{"id":70499,"date":"2022-11-30T15:02:00","date_gmt":"2022-11-30T13:02:00","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=70499"},"modified":"2024-02-27T13:23:44","modified_gmt":"2024-02-27T11:23:44","slug":"empower-your-home-and-small-business-heres-what-you-can-claim-back-from-renewable-energy-tax","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/empower-your-home-and-small-business-heres-what-you-can-claim-back-from-renewable-energy-tax\/","title":{"rendered":"EmPOWER your home and small business: Here\u2019s what you can claim back from renewable energy tax"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tEmPOWER your home and small business: Here\u2019s what you can claim back from renewable energy tax\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-11-30T15:02:00+02:00\">Nov 30, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"EmPOWER your home and small business: Here\u2019s what you can claim back from renewable energy tax\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/empower-your-home-and-small-business-heres-what-you-can-claim-back-from-renewable-energy-tax\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/ingebarry\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Inge-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Inge-350x350.jpg 350w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Inge.jpg 744w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Inge Barry<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">One moment you\u2019re creating an invoice or presenting on a global conference call, and the next\u2026 darkness.<\/p>\n\n\n\n<p class=\"\">If you\u2019re lucky, your trusty inverter, UPS, or remaining laptop battery saves the day, but many South Africans find themselves stuck between a rock and a dark place <a href=\"https:\/\/www.sage.com\/en-za\/blog\/loadshedding-a-small-business-continuity-plan\/\">when loadshedding hits<\/a>.<\/p>\n\n\n\n<p class=\"\">Do we need to adapt to a new life of generator fuel costs and frantic trips to the nearest internet caf\u00e9?<\/p>\n\n\n\n<p class=\"\">Not if <a href=\"https:\/\/sars.mylexisnexis.co.za\/\">Section 12B of the South African Income Tax Act<\/a> has anything to say about it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-renewable-energy-and-hope\">Renewable energy (and hope)<\/h2>\n\n\n\n<p class=\"\">If ever there was an upside to loadshedding, it would be to encourage the use of clean and renewable energy.<\/p>\n\n\n\n<p class=\"\">After all, the sun won\u2019t flip the switch (yet) and leave you high and dry. Fortunately, South Africa has a lot of sun to go around, and the government is eager for small business owners and entrepreneurs to become more independent.<\/p>\n\n\n\n<p class=\"\">A recent amendment to the Income Tax Act means South African <strong>taxpayers can deduct 100% of their grid-tied solar installation costs from their taxable income as a <\/strong><a href=\"https:\/\/www.sage.com\/en-za\/blog\/asset-depreciation-how-to-claim-tax-back\/\"><strong>depreciation expense<\/strong><\/a><strong> for the first year of use<\/strong>.<\/p>\n\n\n\n<p class=\"\">You\u2019re basically getting solar energy for <em>mahala<\/em> in the first year with an accelerated depreciation allowance.<\/p>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-17a42960-73f4-4567-a988-18a8e5c17857 \"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-17a42960-73f4-4567-a988-18a8e5c17857%20\"\n\t>Download your free climate impact of SMEs report <\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-you-can-claim-back\">What you can claim back<\/h2>\n\n\n\n<p class=\"\">Almost everything, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Project design and engineering<\/li>\n\n\n\n<li>Project installation planning<\/li>\n\n\n\n<li>Panels delivery<\/li>\n\n\n\n<li>Installation<\/li>\n\n\n\n<li>Installation safety officer costs<\/li>\n<\/ul>\n\n\n\n<p class=\"\">And <em>voila<\/em>, your business is greener, cleaner, and well-lit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sound-too-good-to-be-true-here-s-the-but\">Sound too good to be true? Here\u2019s the BUT.<\/h2>\n\n\n\n<p class=\"\">Nothing in life is entirely caveat-free. For one, only a business generating taxable income qualifies for the tax credit, which means residential homeowners can only reap the rewards if they run a business from home.<\/p>\n\n\n\n<p class=\"\">So, if you\u2019ve ever been in two minds about <a href=\"https:\/\/www.sage.com\/en-za\/blog\/ebook-how-to-turn-your-side-hustle-into-a-business\/\">turning your side hustle into your main hustle<\/a>, this incentive may be the tipping point you\u2019ve been waiting for.<\/p>\n\n\n\n<p class=\"\">Other requirements to qualify include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The taxpayer claiming the deduction must <strong>own<\/strong> the solar equipment or pay for the credit instalment.<\/li>\n\n\n\n<li>It must be a <strong>first-time renewable energy purchase<\/strong>, which means you can\u2019t claim if you already use renewable energy.