decarbonisation Archives | Smart Ease

What’s in the Federal Budget for solar businesses?

Sun, 14 May 2023 23:52:38 +0000

The 2023 Australian Federal Budget brings good news for commercial solar installers, as new tax breaks have been introduced to encourage businesses to invest in solar and energy-efficiency projects.

The 9 May announcements were welcomed by the Smart Energy Council, which has described the Budget as a “significant step in responding to climate change and positioning Australia as a renewables superpower”.

Small Business Energy Incentive
The ‘new’ Instant Asset Write-Off
Emissions Reduction Fund (ERF)
Hiring and training staff
Energy Bill Relief Fund for small businesses

Small Business Energy Incentive

The Small Business Energy Incentive is designed to promote energy efficiency among small businesses. It allows eligible SMEs to deduct an additional 20% of the cost of eligible depreciating assets that support electrification and energy efficiency in their tax return.

Who’s it for? Small businesses with annual turnover under $50 million qualify.
How does it work? Complimentary energy assessments are on offer to identify cost-saving opportunities. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.
What equipment does it cover? Upgrades and purchases of LED lighting, energy-efficient HVAC systems and refrigeration plus solar PV systems and batteries.
How to apply? Businesses can apply through registered service providers who assess eligibility, conduct energy assessments, assist with equipment selection, and help with claiming the incentive.

How will this benefit your commercial solar business?

This tax break makes adopting solar and other energy-efficiency and decarbonisation equipment a lot more affordable for businesses. When combined with a Smart Ease payment solution, it allows businesses to install a commercial solar system without spending a cent upfront – and enjoy a tax incentive at the same time.

It’s a no brainer!

There’s also the opportunity to become a registered service provider – stay tuned for more information on this.

The ‘New’ Instant Asset Write-Off (IAWO)

The Instant Asset Write-Off in its current form ends on 30 June 2023, but a scaled-back version has been announced from 1 July. Here are the new rules:

Who’s it for? Small businesses with an annual turnover of less than $10m.
What’s on offer? Businesses can deduct the entire cost of eligible assets that are purchased and first used between 1st July 2023 and 30th June 2024.
What equipment does it apply to? Business equipment costing less than $20,000. The threshold applies to each asset so businesses can buy multiple assets under this provision. Equipment costing more than $20,000 cannot be immediately deducted but can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that.

How will this benefit your commercial solar business?

For smaller projects under $20,000 value, customers will be able to write off the cost of the equipment in the year they buy and start using it. This allows businesses to reduce their tax liability immediately, which provides a cash flow advantage.

The $20,000 limit means the revised IAWO will suit lower value projects like smaller solar installs, upgrades, battery storage, HVAC equipment and EV charging infrastructure.

Emissions Reduction Fund (ERF)

The ERF is not new – it launched in 2014 – but it received a fresh funding injection in the 2023 Budget.

It works like this:

Businesses, organisations and individuals register themselves on the ERF website.
They submit projects that help to reduce emissions to the ERF (must be done before the project starts).
The Government purchases the resulting emissions reductions as Australian Carbon Credit Units (ACCUs).
These ACCUs can be traded, sold, or used to meet compliance obligations.

How will this benefit your commercial solar business?

The ERF gives businesses the chance to create a new revenue stream when they adopt commercial solar and storage. If this is something your customers are able to manage, it can be a bonus to the energy bill savings generated by switching to solar.

Hiring and training staff

A new five-year National Skills Agreement, which will launch in January 2024, was announced in the Budget. It includes:

Financial support for apprentices and employers, including a $10,000 living allowance for eligible apprentices.
An additional 300,000 fee-free TAFE and vocational education training places for apprentices in critical industries including clean energy.
Continuation of the New Energy Apprenticeship scheme, which includes Priority Wage Subsidy for eligible employers.

How will this benefit your commercial solar business?

Benefit from fee-free TAFE positions, wage subsidies for apprentices and further incentives for hiring apprentices from minority groups like women and First Nations Australians.

Energy Bill Relief Fund for small businesses

Designed for small businesses struggling with high energy costs, the Energy Bill Relief Fund provides a one-time payment to help with energy bills.

