By Jessie Taylor
As the South African government tackles the energy crisis, National Treasury has announced two key tax incentives to encourage individuals and businesses to assist with energy generation.
Finance Minister Enoch Godongwana recently announced tax incentives for individuals who install solar rooftop panels at their homes, as well as a tax break for businesses that invest in renewable energy.
Through these two incentives, the Treasury said it would be offering R4-billion in relief provided for individuals that install solar panels and R5-billion to companies through an expansion of the renewable energy tax incentive.
President Cyril Ramaphosa announced in his recent State of the Nation Address that incentives to encourage individuals and businesses to invest in solar energy generation have become a priority, as they offer one means of reducing the impact of load shedding on households and the economy.
Individuals who install rooftop solar panels during this tax year will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15 000 per person. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive aims to encourage homeowners to contribute to electricity generation by allowing them to claim the rebate against their personal income tax liability.
The following conditions apply: