Energy Options » BUILDINGS

SO YOU WANT TO MAKE $75,000 PA TAX FREE FROM YOUR SOLAR HOME POWER INSTALLATION, EASY…

Editor — Sun, 10 Oct 2010 04:28:42 +0000

TAXATION RULING ON INCOME FROM SOLAR POWER GENERATION @ HOME

AUSTRALIAN GOVERNMENT RULING ON SOLAR POWER GENERATION INCOME

92788

Edited version of private ruling

Authorisation Number: 92788
This edited version of your ruling will be published on the public

the issue date of the ruling. The Information about private

rulings fact sheets have more information.

Please check this edited version to be sure that there are no details

remaining that you think may allow you to be identified. Contact us

at the address given in the fact sheet if you have any concerns.

Ruling

Answer: No.

2. Are you entitled to either an outright deduction

or a decline in value deduction for the cost of the solar panels?

Answer: No.

3. Are you entitled to any deductions in relation to funds borrowed

in order to purchase the solar panels?

Answer: No.

This ruling applies for the following period(s):

Year ended 30 June 2008

Year ended 30 June 2009

Year ended 30 June 2010

Year ended 30 June 2011

Year ended 30 June 2012

The scheme commences on:

1 July 2007

Relevant facts and circumstances

You have a solar electric system on the roof of your principal residence.

You are not registered for GST

You intend to expand your current system.

Under the legislation, the electricity retailer will be required

to credit you 50.05 cents/kwh for the electricity exported

to the grid.

Your purpose for installing your current system was to offset

the cost of electricity now and in the future, and to contribute

to greenhouse emission reductions.

Your reasons for wishing to expand your system are to offset

100% of the electricity consumed in your home and to generate

income from a green source.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1.

Income Tax Assessment Act 1997 Section 6-5.

Income Tax Assessment Act 1997 Section 6-10.

Income Tax Assessment Act 1997 Section 40-25.

Reasons for decision

While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.

Income

Sections 6-5 and 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997) provide that the assessable income of a resident taxpayer includes ordinary income and statutory income derived directly or indirectly from all sources during the income year. Generally, if an amount received is not considered ordinary income or statutory income, it is not included in assessable income.
Ordinary income has generally been held to include three categories, namely, income from rendering personal service, income from property and income from carrying on a business.
Amounts that are not ordinary income, but are specifically included in assessable income by a provision of the taxation legislation, are called statutory income and are also included in assessable income.
There are no specific legislative provisions relating to payments or credits received for the supply of electricity. Therefore the payments or credits are not considered to be statutory income.

Consequently, it is only necessary to consider if the payments or credits should be included as ‘ordinary income’. They will be ordinary income if you are carrying on a business of generating electricity.

Subsection 6(1) of the ITAA 1997 defines ‘business’ to include ‘any profession, trade, employment, vocation or calling, but does not include occupation as an employee’. However, this definition simply states what activities may be included in a business. It does not provide any guidance for determining whether the nature, extent, and manner of undertaking those activities amount to the carrying on of a business. For this purpose it is necessary to turn to case law.

The cases provide a number of indicators that are relevant to determining whether activities constitute the carrying on of a business. These indicators are set out below.

Significant commercial purpose or character

The ‘significant commercial purpose or character’ indicator is linked to the size and scale of activity, the repetition and regularity of activity and the profit indicators. A way of establishing that there is a significant commercial purpose or character is to compare the activities with those of a taxpayer who is carrying on a similar activity that is a business.

The intention of the taxpayer

The intention of the taxpayer in engaging in the activity is a relevant indicator. This indicator is particularly related to:

- whether there is an intention to make a profit, and

- whether the activity is better described as a hobby or the pursuit of a recreational or sporting activity.

Prospect of profit

We believe it is important that the taxpayer is able to show how the activity can make a profit. Stronger evidence of an intention to make a profit occurs when the taxpayer has conducted research into his/her proposed activity, consulted experts or received advice on the running of the activity and the profitability of it before setting up the business.

Repetition and regularity

It is often a feature of a business that similar sorts of activities are repeated on a regular basis. The repetition of activities by the same person over a period of time on a regular basis helps to determine whether there is the carrying on of a business.

Is the activity of the same kind and carried on in a manner that is characteristic of the industry?

An activity is more likely to be a business when it is carried on in a manner similar to that in which other participants in the same industry carry on their activities

In considering this indicator the following factors might be compared with the characteristics of others engaged in the same type of business:

- the amount invested in capital items

- previous experience of the taxpayer

Organisation in a businesslike manner and the use of system

Business should be conducted systematically. A business is characteristically carried on in a systematic and organised manner rather than on an ad hoc basis. An activity should generally conform with ordinary commercial principles to amount to the carrying on of a business.

