Commercial Solar Powered Solutons

Commercial Solar Solutions – For almost every Commercial business, the number 1 concern is rising energy costs and interruption of power supply.

In a competitive market, no business can afford down time. Generators may offer a solution, but is very costly and  cuts heavily into business profits. Commercial Solar Solutions are the solution.

With Solterra Cape Town’s solar energy systems, there is a solution for just about any situation, enabling you to take control of energy expenses and improve your margins, while reducing carbon emissions.

To find out how you can reduce your energy costs, call us for a free consultation.

How we work

We offer everything from ground mounted systems to combined on-roof solar systems. After studying your consumption profile, we design and install a bespoke solar system aligned with the needs of your business. Our hybrid solution guarantees ongoing supply even when there is load shedding and other supply interruptions.

Benefits of switching to solar power

As the cost of solar technology becomes more affordable, and the price of electricity continues to rise, more and more businesses are realizing the benefits of going solar. Currently, even in the case of large-scale solar energy systems, the capital invested has a ROI (return on investment) in as little as 5 to 7 years – in most cases even less.

With an operational lifespan of up to 25 years and potential ongoing monthly savings for up to 60 years subject to annual maintenance, solar energy competes with the expected lifespan of a power station. In fact, solar power is cheaper than grid power and your business can stabilise its long-term energy rates, protecting yourselves from inflation and Eskom’s guaranteed annual increases when it comes to your electricity costs.

The South African Revenue Services (SARS) offers an income tax incentive for businesses investing in machinery and plant such as wind generators and solar energy projects dedicated to the generation of electricity. This incentive allows for the depreciation of these assets over a three-year period at a 50:30:20 rate year-on-year respectively. The payback period is around 3 years. Photo-voltaic (PV) from January 2016 has a 100% Tax deduction for a period of up to 12 months.

One of the biggest benefits commercial establishments immediately experience with our Solar Energy Solutions, are a drastic drop or decrease in your monthly energy bills.

Our specialty are custom designed Photovoltaic Solutions for businesses of all sizes. We offer bespoke system design, installation, commission and maintenance, and web monitoring to track energy production and use.

To explore how you can save on energy costs, call us for a free consultation.

SARS information on Commercial PV Installations

COMMERCIAL SOLAR POWERED SOLUTIONS

SOLAR TAX INCENTIVE – ACCELERATED DEPRECIATION ON PV – (SARS SECTION 12B).

From 2016, businesses have a new incentive mechanism to take advantage of Solar PV and receive a tax benefit while saving on electricity costs. Specifically, this amendment allows for 100% of the cost of the system to be depreciated in the first year, providing an effective 28% saving on the purchase cost. This article will explain the new 12B provision and how it can be used by businesses considering commercial solar installations.

How Does Accelerated Depreciation Help?

28% of a PV system’s cost can be saved in year 1 through a reduced tax bill. This is achieved by recognizing 100% of the system’s price as a taxable cost in year 1, and therefore reducing the net tax payable by 28% (the corporate tax rate) of this amount. This in turn improves the return on investment of a system by as much as 38% and reduces the payback period significantly.

The Details – What Does Section 12B Actually Say?

Section 12B of the Income Tax Act of 2016 provides a remarkable benefit for commercial solar photo-voltaic systems under 1 megawatt (MW). For these systems, provision 12B provides for an accelerated depreciation allowance on the entire cost of the solar system – most simply defined as the cost of the system to the taxpayer, plus the cost of its installation – within the first year. The provision can also be applied to foundations or supporting structures that are deemed to be part of the solar PV asset.

Interestingly, the full allowance can be claimed even if the solar PV system is installed mid-year or only used for a portion of the year. However, it is not possible to claim this asset in multiple years; it is only applicable when the solar PV system is “brought into use for the first time by the taxpayer.”

This benefit also applies to systems purchased through finance agreements so long as the business is the first “owner” of the system.

Why Does SARS Provide Such a Generous Deduction?

Section 12B is meant to stimulate business investment into clean, renewable energy. It is very similar to many other tax provisions around the world, including the business Investment Tax Credit in the United States.

Why Invest in Solar PV as a Business?

Solar energy is extremely well-suited for businesses. Solar photo-voltaic (PV) panels produce power during the day – when it is needed most by commercial facilities – and many organizations have significant unused roof space, which can accommodate a large number of panels.

If you are looking to install a commercial solar PV system to reduce your firm’s energy bill, help preserve our environment, and take advantage of this significant tax incentive, Solterra is here to help! As soon as we receive word of your interest, one of our managers will come to your business and identify the solar PV system that best meets the needs of your organization. With our high-quality materials and certified installers, you can rest assured that your business is getting absolutely the best system available.

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  • Our Thermal Panel hardened glass tops have one of the highest efficiency ratings in terms of heating your water even during winter months.

We also install these as a 'retro-fit installation' to your existing geyser and convert that to solar if you cannot afford a complete system just yet.

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Learn about Commercial PV Taxation Incentive

Take a look at the Commercial PV Taxation incentive by the South African Revenue Service to learn more
CLICK HERE! - Commercial PV Taxation Incentive