How the solar panel rebate system will work

DURING his recent Budget speech, Enoch Godongwana, the Minister of Finance, said South Africans wishing to install rooftop solar panels would qualify for a rebate.

He said individuals could claim a rebate of 25% of the cost of the panels up to a maximum of R15 000.

The National Treasury later explained how it would work.

It said the rebate system would be available for one year to encourage investment as soon as possible.

Individuals who pay personal income tax will be able to claim the rebate against their tax liability.

“This rebate is not intended for solar installations at business premises.”

The Treasury said the rebate would be on the cost of new and unused panels.

“For example, a person buys 10 solar PV panels, at a cost of R4 000 per panel (total cost of R40 000). That person would be able to claim 25% of the cost up to R15 000, so R10 000. A different person is able to buy 20 panels at a cost of R4 000 per panel (total cost of R80 000).

“The calculation of 25% adds up to R20 000, but they can only claim R15 000.”

The Treasury said the claim process included a VAT invoice that indicated the cost of the solar PV panels separately from other items, along with proof of payment.

A certificate of compliance showing that the solar PV panels were brought into use for the first time in the period from March 1, 2023, to February 29, 2024, was also needed.

It said the panels could 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 will qualify.

Other components of a system such as batteries, inverters, fittings, or diesel generators and installation costs will not qualify. Portable panels will also not qualify.