{"id":70777,"date":"2023-04-04T11:35:57","date_gmt":"2023-04-04T09:35:57","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=70777"},"modified":"2026-01-29T14:16:06","modified_gmt":"2026-01-29T12:16:06","slug":"solar-tax-incentives-for-individuals-and-businesses","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/solar-tax-incentives-for-individuals-and-businesses\/","title":{"rendered":"Solar tax incentives for individuals and businesses"},"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\/strategy-legal-operations\/compliance\/\" class=\"entry-header__link\">Compliance<\/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\tSolar tax incentives for individuals and businesses\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\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=\"2023-04-04T11:35:57+02:00\">April 4, 2023<\/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=\"Solar tax incentives for individuals and businesses\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/solar-tax-incentives-for-individuals-and-businesses\/\"\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\t<\/header>\n\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\/jasper\/\">\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\/2022\/02\/Jasper--350x350.jpg\" class=\"entry-author__image\" alt=\"Jasper Basson\" \/>\t\t\t\t<span class=\"entry-author__name\">Jasper Basson<\/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>When it comes to renewable energy, <a href=\"https:\/\/www.treasury.gov.za\/documents\/National%20Budget\/2023\/2023%20Budget%20FAQs%20-%20Solar%20Panel%20Tax%20Incentive.pdf\">South Africa has two tax incentive programmes<\/a>: One for individuals and their private residences and one for business owners.<\/p>\n\n\n\n<p>Understanding solar tax rebate calculations is important because it can significantly reduce the initial cost of installing a solar system and make it more financially viable, especially for businesses.<\/p>\n\n\n\n<p>A solar panel tax incentive is a government programme that provides tax breaks to encourage homeowners or businesses to invest in solar energy installations. Tax credits, rebates, deductions, and exemptions are all examples of incentives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-solar-tax-incentives-for-individuals\">Solar tax incentives for individuals<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-za\/blog\/empower-your-home-and-small-business-heres-what-you-can-claim-back-from-renewable-energy-tax\/\">Individuals that install rooftop solar panels<\/a> qualify for a 25% rebate on the cost of new or unused solar panels \u2013 up to a maximum rebate of R15,000.<\/p>\n\n\n\n<p>To take advantage of the total tax incentive, you\u2019ll need to invest in solar panels worth R60,000. Suppose you pay an average of R2,500 per solar panel. In that case, you\u2019ll need to buy 24 panels to benefit from the maximum rebate.<\/p>\n\n\n\n<p>If the average home uses between five and ten solar panels at a cost of between R12,500 and R25,000, homeowners can claim a rebate of between R3,125 and R6,250.<\/p>\n\n\n\n<p>Remember that this excludes the cost of the inverter and batteries to complete the solar system.<\/p>\n\n\n\n<p>Although a wonderful incentive, it\u2019s not practical, realistic, or affordable for most South African households.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\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\">Get your free cashflow template<\/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>Download our free cash flow forecast template to help you run your business and achieve your goals<\/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-7d24dde7-b594-451e-bf9a-d6e217e5ec61\"\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>Download your template<\/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=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-869866316-1064x810.jpg\" class=\"single-cta__image\" alt=\"Mobile payment\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-869866316-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-will-you-receive-the-tax-rebate\">How will you receive the tax rebate?<\/h3>\n\n\n\n<p>There are two ways to claim the rebate:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you are employed, you must include this in your income tax return for the year ending 28 February 2024 (from 1 July 2024).<\/li>\n\n\n\n<li>If you are a <a href=\"https:\/\/www.sage.com\/en-za\/blog\/tax-tips-for-side-hustlers\/\">provisional taxpayer<\/a> (i.e., self-employed), you will need to deduct this in your provision tax returns (February and August 2023) and in the final income tax return for the year (from 1 July 2024).<\/li>\n<\/ul>\n\n\n\n<p>It\u2019s important to note that you must pay income tax to receive the income tax rebate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-fine-print\">The fine print<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Only new and unused solar panels will qualify, and they can be installed as part of a new installation or as an addition to your existing solar system.<\/li>\n\n\n\n<li>Solar panels must have a minimum capacity of 275W per panel.<\/li>\n\n\n\n<li>The solar panels must be installed at a primary residence that is mainly used for domestic purposes.<\/li>\n\n\n\n<li>Installation must be accompanied by a valid Certificate of Compliance (COC) to ensure safety compliance.<\/li>\n\n\n\n<li>Solar panels must be part of a system connected to the residence.<\/li>\n\n\n\n<li>Solar panel costs will be eligible for rebates from 1 March 2023.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-solar-tax-incentives-for-businesses\">Solar tax incentives for businesses<\/h2>\n\n\n\n<p>The initial Section 12B capital allowance provides for <a href=\"https:\/\/www.sage.com\/en-za\/blog\/asset-depreciation-how-to-claim-tax-back\/\">accelerated depreciation<\/a> of 100% of the initial costs in the year the business started using the solar system.<\/p>\n\n\n\n<p>From 1 March 2023, this incentive will increase to an accelerated depreciation allowance of 125%.<\/p>\n\n\n\n<p>So, a company that invests R150,000 in a solar system can deduct the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>VAT of 15% is reclaimable on the total installation charge (subject to a valid VAT invoice being issued by the supplier).<\/li>\n\n\n\n<li>Income tax saving of 27% for companies.<\/li>\n\n\n\n<li>If the R150,000 is VAT exclusive, the income tax savings will be R40,500.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-fine-print-0\">The fine print<\/h3>\n\n\n\n<p>There is no limit on the amount that can be claimed for income tax purposes; however, the deduction will be for the initial costs of the solar system.<\/p>\n\n\n\n<p>By understanding how these incentives work and are calculated, businesses can make informed decisions about the financial viability of investing in solar power. They can also accurately calculate the return on investment of a solar panel installation.<\/p>\n\n\n\n<p>What\u2019s more, by taking advantage of the available incentives, businesses can reduce their carbon footprint, save money on their energy bills, and increase their bottom lines.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\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\">Get your free cashflow template<\/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>Download our free cash flow forecast template to help you run your business and achieve your goals<\/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-7d24dde7-b594-451e-bf9a-d6e217e5ec61\"\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>Download your template<\/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=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-869866316-1064x810.jpg\" class=\"single-cta__image\" alt=\"Mobile payment\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-869866316-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"single-cta gated-content\">\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\">The quick guide to payroll compliance<\/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><!-- wp:paragraph --><\/p>\n<p class=\"\">Get the latest expert advice on managing and maintaining payroll compliance and staying on top of tax and legislative changes.<\/p>\n<p><!-- \/wp:paragraph --><\/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-f5d00389-a6c9-4a21-9eb4-7330554da4d8\"\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>Download guide<\/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-1283894303-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1283894303-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\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>Learn about the tax incentive programmes for renewable energy in South Africa, including solar panel rebates for individuals and businesses. By understanding the solar tax rebate calculations, individuals can benefit from a 25% rebate on the cost of new or unused solar panels, up to a maximum rebate of R15,000. Meanwhile, businesses can take advantage of an initial Section 12B capital allowance that provides for accelerated depreciation of 100% of the initial costs in the year the business started using the solar system, increasing to 125% from 1 March 2023.<\/p>\n","protected":false},"author":1340,"featured_media":69694,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[35,25],"tags":[],"business_type":[2,5],"lilypad":[],"context":[],"industry":[],"persona":[15],"imagine_tag":[51,73,85,86],"coauthors":[450],"class_list":["post-70777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-money-matters","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-za","author_name":"Jasper Basson","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1278948452.jpg","imagine_tags":{"51":"Accountants","73":"Money Matters","85":"Small business","86":"Start up 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\/70777","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\/1340"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=70777"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/69694"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=70777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=70777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=70777"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=70777"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=70777"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=70777"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=70777"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=70777"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=70777"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=70777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}