This was part of R13bn in tax relief proposals contained in the 2023 budget, of which R9bn goes towards rebates for investments in renewable energy.
“Individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15,000. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive will be available for one year,” said Godongwana.
President Cyril Ramaphosa first made the announcement in his state of the nation address (Sona), saying the finance minister would elaborate further on budget day.
Treasury explained in the Budget Review that the 25% tax rebate for households was available only for solar panel installations, not inverters and batteries.
“For example, an individual who purchases 10 solar panels at a cost of R40,000 can reduce their personal income tax liability for the 2023/24 tax year by R10,000.”
Treasury is also expanding existing incentives to encourage businesses to invest more in renewable energy sources such as solar, hydropower, biomass and wind. Businesses can claim up to R337,000 in tax rebates in the first year of investment.
BUDGET 2023 | R9bn in tax relief through solar power rebate
Image: Gosolr
Homeowners and business intending to invest in rooftop solar panels and other renewable energy sources to escape load-shedding will soon benefit from tax breaks.
Finance minister Enoch Godongwana announced in his budget speech that households could claim up to R15,000 in tax rebates starting from March 1 for installation costs of photovoltaic rooftop solar panels.
This was part of R13bn in tax relief proposals contained in the 2023 budget, of which R9bn goes towards rebates for investments in renewable energy.
“Individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15,000. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive will be available for one year,” said Godongwana.
President Cyril Ramaphosa first made the announcement in his state of the nation address (Sona), saying the finance minister would elaborate further on budget day.
Treasury explained in the Budget Review that the 25% tax rebate for households was available only for solar panel installations, not inverters and batteries.
“For example, an individual who purchases 10 solar panels at a cost of R40,000 can reduce their personal income tax liability for the 2023/24 tax year by R10,000.”
Treasury is also expanding existing incentives to encourage businesses to invest more in renewable energy sources such as solar, hydropower, biomass and wind. Businesses can claim up to R337,000 in tax rebates in the first year of investment.
The Budget Review said the tax rebate would aid South Africa’s just energy transition, as Eskom continues to prioritise its coal-powered fleet and spending on diesel for its open-cycle gas turbines in its uphill battle to keep the lights on.
With the utility having implemented crippling stage 6 load-shedding after a breakdown of numerous generating units, many households and businesses are looking at other alternative power sources to keep the lights going.
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