EV Archives | Smart Ease https://www.smartease.com.au/tag/ev/ Smarter payment solutions for smarter business Wed, 13 Dec 2023 05:59:51 +0000 en-US hourly 1 https://www.smartease.com.au/wp-content/uploads/2022/04/cropped-SMART-EASE-LOGOMARK-CIRCLE-COL-32x32.png EV Archives | Smart Ease https://www.smartease.com.au/tag/ev/ 32 32 What’s in the Federal Budget for solar businesses? https://www.smartease.com.au/federal-budget-for-solar/ Sun, 14 May 2023 23:52:38 +0000 https://www.smartease.com.au/?p=9118 The 2023 Australian Federal Budget brings good news for commercial solar installers, with new tax breaks and hiring incentives.

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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”.

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Contents

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:

  1. Businesses, organisations and individuals register themselves on the ERF website.
  2. They submit projects that help to reduce emissions to the ERF (must be done before the project starts).
  3. The Government purchases the resulting emissions reductions as Australian Carbon Credit Units (ACCUs).
  4. 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.

federal budget for 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 https://www.smartease.com.au/national-ev-strategy/ Mon, 01 May 2023 04:23:06 +0000 https://www.smartease.com.au/?p=8921 On 19 April, the Aus Govt launched the National EV Strategy. Get familiar with the various projects, schemes and funding initiatives to capitalise on this.

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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 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: 

  1. increase the supply of affordable and accessible EVs 
  2. encourage an increase in EV demand, and 
  3. 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: 

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. 

green loans

“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.  

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“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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