Are you looking to switch to renewable energy? Load shedding has changed how we think about access to electricity, and many are tired of living life around a schedule. If you need a small incentive to make a change, the government is finally offering one for solar panels. Let’s discuss the benefits of this incentive and how you can go green to get green!
Like many things involving tax or the government, several conditions must be met before qualifying for a rebate. Let’s consider what you will need to take advantage of this rebate.
Tax Rebate for Individuals
Those who pay personal income tax can take advantage of this tax rebate. The rebate is 25% of the cost of brand-new solar panels. The maximum rebate is R15,000, which equates to R60,000 worth of solar panels. These panels must have a minimum of 275W capacity.
The rebate only covers the photovoltaic panels, meaning the price of batteries, inverters, installation, and other modules isn’t covered. It also doesn’t apply to portable solar panels. The panels need to be purchased and proven to have been first used between 1 March 2023 and 29 February 2024. Several vital documents will be required to verify your solar panels’ purchase and installation. First – a VAT invoice showing the solar panel cost as a separate line item and proof of payment.
Second – a certificate of compliance is required. This certificate must show that a qualified electrician installed the PV panels and when they were first used to generate electricity, dated between 1 March 2023 and 29 February 2024.
PAYE taxpayers can claim the rebate during the 2023/24 filing season. For provisional taxpayers, the rebate is claimed against provisional and final payments for the same tax period.
By picking renewable energy, you aren’t just opting for more dependable electricity for your home. You are choosing cleaner, greener energy. By using solar, you are using less water for your energy. As an arid country, we should consider how we use – or misuse – our water. Drinking water gets used to cool generators and refine fuel. Generating power with solar panels doesn’t require any water!
On top of that, you are helping to reduce air pollution. Burning fossil fuels to generate electricity releases carbon dioxide, methane and other gases – such as sulfur dioxide – into the atmosphere. Air pollution leads to asthma, allergies, pneumonia, headaches and increased anxiety. They can also cause heart attacks and cancer. By using less power from fossil fuels, you are contributing less to these toxic emissions.
Air pollution isn’t just bad for the health of humans. Many of the gases released by burning fossil fuels add to the greenhouse effect, contributing to a warmer planet. We are already experiencing new records regarding the frequency and severity of natural disasters, from extreme droughts to intense floods and surprise storms.
If you want to lower your carbon footprint, have reliable energy, or just take advantage of a tax rebate while improving your property’s resale value, we hope you Go Green and Get Green soon!
Get a solar system installed by one of our friendly professional electricians. We do certificates of compliance, which is one of the required items needed to qualify for a tax rebate on solar panels.