Solar Tax Incentive South Africa
Solar Tax Incentive South Africa
Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.
Individual Solar Credit
For individuals, a 25% tax credit applies to the cost of solar panels only, capped at R15,000. Installation costs and inverters do not qualify for the individual credit.
Business Solar Deduction
Businesses can claim 125% deduction in the first year under Section 12B for renewable energy assets including solar, wind, and hydro. This is far more generous than the individual credit.
Requirements
For individuals, you need a valid VAT invoice showing panel costs only. The installation must be at your primary residence. For businesses, assets must be used for trade.
Frequently Asked Questions
How do I claim this deduction on my tax return?
Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.
What documents do I need?
Keep receipts, invoices, tax certificates, logbooks, and any other proof of the expense. SARS may request these during verification.
Can Admin Boss help with my deductions?
Yes. Admin Boss is a registered tax practice that can review your deductions, ensure compliance, and maximise your tax savings. Visit adminboss.co.za/need-more-info/.
Need Help With Your Tax?
Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.
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