Size or scale of the activity

The larger the scale of the activity the more likely it will be that the taxpayer is carrying on a business. However, this is not always the case.

Hobby or recreation

The pursuit of a hobby is not the carrying on of a business for taxation purposes. Money derived from the pursuit of a hobby is not regarded as income and therefore is not assessable. Expenses incurred in relation to the hobby activity are not allowable deductions. However, we recognise that a hobby can sometimes turn into a business.

Application to your circumstances:

One of your reasons for wishing to expand your solar panel system is to receive income. This is a factor which points towards the carrying on of a business. However, the following factors point towards the opposite conclusion:

· although large for a home system, it is designed for domestic rather than commercial use.

· your other reasons for expanding the system are to offset 100% of the electricity consumed in your home and to support the production of renewable energy.

· although you wish to receive income from the system, given its substantial capital cost, there is no prospect of profit in the short or medium term. The likelihood of profit in the long term is also questionable as it is dependant both on the length of time the panels will remain effective before requiring replacement and you not changing residences. As you intend to borrow the funds needed to expand the system, the prospect of profit is even further reduced due to the additional interest expenses that will be incurred.

· your activity will not be carried on in a manner similar to other participants in the electricity generation industry. Commercial electricity providers operate on a size and scale vastly larger than the activity that you propose.

Having regard to all of the above, it is considered that you would not be carrying on a business of generating electricity. Therefore, any payments or credits you receive from your solar panels will not be assessable income.

Deductions

The general deduction provision is section 8-1 of the ITAA 1997 which allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.

The cost of an asset used to produce assessable income is not deductible outright under section 8-1 of the ITAA 1997 as the expenditure is capital in nature. However, a decline in value deduction claimed over the effective life of the asset is available under section 40-25 of the ITAA 1997.

No deductions are available for any of your expenditure in relation to your solar electric system (including expenditure relating to funds borrowed to purchase the system such as interest) as the payments or credits you receive in relation to the system are not assessable income.

DISCLAIMER

You cannot rely on the rulings in the Register of private binding rulings in your tax affairs. You can only rely on a private ruling that we have given to you (or to someone acting on your behalf). For more information about relying on rulings refer to the relevant private rulings fact sheet(s).

The Register of private binding rulings is a public record of private rulings issued by the Tax Office. The Register is an historical record of rulings, and we do not update it to reflect changes in the law or our policies.

The rulings in the Register have been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict Tax Office policy or decisions.

This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968 all other rights are reserved. Requests for further authorisation should be directed to the Manager, Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, Canberra ACT 2601, or by email to commonwealthcopyright@dcita.gov.au

Sourced & published by Henry Sapiecha

FILM SPRAYED ON WINDOWS CREATE SOLAR PANELS

Editor — Mon, 23 Aug 2010 07:38:26 +0000

Spray-on film turns windows into solar panels

Imagine if all the windows of a building, and perhaps even all its exterior walls, could be put to use as solar collectors. Soon, you may not have to imagine it, as the Norweigan solar power company EnSol has patented a thin film solar cell technology designed to be sprayed on to just such surfaces. Unlike traditional silicon-based solar cells, the film is composed of metal nanoparticles embedded in a transparent composite matrix, and operates on a different principle. EnSol is now developing the product with help from the University of Leicester’s Department of Physics and Astronomy. Read More

Sourced & published by Henry Sapiecha

COLLEGE TO HAVE STAND ALONE SOLAR POWER SYSTEM & HAVE A SURPLUS TO SELL

Editor — Thu, 05 Aug 2010 06:44:15 +0000

College to be first ‘grid positive’

OROVILLE, Calif. (UPI) — A California college says it is set to become the nation’s only grid-positive college, producing more energy from its own on-site solar power than it uses.

Butte College in Oroville, Calif., will add 15.000 solar panels to its existing 10,000 by May 2011 to become the largest solar-producing college in the world, a college release said Wednesday.

“Once this solar project is completed, Butte College will provide enough clean renewable energy to cover all of our electricity needs and generate slightly more than we use — which will be a source of additional revenue for the college,” Dr. Diana Van Der Ploeg, Butte College President, said.

The school’s solar panels will generate more than 6.3 million kilowatt hours per year, enough energy to power more than 9.200 average-sized homes, the release said.

The 15,000 new solar panels will be placed atop rooftops and will create covered parking areas and walkways.

The project will cost $17 million, with $12.65 million coming from federal Clean Renewable Energy Bonds, which are low-interest loans that can be used for clean energy projects.