Who’s it for? Small businesses on a separately metered business tariff with their electricity retailer whose annual electricity consumption is below the threshold for their state or territory.
How much is on offer? Between $325 and $650 depending on state or territory.*
How to access? Businesses don’t need to apply – the rebate will be automatically applied to their energy bills if they meet the criteria.

How will this benefit your commercial solar business?

Small businesses remain eligible for this relief even after adopting solar, as the majority will still be purchasing energy from the grid.

The fact that energy bill relief has become a Budget priority means that businesses and organisations out there are hurting. This gives you an excellent conversation-starter with stalled or prospective prospects. By accessing the Energy Bill Relief fund rebate and installing solar and/or energy-efficiency equipment, businesses can maximise energy savings while doing their bit for the planet.

In summary, the 2023 Federal Budget in Australia is good news for commercial solar installers. Several new schemes and incentives will make it financially more appealing for businesses to adopt solar, storage and energy-efficiency equipment. This will increase demand for solar products and services as the race to decarbonise Australia accelerates.

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What the new National EV Strategy means for installers

Mon, 01 May 2023 04:23:06 +0000

On 19 April, the Australian Government announced its National Electric Vehicle Strategy (NEVS).

NEVS focuses on increasing the uptake of electric vehicles (EVs) to reduce emissions. It also presents significant opportunities for businesses supplying EV charging infrastructure.

We sat down with Carola Jonas, CEO & Founder of EV-charging experts Everty, to discuss the objectives and opportunities presented by NEVS.

JUMP AHEAD TO

National EV Strategy (NEVS) objectives
NEVS initiatives
Opportunities to watch for our Channel Partners
What’s missing from the NEVS?
What does all this mean for my business?

National EV Strategy objectives

The NEVS framework aims to get Australia’s road transport sector on a pathway to net zero emissions. Years of industry conversations – plus more than 300 responses from individual businesses, including Everty – and consultation with the EV Council have formed the backbone of the strategy.

It aims to:

increase the supply of affordable and accessible EVs
encourage an increase in EV demand, and
establish the resources, systems and infrastructure to enable rapid EV uptake.

NEVS initiatives

Big ticket items announced as part of the NEVS include:

a national network of EV chargers on major highways
increased focus on Government fleet purchasing, and
a national mapping tool to support investment in, and deployment of, EV-charging infrastructure.

The strategy also outlines initiatives to support battery recycling, infrastructure planning, apartment building design, and rolling out world-leading training for emergency services workers.

Opportunities to watch for our Channel Partners

Carola suggests some specific schemes and opportunities for our Channel Partners to keep an eye on:

The Driving the Nation Fund, which will provide $39.3m of funding to the National Roads and Motorists’ Association (NRMA). The NRMA will match these funds to build 117 fast EV chargers at sites across Australia’s national highways. The infrastructure will better connect towns and cities with populations of more than 10,000 people.
The Australian Renewable Energy Agency (ARENA) is backing the deployment, operation and management of charging infrastructure through a new $70m round of grants.

Now is also the time to get familiar with the various projects, schemes and funding initiatives on offer.

“There’s a lot of state and federal funding available,” notes Carola. “Businesses need to understand what this funding is to make the most of those opportunities.”

Here’s what to keep an eye on.

Skills & training

New Energy Apprenticeships and New Energy Skills Program will make it cheaper and easier to employ apprentices and to train new staff in the energy sector. This includes support payments to staff and wage subsidies to employers.

State & territory investments

State and territory EV infrastructure and charging investments, such as:

WA Government’s $22.9 million investment to install almost 100 charging stations at 49 locations, and
NSW’s EV destination charging grants to co-fund the purchase and installation of EV chargers in eligible regional NSW destinations.

Future Fuels and Vehicles Strategy (FFS)

Administered by ARENA, the FFS Strategy funnels funding to organisations that demonstrate that they’re transitioning to electric vehicles. The first funding round has now closed, but bookmark the Future Fuels Fund page to stay up to date with additional funding rounds.

What’s missing from the NEVS?

