Northmore Gordon has again registered VEECs for a Solar PV installation, completing the first 2 projects in as many weeks. This time for the Waverley Motor Group at their Mulgrave Showroom and Service Centre.
The 330kW of additional capacity installed at the site provided green energy to lighting, HVAC, and IT equipment in the dealership, as well as machinery used in the workshop. The VEU program can credit any projects that save electricity or gas from the grid, so this site with a high level of self-consumption is suited to capitalise on the value from the Project Based methodology.
While export of excess solar generation is allowed in the program, it can’t be counted in the energy savings, meaning sites that have 6 or 7-day per week operations, have high daytime loads, or are able to shift loads into the solar generation curve – colds storage, retail, warehousing, and manufacturing – are able to maximise the value from participating in the VEU program over the traditional approach of claiming LGCs for the renewable generation. The added bonus of using the VEU program is that the Federal Government carbon account rules allow keeping the green power credentials of your project towards your corporate sustainability goals.
“Solar VEECs now cover well over 40% of the cost of a large-scale solar system; it’s very compelling. Even businesses excluded on the VEU SAP list would benefit opting in. They’d reduce their power consumption (and hence their VEU liabilty) and gaining access to large reductions in the capital cost of the solar system. Add 30% back from full depreciation in the first financial year to > 40% covered and it’s a no brainer. With the full capital expensing* likely to be extended to June 2023 companies should be doing this now to ensure systems are fully commissioned by then”
Hamish McGovern – Northmore Gordon, Group Commercial Director
With the VEEC price continuing to hit all-time highs, the solar PBA approach can yield 3 times the value of LGCs in net present value, while also bringing forward the incentive cash flow in 12 to 15 months from the commissioning of the system. The announcement in last year’s Federal Budget also allows businesses to fully deduct capital equipment purchases that are in operation by June 2022, further improving the project ROI. The additional benefit of using measurement and verification is that your saving are verified against an internationally recognised standard so you can be certain that the saving you have paid for have been achieve.
Talk to Northmore Gordon today to take advantage of the Victorian Energy Upgrades program – the leaders in PBA VEEC creation.
Sources: *ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/JobMaker-Plan—temporary-full-expensing-to-support-investment-and-jobs/
