Can South Africans secure tax rebates on solar panels?

Alternate electricity options are growing in popularity nationwide. We research if solar panel installations result in South Africans receiving worthwhile tax rebates.

What are the tax incentives for solar panels in South Africa? 

It is as important as ever to ensure your finances are looked after in today's economic climate. Before you decide to install solar panels in your home, consider the cost of installation and your home's specific needs. 2023's budget speech announced that South Africans can claim up to R15 000 in tax rebates resulting from solar panel installation. This initiative will run for one year to encourage sustainability and resource development, resulting in more energy and job creation in South Africa.

Besides tax rebates and the advantage of having a constant energy supply, installing solar panels will bring you a world of benefits if you happen to work from home. Having a stable internet connection and the ability to keep devices charged and appliances running make an incredible difference. Your efficiency levels will increase, along with your household productivity, without having to put tasks on hold for hours at a time during load shedding. 

Do you get a tax refund for solar panels?

Ending at a maximum value of up to 25% of the entire cost, tax refunds for solar panels have become a welcome incentive for those wishing to go off the grid. Members of the public are encouraged to invest in clean energy supply to help ease the national load and introduce a generation of consumers to reliable power.

Regardless of the amount you spend on your new and unused solar panels, you will receive the tax rebates within the maximum amount stipulated. The government has clearly outlined the tax benefits and aligned them with the demand for electricity households need to run on a daily basis.

Do you pay tax on solar panels in South Africa? 

If you're a homeowner and have solar panels installed solely for your household electricity purposes then you will not have to pay any tax for your new power supply. Businesses that generate a profit and are run on solar panels, however, will need to. Your specific solar panels will have to meet a certificate of compliance according to the terms and conditions of the Electrical Installation Regulations of 2009. This is for your own safety and for tax purposes. As long as your solar panel system is connected to the mains distribution of your home your tax rebate will apply. All new domestic solar panels that fall under the correct guidelines and regulations during the time period of 1 March 2023-29 February 2024  will qualify for the 25% tax rebate. 

Who is eligible for solar rebates in South Africa? 

Any person who pays personal income tax is able to claim a rebate against their tax liability. However, this only applies to homeowners and is not considered the standard for business premises. Only solar panels with a minimum capacity of 275W per panel qualify. Portable panels, unfortunately, do not qualify. Other components of the systems such as inverters, diesel generators, battery-operated devices or unknown fittings will also be excluded.

Only new and unused solar panels qualify to be installed, whether as an addition to an existing installation or a brand-new venture. 

 Consider switching to solar panels 

Your home deserves the best. With the ongoing uncertainty regarding the electricity supply in South Africa, your safest bet would be to protect your investments and appliances to avoid costly repairs and replacements. Look to solar panels as the future of energy supply and help the environment while making wise financial decisions.