A new green asset finance solution on offer from the Commonwealth Bank of Australia (CBA) for businesses is providing a discount of up to 1 per cent off the standard rate for qualifying equipment.
CBA’s Green Vehicle and Equipment Finance is now available for assets including:
- Electric cars, trucks and buses
- EV charging equipment and batteries
- Electric or hydrogen machinery and engines
- LED lighting projects
- Solar, wind and hydro powered equipment including solar panel installations
“These new offerings enable businesses to transition their fleets and equipment to the latest, best-in-class sustainability options such as electric vehicles and green equipment,” said CBA General Manager Asset Finance, Chris Moldrich.
Mr. Moldrich said up to 100 per cent of the purchase price of eligible assets may be covered under the finance.
“There is a range of terms to suit different cash flow needs and the ability to use the purchased equipment as security for the loan also enables businesses to free up their working capital for other purposes,” he stated.
CBA promises “no hidden charges or surprises” (aside from a one-off documentation fee). Further information on the Commonwealth Bank’s offer can be found here.
It’s great to see Australia’s financial institutions getting behind supporting the uptake of clean and renewable energy technologies by businesses. CBA is not the only bank to do this, and it’s well worth shopping around to see what sort of incentives are on offer.
.. and speaking of incentives.
Tax Incentive Deadline Looms
Businesses really need to get cracking on getting solar installed if they wish to take advantage of an important Federal Government tax incentive that ends very soon.
In the tax system, solar power installations are generally considered depreciating assets with an effective life of 20 years. But currently, businesses with an aggregated turnover of less than $5 billion can fully expense eligible items (including solar power systems) in the year the asset was first used, or at least installed ready for use.
This initiative expires 30 June 2023.
There can be a bit involved with organising a commercial solar installation, and with just under 2.5 months to go businesses should move very quickly on arranging an install after first consulting their accountant/tax agent. The very important point to remember is in order to take advantage of this tax incentive, the system must be installed and ready for use by June 30 this year.
Finding a (good) solar installer can be time-consuming and confusing. SolarQuotes can help here by putting businesses into contact with trusted commercial solar installers via the SQ quoting system.
Another incentive well worth mentioning is the hugely popular “solar rebate”, which also applies to commercial PV installations. In practice, this is actually an up-front discount on the purchase of a system up to 100kW capacity that can knock tens of thousands of dollars off the cost.
While the solar rebate doesn’t have such tight timelines involved as the tax incentive, it is gradually being phased out; with a reduction on January 1 each year.
When it comes to tackling rising energy costs and assuming a business has a suitable rooftop, solar power really is a no-brainer move – particularly where a business is operating during daylight hours. With various incentives and discounted finance available these days, it’s not so much a case of whether a business can afford to go solar; but more whether it can afford not to.
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