by | Apr 3, 2023

Renewable tax breaks for businesses – Summarized

  • From 1 March 2023, business will be able to reduce their taxable income by 125% of the cost of an investment in renewables.
  • The adjustment incentive will only be available for investments brought into use for the first time between 1 March 2023 and 28 February 2025
  • The incentive will be available for two years.
  • Business will be able to claim a 125% deduction in the first year for all renewable energy projects with no threshold on generation capacity.


A renewable energy investment of R1 million would qualify for a deduction of R1.25 million. Using the current corporate tax rate, this deduction could reduce the corporate income tax liability of a company by R337,500 in the first year of operation.

Rooftop Panel Tax Incentive – Summarized

  • The rebate applies to qualifying solar PV panels that are brought into use for the
  • first time in the period from 1 March 2023 to 29 February 2024
  • Only applies to the cost of the solar panels and not the inverter, batteries, or
  • installation costs.
  • Only new and unused panels will be considered.
  • Portable panels will not qualify.
  • The panels can be installed as part of a new system, or as an extension of an
  • existing system.
  • Only solar PV panels with a minimum capacity of 275W per panel qualify for
  • the rebate.
  • Tenants who install a solar system will be able to claim the rebate. Similarly, if
  • someone pays for the solar panels at their parents’ or children’s home the
  • purchaser should be able to qualify for the incentive.
  • Individuals will be entitled to claim a 25% credit on the cost of their solar panel expenses up to a maximum of R15 000 per person.

Documentation required to claim:

  • VAT invoice that indicates the cost of the solar PV panels separately from other items
  • Proof of payment
  • Certificate of compliance for the installation issued from 01 March 2023 – 24

For more information, please email: