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Home Advice South Africa’s Solar Panel Tax Rebate Explained

South Africa’s Solar Panel Tax Rebate Explained

The long-awaited residential solar tax rebate has made its debut in South Africa. However, there are rules, regulations and limitations to this rebate.

While many South Africans will benefit from this welcomed legislation, many will, unfortunately, not.

This article will explain how this system works, who is eligible, and the limitations, expectations and rules.

Chapter 1

Solar Panel Tax Rebate: Elegibility

Who can benefit from the Solar Panel Tax Rebate?

Any tax-paying person living in South Africa who is either a PAYE contributor or provisional taxpayer may apply for this rebate.

PAYE Contributors can apply during the 2023/2024 tax filing year, while provisional taxpayers can claim on provisional and final payments.

This tax rebate is specifically for residential properties and not businesses, so the primary function of the premises should be residential.

Sectional title holders may benefit from this tax rebate if the installation is permissible and the consumer can install solar panels on their sectional title. However, body corporates are not eligible for this rebate as it is only claimable by an individual person.

Chapter 2

The Tax Rebate Details

Incentives, expectations and limitations

This tax rebate only covers unused, fixed solar panels. It does not include inverters and batteries, as they can be used without solar panels, which goes against the objective of this rebate program which is to assist with additional generation capacity. Portable solar panels and diesel generators are also exempt.

You have ONE year to buy and install brand-new, unused solar panels with a minimum power rating of 275W.
The dates on which this tax rebate is valid are from the 1st of March 2023 – the 29th of February 2024.

Any solar panels bought and installed before or after this date do not benefit.

You can claim 25% of the total cost of your solar panels, with a maximum claim amount of R15,000.00 per person. So if your 25% exceeds the R15,000.00 maximum payout, you will only receive R15,000.00.

Chapter 3

Tax Rebate: Requirements

Important information.

If you are a PAYE contributor or a provisional taxpayer, you will need to meet the following requirements to claim your tax rebate:
  • Brand-new, unused solar panels
  • Either added to an existing system or a new installation.
  • Minimum solar panel capacity: 275W
  • Installed at a residential property
  • Your solar system must be connected to the mains of the residence.
  • Bought and installed between the 1st of March 2023 – the 29th of February 2024
  • A certificate of compliance indicating that the solar panels were installed for the first time between the one-year period shown above.
  • A VAT invoice for the solar panels only.
  • A proof of payment
Chapter 4

Solar Advice

Please be kind to us

While we’d love nothing more than for all our valued clients to benefit from this great opportunity provided by our government, we cannot change invoice dates for you so that they fall within the allotted time frame.

Not only is this deceitful, but it is also fraudulent, a crime for which we will be liable to face charges. As a business with many employees who rely on their work to support their families, we will not jeopardise our good name and risk their employment.

In any event, proof of payment is required, showing the date you paid for your solar panels.

Solar Advice was not privy to the timeline in which this rebate is valid, so kindly respect our employees who are doing their best to help you become energy independent.