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FAQs: Solar panel tax incentive for individuals

HOW THE SOLAR PANEL INCENTIVE FOR INDIVIDUALS WILL WORK

THIS NOTE sets out the basic characteristics and requirements for the solar panel incentive announced by the Minister of Finance on 22 February 2023. This is meant to help individuals in their immediate decision-making, rather than postponing any solar installation until the legislative process can be finalised.
The aim of this note and the draft legislation to follow is to provide as much upfront clarity as possible, so that individuals do not feel they need to wait for the tax bills later in the year before making a decision to invest and benefit from the incentive.
The guidance provided is, nevertheless, subject to the outcome of the consultative process on the proposal and Parliament’s ultimate decisions on the legislation giving effect to the proposal.

What is the objective of the incentive?
Government proposes this programme to encourage households to invest in clean electricity generation capacity which can supplement electricity supply. The incentive will only be available for 1 year to encourage investment as soon as possible.

Who can claim the incentive?
Individuals who pay personal income tax can claim the rebate against their tax liability. This rebate is not intended for solar installations at business premises.

What can be claimed?
Individuals will be able to claim a rebate to the value of 25% of the cost of new and unused solar photovoltaic (PV) panels, up to a maximum of R15 000 per individual…

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