Feb. 23, 2023

With all the talk surrounding the budget speech and solar incentives, the details have finally been disclosed. To be honest, given the current situation regarding electricity in SA, we were expecting more. But then again, we do live in a country where you should be expecting the unexpected. So without further ado, let's look at the details.

1. Who can claim?

Individuals ( this in not for businesses ) paying tax in in South Africa. Most of the people reading this should check this box.

2. How much can you claim?

You can claim a maximum of 25% of the cost of you solar panels ( not inverters or batteries ), capped at a maximum value of R15000.

If you you paid R20000.00 for your panels, for example, you can claim a rebate of R5000. If you paid R10000 , 25% would be R25000, however you would be capped at R15000.

This obviously comes with a few requirements that will be listed below. 

3. Requirements

• Only new or unused panels qualify. You can not claim for historic installations, but you can claim for additions to a current installation ( new capacity added ). 
• Only panels qualify. You can not include batteries, inverters or generators.
• Panels should be of a minimum capacity of 275W per  panel.
• Solar PV panels must be installed at a residence that is mainly used by an individual for domestic purposes ( your home should qualify for this ).
• The installation will have to be proved with a certificate of compliance in terms of the Electrical Installation Regulations,2009. This should be included in all solar installations, if not, the installation is not compliant and will not be able to be legally registered.
• The solar PV panels must form part of a system that is connected to the mains distribution of the private residence. •
• The rebate applies to qualifying solar PV panels that are brought into use for the first time in the period from 1 March 2023 to 29 February 2024. 

4. Installations: 1 March 2023 to 29 February 2024

We found this interesting. This unassuming little piece of info seems to reveal that this incentive will be some sort of trial and possibly very short lived.

Also bare in mind that you have to claim this rebate for the 2023/24 tax period. 

5. How to claim:

You need three documents:

1. VAT invoice that indicates the cost of solar panels as a separate line item ( we feel quotes should be presented like this, why hide this detail ).
2. Proof of payment
3. Certificate of Compliance evidencing that the solar PV panels were brought into use for the first time in the period from 1 March 2023 to 29 February 2024.

Conclusion:

Although not as high as we hoped for, making use of this rebate is definitely a no brainer if you are installing solar at your home this year. Will this, however, be enough to persuade someone to install solar? Maybe at the right price.

Make sure your installer is VAT registered, that the invoice indicates your panels as a separate line item, and that you get a dated certificate of compliance and you should be good to go.