Solar Tax Breaks

Written on 11/07/2023
MJ Minter Inc

Electricity Minister Kgosientsho Ramokgopa has stated that his department is advocating for the tax incentive for solar PV to be extended to batteries and inverters¹. The government wants more businesses and households to opt for rooftop solar, and efforts are under way to push for a tax incentive to be extended to inverters and batteries part of solar PV systems.

Currently, the government is offering a 25% tax incentive to households on their solar PV panels.
The incentive has been effective since 1 March 2023 and will run until 29 February 2024. Claims are capped at R15 000. The incentive strictly applies to solar panels - and not to inverters or batteries. However, Ramokgopa believes that the incentive must be extended to these components.

"We are advocating for, as a department, that we need to have that incentive to be extended to components of that 'self-generation mix' that carries the heaviest capital cost... It shouldn't just be restricted to PV but also should be extended to batteries and inverters".

An expanded incentive would see a "considerable uptake" of solar PV systems. However, it's important to note that the final decision on this matter lies with the National Treasury. We will keep you informed on developments in this regard.