Navigating South African tax incentives and rulings can be complex, but they offer substantial benefits for companies and investors in renewable energy. Although the personal solar energy tax incentive has ended, Section 12B remains active, providing considerable advantages. The South African Revenue Service has clarified these benefits through recent rulings and BCR 88, which detail the eligibility criteria for such claims.
Section 12B allows for up to 100% immediate depreciation on capital investments in renewable energy equipment, covering solar PV panels, battery storage, and related infrastructure. Additionally, Section 12BA offers a 125% allowance for new assets until March 2025, although one must choose between the two sections.
Renewable energy systems play a key role in providing reliable electricity, particularly during peak demand periods. The incentives under Section 12B encourage investment in this sector, offering significant tax advantages. Understanding eligibility and staying informed on the latest rulings is essential for maximizing returns and contributing to sustainable development.
Despite challenges like load-shedding, South Africa is making major policy changes in the power sector. MEB is ready to assist with tailored infrastructure solutions to meet your organizational needs and unlock significant renewable energy capacity.