South Africa Imposes 10% Tax on Solar

South Africa imposes 10% tax on solar. The Minister of Finance Enoch Godongwana recently announced a 10% import tax on solar panels.

Amid a significant rise in the use of solar in the country, the South African government has applied a 10% import tax on solar.

Following an elevated load shedding in the first half of 2023, the country has experienced an installation of over 5,000 MW of rooftop across the country.

The increased use of solar and the following low demand on the grid are vital reasons that load shedding has been halted for over three months in South Africa – a rare occurrence considering Eskom’s poor performance over the last 15+ years.

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South Africa Imposes 10% Tax on Solar: Professional Perspective

According to Bryan Groenendaal from Green Building Africa, the 10% import tax is part of the South African National Renewable Energy Master Plan, which was announced by the now-separated Department of Mineral Resources and Energy.

The plan gives precedence to supporting local demand for renewable energy by unlocking market demand and system readiness, driving industrial development through renewable energy value chains and developing local competence in skills and innovation.

Importers, however, claim that panels made in South Africa are of low standards, and the country doesn’t have the technology to manufacture panels that the outside world would value.

Viren Gosai, General Manager at ArtSolar, mentioned that local PV production can aid national economic resilience by creating sustainable jobs and backing local education and training programmes.

Domestic production also lessens carbon emissions associated with transportation.

The country needs renewables. Even though 2023 saw a surge in the number of households that use solar in South Africa, experts, experts from Rhodes University said the change is not occurring fast enough.

Solar PV doesn’t contribute up to 5% of the country’s energy mix despite the sunny climate. Presently, less than 10% of households use solar power regularly.

The cause of this has been traced to financial impediments, as lower-income households didn’t have the collateral to get solar loans.

Additionally, some people believe that solar electricity isn’t as powerful as other sources and that solar panels are at increased risk of threat.


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