The most notable exclusion from the NEVS is the establishment of fuel efficiency standards, or emission standards. These standards exist in all other developed nations and their absence has damaged Australia’s appeal as a market for international EV manufacturers for years.

“The National EV Strategy is a good first step, but we can and must do more as a country. The most important thing to get right is immediately introducing fuel efficiency standards.”

– Carola Jonas, CEO & Founder, Everty

What does all this mean for my business?

The NEVS is great news for businesses that supply EV-charging infrastructure, which will benefit from increased demand as EVs become more widely adopted in Australia.

EV-charging infrastructure is fast becoming a ‘must have’ for business customers. Businesses with a view to future-proofing their operations are well advised to consider current and future charging needs at the same time as designing their solar and storage solutions.

PRO TIP! It’s more cost-effective to bundle services, so now is the time for solar businesses to get serious about focusing on this as a key offering. Broach the topic with your customers and recommend that they install EV chargers at the same time as solar power and storage.

“EV charger installation is not a one-time transaction with a customer. You can sell ongoing maintenance and upgrade of the infrastructure – and create a new revenue stream for the future.”

– Carola Jonas, CEO & Founder, Everty

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Green loans: what are they and how do they compare?

Mon, 23 Jan 2023 00:07:15 +0000

In recent years, green loans have rapidly risen from obscurity to become top-of-mind.

The benefits of decarbonisation – such as cheaper energy through renewables, positive brand implications, and keeping shareholders happy – have convinced most organisations of the need to act soon. Green loans and similar payment solutions (including our own) play a key role in this for small- to medium-sized organisations.

For organisations keen to reduce their footprint by adopting solar power and other technologies – without digging in to their savings – investigating green loans and related options is a wise move.

So, what are green loans, what alternatives exist, and what’s best for your organisation?

What are green loans?

Green loans were first introduced as a government initiative to encourage individuals (vs businesses) to install energy-saving home improvements.

Today, they’re also used in commercial settings as businesses seek to rapidly decarbonise their operations in an era of ESG and skyrocketing power prices.

In simple terms, a green loan is ‘a form of financing that enables borrowers to finance projects that have an environmental impact’.[1] The concept has existed under different names (including ‘green bonds’ and ‘green financing’) for around 15 years, but since 2018 they’ve been classified according to a specific set of principles. These are:

The use of funds. The use of the loan should be clearly described in the financial documents and offer clear, verifiable environmental benefits.
The process of evaluation and selection of projects. The borrower should clearly inform the lender of the sustainability objectives and how they determined that the project is eligible.
The management of funds. The amount of the green loan should be recorded in a specific account and be able to be tracked to ensure transparency and integrity.
Annual review. The borrower should show how the funds are being used on an annual basis to demonstrate they’re meeting objectives.[2]

How do green loans work for businesses?

When cash flow is inconsistent or capital is earmarked for other projects, green loans and similar products are one way for organisations to access technology like solar panels, EV chargers, batteries and energy-efficient lighting. These technologies allow organisations to reduce the amount of energy they source from the grid, often drastically, which can also reduce their monthly expenditure.

Interest rates for green loans vary depending on the provider, with some lenders advertising lower rates with proof of environmental impact. To qualify, businesses must meet a strict set of criteria and commit to ongoing reporting, as per the Green Loan Principles (see above).

“There is no company whose business model won’t be profoundly affected by the transition to a net zero economy.”

Larry Fink, CEO Blackrock

Due to the need to vet each application for its environmental value, green loans through banks can only be applied for in person or via the phone. Many major lenders only offer green loans to existing customers and only to individuals, not organisations. Due to these types of requirements, the maximum loan amount is often too low to be viable for businesses to use (for example, $20,000).

How do Smart Ease Payment Plans compare to green loans?

It’s important to note that while Smart Ease payment solutions are based on green-loan principles, they are not classified as green loans. Differences between green loans and Smart Ease payment solutions are mainly related to the strictness of criteria and the reporting requirements.

At Smart Ease, we solve the same problems as green loans do, but in a more flexible and business-friendly way. The most obvious and important difference between Smart Ease payment solutions and a green loan from a bank is in the paperwork – and the speed.

