More people in the modern world are either working on a flexible arrangement or starting their own business at home. This allows for better work/life balance, reduces overheads and limits our environmental impact by eliminating commuting and driving less. Unfortunately it also means a greater drain on the electricity grid, which in turn leads to higher bills.

Solar solutions are your best friend when working from home – and there are ways you can even claim it on tax, so you can begin to enjoy the savings sooner.

Make use of the instant asset write-off scheme

If you are running your business remotely, then a solar system can be deducted from your EOFY taxes. An Australian Tax Office representative confirmed that a rooftop system could be claimed under the $20,000 instant asset write-off scheme.

“The cost of a solar system can be claimed under the $20,000 instant asset write-off, where the system costs less than $20,000, and it is bought and used by an eligible small business to generate electricity for use in the business,” the representative said.

Not familiar with the instant asset program? It’s a highly successful scheme rolled out by the ATO that enables eligible companies to deduct the work-related portion of the cost of new or second-hand depreciating assets. The cap is $20,000 and you can purchase multiple work-related items.

Just be mindful that you won’t get a complete deduction here, as you’ll have to factor in the amount of power being used for household reasons.

“Where a portion of the electricity generated by the system is used for private purposes (for example, in a home-based business), the cost of the system must be apportioned when claiming the instant asset write-off,” the ATO representative said.

“A reasonable method of apportionment could be the ratio of electricity consumed by the household compared to the electricity consumed by the business.”

What about people working from home? 

The instant asset write-off program is great for businesses, but what about individuals? COVID-19 has accelerated flexible work arrangements, which means more home offices and more electricity expenses.

So can you claim deductions for installing solar panels at home if that is where you work? That’s where the line begins to get a bit blurry. ATO rules state that you can claim office expenses like computer equipment, phone expenses, heating, cooling and lighting, repairs and cleaning.

Occupancy expenses like your mortgage payments, rent, rates and insurance cannot be claimed as deductions. Installing solar panels kind of sits in the grey area between home and occupancy expenses.

On one hand you’re making a household improvement, which is independent of your business. On the other hand, you’re installing it to reduce your energy usage, which is considered acceptable.

In many cases like this, the ATO deals with these matters on a case-by-case basis. Energy Matters can assist you through this process, ensuring you get every deduction and rebate you are entitled to.

Ask us for a quick solar quote, or contact us today toll-free on 1800 EMATTERS. You can also email our friendly team for expert, obligation-free advice.


For lighting, electrical, signage, and technology solutions that allow you to do more call Sverige Energy today at +4(670) 4122522.