SMEs Incentivised to go Clean and Green Before June 30

Thanks to the Australian Government’s Instant Asset Write-Off (IAWO) scheme, small businesses can invest in renewable energy solutions sooner to reduce energy costs and improve business sustainability – all while improving the bottom line. 

What do I need to know about the Instant Asset Write-Off (IAWO) scheme? 

Small businesses with an annual turnover of less than $10 million have until 30 June 2025 to deduct the full cost of eligible assets up to a certain threshold. The good news? Assets can include solar panels, inverters and battery storage, giving small businesses the opportunity to integrate solutions that will lower their energy bills sooner. The deductions can be applied for an asset in the year it is first used or installed and ready for use. Find out how to claim and how to apply. 

Business benefits of investing in solar and battery systems  

1. Tax Deduction: Reduce the amount of tax paid by claiming the full cost of the eligible solar and battery installations. 

2. Environmental Impact: Shifting to clean, reliable energy sooner helps reduce carbon emissions and draws energy from cleaner, greener sources. 

3. Energy Savings: Renewable energy is the cheapest form of energy, so using solar energy and battery storage to run business operations means lower energy bills in the long-run and better business outcomes. 

Next steps to make the most of the IAWO before 30 June 2025 

1. Check Eligibility: Find out whether your business meets the turnover and other eligibility criteria. 

2. Contact a solar and battery specialist: Speak with a solar and battery specialist, such as Nectr, to identify suitable solar and battery systems that fall under the $20,000 threshold and to help maximise the benefits of shifting to renewable energy. 

3. Start the process: Ensure assets are installed and ready for use before 30 June 2025. 

Research reveals that 34% of small businesses admit they are facing financial strain to pay energy bills, and almost half admit concern about paying future energy bills. 

But, around 11% of small businesses say they want to install solar in the next 12 months and 10% intend to purchase a battery. Electrification is also on the rise, with 27% of small businesses seriously considering switching to electric power. 

As more small businesses learn about the benefits of switching to renewable energy to power their day-to-day operations, incentives such as the Instant Asset Write-Off scheme present a strong business case to make the move. 

Nectr is helping small to medium businesses navigate the IAWO scheme to install solar and battery. Find out more by speaking with a Nectr solar and battery business specialist.