Finance minister Enoch Godongwana announced in his budget speech that households could claim up to R15,000 in tax rebates starting from March 1 for installation costs of photovoltaic rooftop solar panels.
“Individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15,000. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive will be available for one year,” said Godongwana. Treasury explained in the Budget Review that the 25% tax rebate for households was available only for solar panel installations, not inverters and batteries.
Treasury is also expanding existing incentives to encourage businesses to invest more in renewable energy sources such as solar, hydropower, biomass and wind. Businesses can claim up to R337,000 in tax rebates in the first year of investment.