The college will fund the remainder, up to $4.35 million.
Sourced & published by Henry Sapiecha

SHOUT FOR WIND & POWER FROM THE ROOF TOPS

Editor — Tue, 06 Jul 2010 07:25:38 +0000

INVEST IN WIND POWER AS A NATIONAL MANUFACTURER

Lifecycle. Wind power generation from the roof top of your building

David Hare, who describes himself as an “environmental
entrepreneur”, owns 80 per cent of Windation Energy Systems
Australia – a would-be maker of rooftop wind turbines. (The
turbines’ American designer owns the other 20 per cent).
The missing piece is another investor to take him from
holding the Australian and New Zealand licence rights to
contracting a local manufacturer to, if all goes well, selling
turbines to commercial building owners.
But the 38-year-old’s “main business” is one he owns solely:
Eco Rebates.
As well as holding the Windation investment, Eco Rebates
advises homeowners and businesses on how they can save

energy and water. Its 60 assessors have been accredited under

the national Green Loans program (meaning the federal government will pay the $250 assessmen fee on homeowners’ behalf).
A vegetarian since he was 24, Hare’s entrepreneurism is even more longstanding.
His family’s engineering firm(Hare & Forbes) stretches back over eight decades. In his 20s his marketing helpedCentury 21 become Optus’ top mobilephone dealer in the 1990s.
The following decade he wenton to found his first business,
thecomputerschool.net, a computertraining company he sold in 2007.
Its sale seeded a series of propertyprojects, which fed Hare’s growing
awareness of how homes and buildingsadd to climate change. Eco Rebates
turned this awareness into a businessopportunity. In October, 2008, a headline
on technology website CNET – “Urban wind power inspired
by ancient Persia” – caught Hare’s attention. He immediately
made contact with the subject of the story, Iranian-born
Mark Sheikhrezai, who was installing his first wind turbine at
the Palo Alto Medical Foundation in California. Sheikhrezai
persuaded Hare to bring the idea to Australia.
The turbine, which generates up to 5 kilowatts of electricity,
is about the size of a commercial rooftop air-conditioning unit.
Hare says there is “quite a bit of interest” from local building
owners and power companies but says he needs the help of
the government (which subsidises rooftop solar panels but not
wind turbines), local industry (to bring the unit and installation
cost down from $30,000) and, of course, investors.
The green tinge of his newest ventures is no accident, Hare
says. “I am very passionate about making positive, constructive
changes globally.”.

….More >>>Windation Energy Systems_Australia_Commercial in Confidence V2

…More >>> www.mandatorydisclosureconsultants.com.au

Received & published by Henry Sapiecha

HAVE YOUR OWN WIND POWER INVESTMENT CHEAP

Editor — Sat, 19 Jun 2010 05:39:41 +0000

ROOF TOP WIND ENERGY SYSTEM FOR EVERYONE

EXECUTIVE SUMMARY

WINDATION ENERGY SYSTEMS AUSTRALIA PTY LTD provides the most effective renewable energy wind turbine suitable for installation to urban buildings in the world. The patented TWM 5000 units by Windation produce up to 5Kw of clean electricity, have no external moving parts and discretely produce electricity. The units are un-obtrusive and comply to International standards IEC 61400-2. Windation units are the premier choice for urban wind farming as the units can be mounted in multiple arrays and operate whisper quietly. Additional power can be produced with solar panel mounting making Windation’s urban wind turbines an unbeatable choice for energy conscious building owners, tenants, investors, or clean power companies. Windation’s TWM mounts like a commercial Air conditioning unit with ease and plans are being been made to position Windation as the number 1 clean energy wind turbine network globally.

COMPETITIVE ADVANTAGES

Unique product – No competitor
Unique design unmatched in suitability for buildings
Renewable energy sector
High growth industry and opportunities
High safety factor – No external moving parts
Resalable electricity asset
Discrete mounting and positioning
Wind turbine for city buildings
Untapped market
High output per square metre
Perfect timing for market readiness

KEY INVESTMENT HIGHLIGHTS

Increased Electricity costs and feed in tariffs after July 1st
Valuable Carbon credits and renewable energy certificates produced
Recent Government support with stimulus programs
Renewable energy grants available
Increasing coal and oil costs forcing market shifts
Electricity grid currently incapable of serving network
Pre Launch opportunities
Extremely competitive with solar PV
High market demand in renewable sector
Carbon emissions trading will recommence
Share holding available under ten year licence
Australia NZ Exclusivity
Patented first of its kind
Fastest Growing Wind energy source in the World
US and International patents in place

BOARD & MANAGEMENT

David Jeffery Hare - Executive Director

Management role assisting Century 21 to be No 1 Telecommunications dealer (Optus) 90′s. Director – ECO REBATES P/L & WINDATION ENERGY AUS P/L 2009. Director – thecomputerschool.net (International website training site) 2005 – 2007. Family background HARE & FORBES (60years) National engineering machine suppliers.

