Discover more about the solar tax incentives available to businesses in South Africa. Effective from 1 January 2016, Section 12B of the Income Tax Act was amended to improve the accelerated depreciation allowance for renewable energy assets. Previously, businesses could claim depreciation over three years (50% – 30% – 20%). This was updated to allow 100% of the solar system cost to be deducted from taxable income in the first year, significantly improving the return on investment for businesses installing solar PV systems.
In 2023, government introduced Section 12BA, a temporary enhancement to the existing renewable energy tax incentive provided under Section 12B. This enhancement was designed to accelerate the adoption of renewable energy technologies by allowing businesses to claim 125% of the cost of qualifying solar PV systems as a tax deduction.
However, this enhanced incentive was temporary in nature and applied only to solar systems brought into use between 1 March 2023 and 29 February 2024. While the 125% enhanced incentive has expired, Section 12B accelerated depreciation remains in place, allowing businesses to claim 100% of the solar system cost in the first year. This incentive continues to support businesses investing in renewable energy, helping to reduce electricity costs, improve energy security, and support sustainability initiative.
Maximize rental property value with solar. Landlords can supply electricity to tenants or reduce communal power costs. With lower solar installation costs and rising Eskom tariffs, now is the perfect time to save on energy and increase revenue.
Unlock tax benefits for solar investments with no claim limits. Understand incentives for informed decisions. Reduce carbon footprint, slash energy bills, and boost profits with solar installations.
Solar energy installation can be expensive, covering assessment, design, plan, installation, and certification costs, besides the panels. InPower Solar simplifies the process, easing the burden and ensuring convenience.
Capitalize on the Section 12B tax incentive, allowing businesses to claim 100% of the cost of a solar PV system as a first-year tax deduction. This accelerated depreciation improves ROI, while VAT-registered businesses can also reclaim the 15% VAT, reducing the overall investment in solar.
