22/02/2023
Tax incentives for solar and other green energy
Businesses will now be able to deduct 125% of the cost of wind, solar, hydropower and biomass projects in the first year – with no limits on how much can be claimed, nor how big the project is.
For example, a renewable energy investment of R1 billion would qualify for a deduction of R1.25 billion from taxable income. This applies to all new projects between 1 March 2023 and 28 February 2025.
Households will get a tax rebate of 25% of the cost of new solar PV panels for the next year. The rebate can offset your income tax liability up to a maximum of R15 000. For example, if you buy 10 solar panels at a cost of R40 000, this means your personal income tax liability for the 2023/24 tax year will be reduced by R10 000.
To qualify, the solar panels must be purchased and installed at a private home, and a certificate of compliance for the installation must be issued from 1 March 2023 to 29 February 2024.
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