Installers - Commercial Solar
Commercial scale capacity represented nearly a quarter of the total capacity of solar PV installed in 2016. No matter what state you live in the facts speak for themselves, businesses want solar. To help clients take advantage:
- Green Energy Trading now gives a bonus payment for STCs on all 50kW+ installs submitted through Geo.
- Geo makes it simple with its built in compliance checks giveing a near zero certificate rejection rate.
- You have complete control over your jobs and you can view their current status at any time.
- Your jobs are completed quicker and you get your money faster.
Sign up for Geo today to get the highest prices for your STCs.
If your client is thinking about going over 100kW's and into LGC territory, no need to worry. As Australia’s largest registrar of power stations, our experience sets us apart from our competition.
- We work in partnership with installers, developers and system owners to get your power stations accredited.
- We then login remotely to the meters, download the generational data and submit it for approval.
- Every February we submit the mandatory annual generational report for your power station.
- We also act as the primary point of contact for all regulator communications and compliance related issues.
- Power Station client’s can utilise our market positioning to secure forward price cover with either fixed price or variable price options.
Green Energy Trading covers every aspect of the LGC creation process and can provide you with clear and concise information and first-class customer service.
Let us manage your LGC creation from start to finish, contact us today on 1300 077 784.
Case study – Better practice invoicing for GST-registered system owners
Since the Australian Tax Office’s ruling on appropriate invoicing practices for environmental certificate creation, I’ve had conversations with many installers who have adopted better practices in their GST treatment. This case study aims to clearly describe what better practice looked like for one such installation company (whose identity has not been disclosed), which took measures to improve its invoicing approach for GST-registered system owners.
This case study is intended to provide an illustration of better practice only. Let me re-state, I’m neither a taxation nor legal advisor and I have not considered any specific circumstances or business needs. While this case study lays out a general approach that I think makes sense, I’d invite you to sit down with your accountant or business advisor and assess its merit.
Starting with a valid concern
Just last week I had a long chat with an installer who described their GST concerns with a perfectly valid question:
“OK – I get why the system owner needs to raise an invoice to Green Energy Trading, but how are they going to get paid for it? It’ll stay on their system forever...”
The invoice did get paid (by Green Energy Trading) and the money went straight to the installer. The question was: how did both the installer and the system owner account for it? It turns out he was right to be concerned, as his existing invoice process was difficult to account for, and almost impossible to explain. Let me show you what it looked like:
(If this looks familiar to you, don’t panic. Under the previous system of invoicing, the GST is accounted for properly, and your invoice to Green Energy Trading for the certificates would have picked up the extra income in your business. Going forward however, this presents two problems:
- Green Energy Trading can no longer legally accept an invoice from you for the certificates anymore, and
- the system owner has nothing outstanding on the bill to net off against their invoice.
Additionally, I’m not comfortable with describing the STC value as a discount – and neither is the ATO. It’s a payment, and it hasn’t happened yet, so why indicate that the system owner’s obligation is only $19,800? What if the system owner misunderstands and puts a claim in themselves, or if the certificates are invalidated for some reason? How would the installer mount a convincing claim for the outstanding funds when the invoice declares the amount is a discount?)
Ending with better practice
The installer decided to keep the certificate value out of the right-hand column of their customer’s invoice. He made more use of notations, and he didn’t let system owner off the hook until the money was in his pocket. And even then, he kept the door open against possible future action by the regulator. It looked like this:
Please note, this is not a pro-forma for your use. It’s a talking point for you and your professional advisors to discuss, with reference to your specific circumstances.
Things just got a whole lot easier…
- had correctly accounted for the full value of the system (for both GST and income purposes)
- could apply the system owner’s payment ($19,800) and Green Energy Trading’s payment ($6,600) against their invoice without further adjustment
- had clearly stated the system owner’s obligation to assign the certificates to Green Energy Trading, or pay the difference.
The system owner:
- raised their invoice for $6,600 inc GST to Green Energy Trading for the STCs
- could ‘net off’ the amount they are owed on this invoice against the amount they owe the installer on their invoice understood that they were liable for the full value of the invoice until the certificates were properly created.
I hope this case study assists in your understanding of better practice in GST treatment, and supports installers with their conversations with GST-registered system owners. Should you have any further questions in relation to GST, please don’t hesitate to:
- call us on 1300 077 784
- refer to our GST information sheets in the documents tab
- speak with your professional advisors.
All the best,
Luke Konynenburg, General Manager
This information is based on the most up-to-date information available to Green Energy Trading and is of a general nature. As such, it may not be appropriate for your specific situation, and you should always seek advice from your taxation specialist. Whilst we make every effort to ensure that the information in this news item is accurate and complete we do not accept any liability arising from any inaccuracy or omission in any of the information herein, or any liability arising in respect of information provided by us or any other person.
How to invoice your customer - PDF | 0.37 MB
This information sheet, for system suppliers, explains how to invoice a system owner, including adequate provision for GST.
Invoice requirements for GST-registered customers - PDF | 0.37 MB
This information sheet explains invoicing requirements for system owners who are registered for GST.
How to invoice Green Energy Trading if you have already received an upfront discount - PDF | 0.44 MB
This information sheet explains how to invoice Green Energy Trading if you have already received an upfront discount.