<\/li>\n\n\n\n<li>Only <strong>specific renewable energy resources qualify<\/strong>, like wind power, photovoltaic solar energy, concentrated solar energy, hydropower producing less than 30 megawatts, and biomass.<\/li>\n\n\n\n<li>The 100% deduction is only relevant to <strong>photovoltaic solar energy producing<\/strong> <strong>less than one megawatt.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-1d04a70b-0c96-4d3e-933d-0bbf18c86b76 \"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-1d04a70b-0c96-4d3e-933d-0bbf18c86b76%20\"\n\t>Download the eBook: How to turn your side hustle into a business <\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-of-energy-independence\">Benefits of energy independence<\/h2>\n\n\n\n<p class=\"\">If you qualify for this renewable energy tax break, you\u2019re well on your way to enjoying uninterrupted workdays.<\/p>\n\n\n\n<p class=\"\">Caveats aside, there are massive tax benefits that\u2019ll help you reach the light at the end of the loadshedding tunnel:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>As a matter of VAT: <\/strong>You can <a href=\"https:\/\/www.sage.com\/en-za\/blog\/vat-toolkit-for-small-businesses\/\">claim VAT<\/a> if your business is a registered vendor.<\/li>\n\n\n\n<li><strong>Save money and make money:<\/strong> <a href=\"https:\/\/www.sage.com\/en-za\/blog\/tax-year-end-tip-how-to-claim-for-home-office-expenses\/\">Running a business from home<\/a> has never been sweeter or sunnier.<\/li>\n\n\n\n<li><strong>Appreciate depreciation: <\/strong>You can deduct the solar system\u2019s value as a <a href=\"https:\/\/www.sage.com\/en-za\/blog\/asset-depreciation-how-to-claim-tax-back\/\">depreciation expense<\/a> from your business\u2019s profits.<\/li>\n\n\n\n<li><strong>Same-same, but deferred: <\/strong>The reduction can be carried over as a deferred tax asset to the next financial year.<\/li>\n\n\n\n<li><strong>Cash or credit?: <\/strong>Both cash purchases and credit sales agreements qualify.<\/li>\n<\/ul>\n\n\n\n<p class=\"\"><strong>Escaping the dark side<\/strong><\/p>\n\n\n\n<p class=\"\">If you\u2019re anything like most South Africans, you\u2019re sick and tired of constant power cuts, buying overpriced diesel, and recovering unsaved documents. But with the government being onboard financially, there really aren\u2019t many downsides to installing renewable energy.<\/p>\n\n\n\n<p class=\"\">What\u2019s more, your sustainability practices are sure to impress eco-conscious customers.<\/p>\n\n\n\n<p class=\"\">In fact, according to a Mastercard survey, 76% of South African respondents think it\u2019s important for businesses and brands to become more eco-friendly.<\/p>\n\n\n\n<p class=\"\">And recent <a href=\"https:\/\/www.sage.com\/en-za\/blog\/cop-27-environmental-impact-study\/\">Sage research<\/a> found that SMEs in South Africa understand the urgency of the climate crisis, want to become more sustainable, and are eager to play their part in addressing climate impact.<\/p>\n\n\n\n<p class=\"\"><em>Important tip<\/em>: Remember to keep all receipts, purchase agreements, and invoices for the taxman.<\/p>\n\n\n\n<p class=\"\">Here\u2019s to entering the bright side of life\u2014pun intended.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>One moment you\u2019re creating an invoice or presenting on a global conference call, and the next\u2026 darkness. If you\u2019re lucky, your trusty inverter, UPS, or remaining laptop battery saves the day, but many South Africans find themselves stuck between a rock and a dark place when loadshedding hits. Do we need to adapt to a [&hellip;]<\/p>\n","protected":false},"author":1265,"featured_media":69846,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[35,25],"tags":[321,186,213],"business_type":[2],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[51,85],"coauthors":[443],"class_list":["post-70499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-money-matters","tag-compliance","tag-entrepreneurship","tag-tax","business_type-small-business"],"sage_meta":{"region":"en-za","author_name":"Inge Barry","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-987633966.jpg","imagine_tags":{"51":"Accountants","85":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1265"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=70499"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/69846"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=70499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=70499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=70499"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=70499"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=70499"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=70499"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=70499"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=70499"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=70499"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=70499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}