Mark Sheikhrezai – Executive Director

Founder, CEO Rotating Machinery, system design expert, Mechanical Engineer MSME, PE Photo electronic corporation, Beckman Instruments, Composite Rotor.

EXIT STRATEGY

Company wishes to reach an IPO stage on suitable exchange platform or trade sale.

CORPORATE STRUCTURE

WINDATION ENERGY SYSTEMS AUSTRALIA PTY LTD is 80% owned by ECO REBATES PTY LTD a company solely owned and directed by David Hare and 20% owned and directed by Windation Energy systems I

Sourced & published by Henry Sapiecha

RECYCLED SHIPPING CONTAINERS AS SOLAR CHARGE STATIONS

Editor — Wed, 05 May 2010 01:03:24 +0000

• Beautiful Earth Group solar EV Charger:

New York-based Beautiful Earth Group has launched a solar-powered electric vehicle charging station in Red Hook, Brooklyn, which is powered entirely by a 235W photovoltaic system. The off-grid modular station is constructed of recycled shipping containers and can charge a range of plug-in electric vehicles including the BMW Mini E, which has a range of 100 miles and takes about 3 hours to charge.

What a great idea. Ther is more to come yet with innovation

Sourced and published by Henry Sapiecha 5th May 2010

CONCEPT OF CAR CHARGE FUEL STATIONS A REALITY

Editor — Wed, 05 May 2010 00:29:13 +0000

ELECTRIC CHARGE CAR STATIONS ON THE WAY

Hopefully in the near a future majority of vehicles will be powered by electricity. Not only will these vehicles prove to be inexpensive to fuel, but will also ensure a healthier environment. However, this move towards cleaner highways will burden the grid, which is also striving to get those extra watts without polluting the environment. Several companies have sought a green approach to cater the problem, which comes in the form of charging stations that are fueled by abundant solar energy. Here are 11 such charging stations that won’t burden the grid to make you commute without emissions:

Sourced and published by Henry Sapiecha 5th May 2010

GREAT SYSTEM FOR SOLAR POWER COLLECTION TO CHARGE CARS

Editor — Wed, 05 May 2010 00:22:09 +0000

SOLAR CHARGING STATION IN FRANKFURT -GERMANY

Evergreen Solar has installed its new solar charging station in a high-traffic area in Frankfurt, Germany. The solar “fuel” station provides free battery charging for small-scale electric vehicles including Velotaxis, Segways, electric bikes and scooters.

Sourced and Published by Henry Sapiecha 5th May 2010

SANTA BARBARA GETS NEW SOLAR SELF SUFFICIENT CAR PARK

Editor — Tue, 04 May 2010 23:32:53 +0000

ISLA VISTA NEW SOLAR PARKING LOT COMPLETED

After much anticipation, finally a new solar parking lot opened its doors at the heart of Isla Vista yesterday. Located at 881 Embarcadero del Mar, the parking lot with 45 parking spaces has been built incorporating several eco-friendly features. The County of Santa Barbara got the property for $1.4 million in order to construct a solar powered parking lot worth $760,000. Nearly $200,000 were spent on the solar set-up alone.

Residing on a half-acre site that once housed a Chevron gas station, the parking lot has an array of 98 solar panels, which are mounted onto steel beams that are placed just above the parking stall. These panels generate enough power to light up the parking space along with the parking meters. Isla Vista is looking forward to increase the number from 98 to 109 very soon. With the additional solar panels, the community is hoping to see all the lights along Pardall Road to power up as well. The parking lot also has a water filtration system that will help keep storm runoff clean.

Sourced and published by Henry Sapiecha 5th May 2010

SOLAR CAR PARKS ARE A WINNER

Editor — Tue, 04 May 2010 23:19:50 +0000

Dell Installs Solar Trees in HQ Parking Lot

Energy Options » BUILDINGS

SO YOU WANT TO MAKE $75,000 PA TAX FREE FROM YOUR SOLAR HOME POWER INSTALLATION, EASY…

TAXATION RULING ON INCOME FROM SOLAR POWER GENERATION @ HOME

92788

FILM SPRAYED ON WINDOWS CREATE SOLAR PANELS

COLLEGE TO HAVE STAND ALONE SOLAR POWER SYSTEM & HAVE A SURPLUS TO SELL

SHOUT FOR WIND & POWER FROM THE ROOF TOPS

HAVE YOUR OWN WIND POWER INVESTMENT CHEAP

RECYCLED SHIPPING CONTAINERS AS SOLAR CHARGE STATIONS

CONCEPT OF CAR CHARGE FUEL STATIONS A REALITY

GREAT SYSTEM FOR SOLAR POWER COLLECTION TO CHARGE CARS

SANTA BARBARA GETS NEW SOLAR SELF SUFFICIENT CAR PARK

SOLAR CAR PARKS ARE A WINNER

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