South Africa Launches Solar Tax Breaks

South Africa Launches Solar Tax Breaks
  • South Africa is making a concerted effort to rectify the load-shedding crisis, which has resulted in continuous power outages and blackouts in the country.

South Africa launches solar tax breaks as further measures to ensure the stability of electricity in the country despite the current challenge of load shedding.

The load-shedding crisis has plagued the country for a while now and the government has started working on addressing the issue.

The plan is to ameliorate energy security and reduce the country’s dependence on fossil fuels.

During his recent State of the Nation Address, President Cyril Ramaphosa announced that measures such as tax breaks and adjustments to the “bounceback” loan scheme would be used by South Africa’s National Treasury to enhance the distribution of solar energy.

According to him, the measures would help to establish their generation among private households and businesses.

Finance Minister, Enoch Godongwana is expected to denote how households and businesses can benefit from a tax incentive for rooftop solar, during the 2023 Budget on 22 February.

Check Out Other South African Updates

South Africa Launches Solar Tax Breaks: More on the Tax Breaks

The tax breaks as a post-Covid-19 scheme adjust the regime of the bounceback loan scheme to accommodate small businesses, helping them to enjoy tax breaks and also free up resources.

With the new scheme in place, Banks and financial institutions can borrow directly from the fund to facilitate the leasing of solar equipment to small businesses.

As a bigger picture, these regulations will allow South Africa to boost the availability of solar energy for businesses, with a much bigger picture of transitioning to renewable and clean energy.

Follow us on Twitter for more update


The information contained herein is general and is not intended, and should not be taken, as legal, accounting or tax advice provided by Taxmobile.Online Inc to the reader. This information remains strictly the opinion of Taxmobile.Online Inc.

The reader also is cautioned that this material may not apply to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of other tax factors if any action is to be contemplated. The reader should contact his or her Tax Advisers before taking any action based on this information.

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Taxmobile.Online Inc.

South Africa Launches Solar Tax Break