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Navigating the 2023 Solar Power Tax Incentive Program

All you need to know about the Solar power loan scheme


Early in the year 2023, the Minister of Finance, Enoch Godongwana unveiled an innovative tax incentive program designed to encourage individuals to embrace solar energy while providing a timely boost for investment in solar installations. Though the incentive awaits its formal inclusion in the annual tax amendments, there's much to uncover about it. In pursuit of taking control over your load shedding woes, you do not need to delay your plans waiting for legislative formalities. Stay ahead of the launch curve and discover everything you need to know about the tax incentive.


How does it work?


Participants can claim a rebate equivalent to 25% of the expenditure on new and unused solar photovoltaic (PV) panels, limited at a maximum rebate of R15,000 per individual. For instance, purchasing 10 solar PV panels at R4,000 each (R40,000 in total) qualifies for a rebate of R10,000. Meanwhile, purchasing 20 panels at the same unit cost (R80,000 in total) still limits the rebate at R15,000. This tax incentive is time-sensitive, being available for a duration of one year, to expedite investments.


Eligibility: Who Can Benefit?


The rebate is accessible to individuals who are subject to personal income tax, allowing them to reduce their tax liability through this incentive. It is crucial to note that the rebate specifically targets solar installations at residential premises, excluding business locations. Both renters and homeowners are eligible, but only the one who bears the cost of solar panels can claim the rebate.


Prerequisites: Ensuring Compliance


· Only new and unused solar PV panels qualify. 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.


Request for a 500+W Tier 1 TW PV panel quote with one of our distributors here: https://www.livoltek.co.za/dealer-locator


· 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.

· 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.



Claiming the Incentive: A Step-by-Step Guide

· Eligible individuals must provide SARS with a VAT invoice detailing the solar PV panel costs separately from other items and show proof of payment.

· A Certificate of Compliance is required, confirming installation between March 1, 2023, and February 29, 2024.

· PAYE taxpayers can claim the rebate during the 2023/24 filing season, while provisional taxpayers can claim during provisional and final payments.


This incentive focuses on maximizing government funds to enhance generation capacity. The goal is clear: to offer immediate clarity and encourage individuals to embrace solar energy. The government is spearheading this initiative to motivate households to invest in renewable energy, enhancing the country’s electricity supply capacity. Let's power up our future together with clean and sustainable solar energy.





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