Under Section 12B of the Income Tax Act, businesses in South Africa can claim 100% of the cost of a solar PV system as a tax deduction in the first year.

This accelerated depreciation incentive reduces taxable income and significantly improves the return on investment for commercial solar installations.

In addition, VAT-registered businesses can also claim back the 15% VAT on the system cost, further lowering the overall investment.

By installing solar, businesses can reduce electricity costs, gain energy independence, and benefit from government-supported renewable energy incentives.