Investment in renewable energy will be a fundamental business decision in 2023 and beyond: it is the most direct solution for South Africa’s private businesses to improve their energy security situation.
The specific incentives under the Income Tax Act include benefits linked to energy efficiency savings, the purchasing of renewable electricity generating equipment and acquiring a new and unused environmental treatment and recycling asset, amongst others. Green incentives can help private businesses achieve Environmental, Social and Governance goals which, in turn, is essential for addressing our country’s social challenges. The country’s power situation is severely affecting economic growth and jobs at a time when the country urgently needs to recover from the aftereffects of the Covid-19 crisis to retain its competitiveness and attractiveness.
One of the benefits that can potentially unlock more solar installation in commercial and residential buildings is the concept of net billing. This would compensate prosumers based on the actual market value of electricity. This is achieved by balancing what the prosumers consume to keep their lights on with the surplus that they inject into the grid.