It was announced that the deeming period for solar rebates will be reduced from the 31st December 2016.
Do solar rebate cuts sound familiar?
Many people recall when the introductory feed-in tariffs were initially set at 66c/kWh for early solar adopters. Many of these customers still generate thousands of dollars a year in revenue and will continue to until 2024. The ones that delayed their PV purchase, today receive 5-8c/kWh for exactly the same electricity.
Similarly, the businesses that have already implemented solar to reduce costs have enjoyed solar rebates based on a 15-year production period.
What’s happening to the rebates?
From 1st January 2018, solar rebates will be determined on a 13-year period. This means thousands of dollars can be cut for an average commercial solar installation, making it more expensive for businesses, and pushing out payback times.
This will be the case every single year with rebates reducing to $0 by 2030.
What else is making this the perfect solar storm?
In addition, the Australian wholesale electricity spot price has jumped by more than 40% in the last 12 months, and close to 80% in Victoria alone.
Bill shock is a term used when the cost of power jumps so rapidly that companies are simply unable to fund their electricity expenses from existing cash flow and can only pay their bills by taking money out of other essential areas of their business.
Commercial solar provides stability in a world where the cost of power can skyrocket overnight.
Businesses that act now will reap the benefits of the full-term rebates, as well as hedging against increase power prices.
If you think solar might be viable for your business, get in touch today.
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