system with a maximum of $3,500.
Solar benefits differ from state to state and are dependent on the size and type of systems installed and your business’s eligibility. This article covers the most common types of rebates available.
The Solar for Business Program is designed to support businesses, especially smaller businesses, and reduce the costs of installing solar systems.
This program is designed to help eligible businesses cut down on energy bills by reducing the upfront cost of installing an approved small-scale solar PV system with up to 30 kW of inverter capacity.
What does the solar rebate cover?
This government rebate covers up to 50% of the total cost of the solar system for businesses eligible. However, the maximum rebate is $3,500 of the total cost, plus the option of an interest-free loan.
Example: The total amount of the rebate is either 50% or $3,500 of the total cost of any approved solar system.
- If the cost of the approved solar system is $10,000 the rebate will be applied to $3,500, and your share will be $6,500;
- If the cost of the approved solar system is $4,000 the rebate will be applied at 50%, and your share will be $2,000.
Who is eligible?
In general, all entity types, even non-profit organisations and charities, can be eligible for solar rebates for business if some criteria are met.
- The business must have at least one employee, not the business owner, and less than 50 full-time equivalent employees;
- Non-residential premises operators;
- Operate from premises that are individually metered;
- Not previously received a Solar for Business rebate;
- A Solar-approved solar retailer must install your system;
- To establish a solar system with an inverter capacity size of up to 30kW.
Additional information
Both businesses that own the premises and those that rent the premises can apply for the solar rebates. However, the landlord of the business premises cannot apply for the rebate on a business’s behalf.
Another vital thing about eligibility is the time limit. The rebate is only available for installations that occur following the program opening for applications on 28 May 202. All solar systems installed prior will be considered ineligible for a rebate.
Interest-free loans
All business owners can apply for an interest-free loan to reduce costs. Loans offered start from $1,000 up to a maximum amount of $5,000 with an option of paying over 12 or 24 months or sooner in one lump sum.
The rebate and loan amounts will be deducted from the cost of your system, ensuring you only have to pay any outstanding balance once the system is installed.
Solar rebates for businesses by state
The benefits vary from state to state and are dependent on the factors such as the size and type of system installed and your business’s eligibility.
The table below gives brief information about which state offers a Solar for Businesses Program.
| State | Business Solar Rebate |
|---|---|
| Victoria | Yes |
| New South Wales | No |
| Queensland | No |
| South Australia | Yes (Only the city of Adelaide) |
| Northern Territory | Yes |
| Western Australia | No |
| Tasmania | No |
| Australian Capital Territory | Yes |
FAQ's
The application process is designed to be as simple as possible for businesses, using common verifiable documents that are readily available to owners.
Business owners must provide the following when applying:
- A quote from an approved solar retailer;
- Relevant contact details of the business representative;
- The business Australian Business Number (ABN);
- WorkCover Employer Number (WEN);
- Certified Rateable Remuneration
All businesses must operate from eligible properties determined by the Australian Valuation Property Classification Code (AVPCC).
Three main categories of business owners have been identified who are eligible to apply for a rebate.
- Owner Occupier – If you own the property in the same name as your business.
- Associated Entity – If your business’s name is different from the name of the properties that you own or control.
- Renter – You are renting the property and you are not associated with the entity.
Unfortunately no. Only business owners or a nominated representative from the applying business are allowed to apply for a Solar for Business rebate.
If your solar system is installed after 2009 you are not eligible for a Solar for Business rebate.
To fulfil this condition implies that your premises must be connected to the grid and have their own National Meter Identifier (NMI).
