Tax breaks for rooftop solar in South Africa

Finance minister Enoch Godongwana has announced that National Treasury will be providing tax incentives and tax relief to South African businesses and households to encourage a rapid move to renewable energy.

This will include a massive rebate for businesses launching renewable energy projects and a smaller incentive for private households.

Through these two incentives, the Treasury said it would be offering R4 billion in relief provided for individuals that install solar panels and R5 billion to companies through an expansion of the renewable energy tax incentive.

For private households, 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,” the minister said.

To qualify, the solar panels must be purchased and installed at a private residence, and a certificate of compliance for the installation must be issued from 1 March 2023 to 29 February 2024.