Our payment solutions are unique. They’re fast (it takes less than 5 minutes to apply), they’re 100% online and they can be used to fund a broad range of energy-efficiency technologies.

Most importantly, our payment solutions can only be accessed via our Accredited Channel Partners, which is how we know that we’re funding projects with a positive environmental impact. This means you’re able to apply online quickly, with less paperwork and hassle than you’re likely to encounter with traditional lenders.

Once your equipment is installed and your project is complete, there is no reporting required to demonstrate the environmental impact of your loan.

*Subject to credit criteria and approval

Green loans and their equivalents are here to stay. As decarbonisation continues across all sectors, expect this option to be more commonly used by organisations of all sizes to achieve their green goals.

Smart Ease customers love the win-win of reducing their energy expenditure and their carbon footprint at the same time – and they love the accessibility of our payment solutions for all organisations, regardless of their bank or their reporting capacity.

We know you will too.

Enquire about a Smart Ease Payment Plan today

[1] Climate Explainer: Green Loans (worldbank.org), sourced 16 Jan 2023

[2] As above, sourced 16 Jan 2023

[3] Green Financing: A Look at the History – Bechtel, sourced 16 Jan 2023

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10 decarbonisation good news stories from 2022

Fri, 09 Dec 2022 04:29:31 +0000

There’s no doubt 2022 brought with it a unique set of challenges and shocks. With geopolitical instability, government changes, lingering pandemic effects and rises in inflation, interest and the cost of living, there was enough bad news to deflate even the most determined optimist.

Believe it or not, there were a lot of good news stories too. Head into the holiday season with a smile on your face thanks to this round-up of our 10 favourite good news stories from the world of decarbonisation.

1. New builds in EU countries will now have to have solar panels

The ongoing war in Ukraine has seen European countries turning away from Russian gas in droves. This has rapidly escalated the switch to renewable energy, with plans for half of the EU’s energy to come from renewables by 2030.

A new ‘solar rooftop initiative’ has made it mandatory for all new buildings to have solar panels by 2029, which is expected to double the amount of solar energy being produced.

2. Queensland windfarm to provide enough power for 1.4m homes with new $2bn investment

Closer to home, one of Australia’s biggest windfarms announced in November that it will double its capacity to 2,000MW. The extension will enable the farm to supply enough power for 1.4m homes, hastening Queensland’s exit from fossil fuel−sourced electricity.

The windfarm is owned by Spain’s Acciona Energia and is found within the MacIntyre Precinct, a region about 200km south-west of Brisbane which is being developed in partnership with CleanCo, the Queensland government’s renewable energy arm.

3. Coles stores in Queensland will use 100% renewable energy from 2025

Coles supermarkets in Queensland signed a major 10-year renewable energy deal in September 2022. The retail giant committed to using renewable energy to power more than 90% of its sites across the state from July 2022.

By 2025, the nation’s 12th-largest electricity user plans to use 100% renewable energy in its operations. To achieve this, it has signed an agreement with the 228MW Lal Lal Wind Farm in Victoria.

4. Renewable jobs rise by 700,000 to nearly 13 million worldwide

In May the UN announced that worldwide employment in the renewable energy sector reached 12.7 million last year, a jump of 700,000 new jobs in just 12 months. This is despite ongoing COVID-19 interruptions and the growing energy crisis.

Solar was the fastest-growing sector, supplying 4.3 million jobs in 2021 − which was more than one third of the current global workforce in renewable energy. Data also showed that female participation increased in the sector.

5. Costs of renewable energy have dropped much faster than expected

In stark contrast to the continued increase in the cost of fossil fuel−sourced energy, the costs of renewable energy continued to decline dramatically over the past year.

According to the Human Development Report Office (HDRO), prices of large-scale solar photovoltaics decreased by 89% in the decade to 2019, while lithium-ion batteries became 97% cheaper throughout the same period.

These price decreases took experts by surprise. As the HDRO notes, “contrary to the projected average annual cost reduction… solar photovoltaics costs declined by 15% a year.”

