- Where the Solar Incentive for Private Residences Falls Down
- A small tweak to the incentive will result in a ‘payback’ to Government
- Let’s replace taxpayer cash to Eskom with Taxpayer Electricity to the Grid
The recently introduced Solar Incentives in the 2023 Budget Speech presented by Finance Minister Enoch Godongwana on Wednesday 22 February have been widely welcomed by business who will get a rebate on TAXABLE INCOME equal to 125% of their entire spend on renewable energy systems.
The Finance Minister also announced a 15% (to a maximum of R15 000 per individual) tax liability rebate for any private residence on solar panels ONLY – not on the inverter or batteries or Balance of System costs.
“We feel that the incentive for private households does NOT address or focus on the root cause of all our loadshedding problems, which is low generation capacity,” says Straton Solar.
“As a consequence we feel that the minister could have been more generous as follows: a 25% – 50% tax liability rebate to a maximum of R50 000 for Solar Panels connected to a Grid-Tie System,” says Straton.
“In this way the government will ensure that generation capacity is enhanced via many micro systems feeding back into the grid and government will be getting something back from the taxpayer enjoying the tax liability rebate,” concluded Straton.
Godongwana said the rebate is only available for solar PV panels, and can be used to offset the individual’s personal income tax liability for the 2023/24 tax year up to a maximum of R15 000 per individual.
For example, an individual who purchases 10 solar panels at a cost of R40 000 can reduce their personal income tax liability for the 2023/24 tax year by R6 000.
Other caveats to the solar incentive include:
- Only new and unused solar PV panels qualify to ensure that the capacity is in addition to what the country already has in place. The panels can be installed as part of a new system, or as an extension of an existing system.
- Only solar PV panels with a minimum capacity of 275W per panel (design output) qualify for the rebate.
- Other components of a system – batteries, inverters, fittings or diesel generators – and installation costs do not qualify. Portable panels will also not qualify.
- Solar PV panels must be installed at a residence that is mainly used by an individual for domestic purposes. The installation will have to be proved with a certificate of compliance in terms of the Electrical Installation Regulations, 2009 to ensure safety of the installation and compliance to electric regulations.
- The solar PV panels must form part of a system that is connected to the mains distribution of the private residence
Video: You Missed a Golden Opportunity at Payback for Your Solar Incentives Minister
https://youtu.be/CNTSSagaKZE
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