In an era marked by rising energy prices, frequent power supply disruptions and mounting climate change concerns, the appeal of affordable and reliable green power is undeniable. As businesses and industries seek ways to navigate these challenges, the spotlight on renewable energy solutions has never been brighter. But amidst this pursuit, a pivotal question arises: Should you pay cash for your renewable energy project, fund it from available banking facilities, or could partnering with Broadreach Energy be a game-changing advantage?
Unlocking Tax Savings
Let’s dissect this dilemma and uncover the compelling reasons why collaborating with Broadreach Energy could be the key to unlocking remarkable economic benefits.
An incentive that tips the scale towards partnering with Broadreach Energy is the recent development in South African tax legislation, a topic we covered more in-depth in our previous blog. The change in this legislation has opened doors for businesses to enjoy greater savings while transitioning to renewable energy solutions. As highlighted in the Finance Minister’s budget speech, starting from 1 March 2023, the allowance for solar PV system costs will increase to 125%, claimable in the first year regardless of system size.
This translates to a potential reduction of up to 33.75% (27% company tax rate multiplied by 125%) of the system’s cost. This deduction is a valuable opportunity to decrease your tax liability. For any unutilised portion, the Income Tax Act provides mechanisms for carrying over the deduction to subsequent tax years, ensuring that the benefits endure as you navigate your financial landscape.
A Full-Service Approach
Beyond the fiscal realm, choosing Broadreach Energy over conventional banking partners brings businesses a distinctive advantage. Banks may provide funding, but they rarely offer further assistance. Broadreach Energy, on the other hand, isn’t just a financier – we’re your partner in every step of the renewable energy journey.
Our comprehensive suite of services extends beyond financing. From project inception to operation, we tailor the experience to your business’s unique requirements. We oversee the construction process, ensuring quality and efficiency. And, as your long-term partner, we manage maintenance and upkeep, ensuring your renewable energy system remains efficient, reliable, and fully functioning. By overseeing construction, managing operations and providing maintenance and repairs, we bear the risks associated with these tasks, leaving you with a hassle-free and cost-effective solution.
The flexibility of Broadreach Energy’s full-service approach distinguishes us from banks. A tailored deal offers on-balance and off-balance sheet financing options. It’s a dynamic, customer-centric approach that aligns perfectly with your business’s objectives.
The Broadreach Advantage
While the allure of self-financing may initially seem appealing, a closer examination reveals a different story.
Considering the expenses associated with engaging engineers, supervising construction, operating, maintaining, repairing and insuring your renewable energy system, the prospect of shouldering these financial and operational burdens becomes daunting. In contrast, Broadreach Energy’s comprehensive approach takes these challenges off your plate.
The essence of Broadreach Energy’s advantage lies in offering peace of mind. With our expertise and resources, you can rest assured that your energy needs are met seamlessly, without having to allocate substantial resources towards administration and risk management.
In conclusion, the economic benefits of financing renewable energy solutions through Broadreach Energy are not merely financial; they encompass operational efficiency, risk mitigation, and a comprehensive service experience. The synergy between financial expertise and industry leadership equips us to deliver a unique advantage in your pursuit of sustainable energy. Join us in making a difference while securing a greener, more prosperous future for your business. Take a look at our website to find the ideal financing option for you.
FNB Alternative Energy Solutions: https://www.fnb.co.za/business-banking/industry-expertise/alternative-energy-solutions/index.html
Income Tax Act of South Africa: www.sars.gov.za/AllDocs/LegalDoclib/Income-Tax-Act
Section 12B of the Income Tax Act
Section 20 of the Income Tax Act