If you're considering a commercial solar installation, there's never been a better time to invest in business solar solutions. The New Zealand Government's new "Investment Boost: allows businesses to deduct 20% of the cost of new assets - including solar systems- upfront from taxable income. This is in addition to the standard depreciation you can claim each year.
What Does This Mean For Your Business
- Immediate Tax Relief: Lower your taxable income in the first year of your solar investment.
- Faster Payback: Reduce your effective investment cost and accelerate your return on investment (ROI).
- Ongoing Savings: Claim annual depreciation on your solar system, improving your business's cash flow.
Example Calculation*
If your company invests $100,000 in a new industrial solar energy system or solar for offices, you can deduct $20,000 immediately from your taxable income. You'll then continue to depreciate the remaining $80,000 over the asset's useful life.
How to Claim
The AA Solar team will work closely with you and your accountant to ensure you maximise every available incentive for your commercial solar installation.
Ready to learn more?
Contact us for a free tax and solar savings consultation*.
Frequently Asked Questions
Can my business claim depreciation on a solar installation?
Yes. Solar systems are considered depreciable assets, so you can claim annual depreciation, reducing your taxable income and improving cash flow.
What is the new 20% upfront deduction for business assets?
Under the 2025 "Investment Boost," you can deduct 20% of the cost of a new solar system from your taxable income immediately, in addition to standard depreciation.
How do these tax benefits affect my solar ROI?
By reducing your upfront tax bill and continuing to deduct depreciation, you lower your effective investment cost and accelerate your payback period.
How quickly will I see a return?
With the new 20% upfront deduction and ongoing depreciation, combined with ongoing electricity bill reductions, the payback period has been significantly shortened. Many commercial businesses are seeing positive cash flow from their solar investment in as little as four years, depending on system size, energy usage, and site conditions.
*The information provided on this website is for general information purposes only and should not be considered financial or tax advice. AA Solar recommends that you consult with your accountant or tax advisor to independently assess how these incentives apply to your specific business circumstances.
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