6. A new world record for global investment in clean energy

A report from Bloomberg NEF showed that countries across the planet are pouring record-breaking amounts of money into renewable energy. Over $226 billion was spent on clean energy development in Q1 alone − an 11% increase year on year.

Once again, solar led the way with a 33% jump in investment, while wind investments increased by 18% globally. China, the United States, and Japan were among the biggest backers of these new projects as they transition from fossil fuel−sources towards clean, renewable energy.

7. Australian government invests in ramping up EV uptake

The Australian government passed a bill in November to make popular electric and low-emissions vehicles more affordable through tax exemptions. Its new Electric Car Discount policy will see discounts across all EVs up to the Luxury Car Tax value of $77,565.

The policy aims to save motorists and businesses thousands by exempting eligible low-emissions vehicles from import charges and fringe benefits tax. Lower-cost models, such as the Nissan Leaf, will be cheaper by around $2,000 for individuals and $9,000 for fleet managers.

8. Solar microgrids are keeping Ukraine’s hospitals running

Solar microgrids* have proven a game-changer in conflict and disaster-relief situations globally. Unlike diesel generators, which are traditionally used to provide emergency backup power, solar microgrids can produce and store energy independently from the main grid. They also don’t rely on access to fossil fuels, which are often in short supply.

More than two dozen 2kWh portable solar battery systems have been shipped to 13 hospitals in cities all over Ukraine, where they are helping save lives in areas under heavy bombardment.

9. Construction begins on the world’s biggest wind farm

Construction has begun on Dogger Bank Wind Farm, the world’s largest offshore wind farm. Located off the east coast of England in the North Sea, the 1,700km² project covers an area larger than Greater London and will create more than 300 jobs.

When fully operational in 2026, Dogger Bank Wind Farm will produce enough renewable electricity to supply 5% of UK’s demand. It will power around five million homes each year and increase the UK’s renewables capacity from 0.6GW to up to16GW by 2030.

10. Decarbonisation tech instantly converts CO₂ to solid carbon

Researchers at Melbourne’s RMIT announced that they’ve developed technology that instantly captures CO₂ in the atmosphere and converts it to solid carbon.

The smart and super-efficient new technology is designed to be integrated smoothly into existing industrial processes, enabling heavy industries like cement and steel production to easily capture and store the carbon they emit.

*Energy systems that distribute energy independently from the main power grid.

Photo by Pagie Page on Unsplash

Ukraine image from KyivPost

The post 10 decarbonisation good news stories from 2022 appeared first on Smart Ease.

decarbonisation Archives | Smart Ease

What’s in the Federal Budget for solar businesses?

Contents

Small Business Energy Incentive

How will this benefit your commercial solar business?

The ‘New’ Instant Asset Write-Off (IAWO)

How will this benefit your commercial solar business?

Emissions Reduction Fund (ERF)

How will this benefit your commercial solar business?

Hiring and training staff

How will this benefit your commercial solar business?

Energy Bill Relief Fund for small businesses

How will this benefit your commercial solar business?

What the new National EV Strategy means for installers

JUMP AHEAD TO

National EV Strategy objectives

NEVS initiatives

Opportunities to watch for our Channel Partners

What’s missing from the NEVS?

What does all this mean for my business?

Green loans: what are they and how do they compare?

What are green loans?

How do green loans work for businesses?

How do Smart Ease Payment Plans compare to green loans?

Enquire about a Smart Ease Payment Plan today

10 decarbonisation good news stories from 2022

1. New builds in EU countries will now have to have solar panels

2. Queensland windfarm to provide enough power for 1.4m homes with new $2bn investment

3. Coles stores in Queensland will use 100% renewable energy from 2025

4. Renewable jobs rise by 700,000 to nearly 13 million worldwide

5. Costs of renewable energy have dropped much faster than expected

6. A new world record for global investment in clean energy

7. Australian government invests in ramping up EV uptake

8. Solar microgrids are keeping Ukraine’s hospitals running

9. Construction begins on the world’s biggest wind farm

10. Decarbonisation tech instantly converts CO₂ to solid carbon