Disclaimer: While Versofy has made every effort to ensure the accuracy of information (at the time of writing) regarding Solar Panel incentives announced by the Finance Minister in his 2023 Budget Speech, please note that the projected dates and currency figures may change at the discretion of the relevant Government departments. Please visit the National Treasury website for up-to-date announcements regarding this topic.
Solar panel incentives has been one of the most pressing topics facing our Government – which was finally delivered upon (at least on paper) in Finance Minister Enoch Godongwana’s 2023 Budget Speech and declarations.
The fiscal draws to an end before we start another, and with SA’s power crisis under the magnifying glass – it’s safe to say that the address had most on the edge of their seats.
Not long after the City of Cape Town came with their own Net metering incentive, President Ramaphosa and the aforementioned Finance Minister used the opportunity to relay some plans for greater SA. Stipulating that, for one year, the government will pay the public a part of their investment back when committing to a solar panel installation. This is to encourage growth and uptake within a specific timeframe in order to help alleviate the current strain on the national energy grid.
In plain words, and what many South African citizens have been eagerly awaiting news of, is that,
Individuals can claim solar panel incentive (rebate) of 25% of the cost of new Solar PV panels, up to a maximum rebate amount of R15,000.
Win-Win for Everyone
Eskom’s inability to guarantee output for as long as it has, makes for welcome news in terms of government tax incentives. The faster the uptake of solar systems by all South Africans that can, the faster there could be a way out for us all. Renewable energy helps everyone. Because we bank it on the sun.
Government Solar Panel Incentives – What Was Said?
Government announced that they will be handling R254 Billion of Eskom’s debt and that they are willing to pay you 25% back of what you spend for solar panels, capped at an amount of R15K.
This government tax incentive that relates to rooftop solar uniquely, does not include spending on the procurement of inverters, the correct DB wiring or batteries. Take into mind that panels are between 25% to 40% of your total solar investment, so this payback won’t be calculated to include the rest of the components required for a complete residential solar energy system. These payback claims can be made through provisional tax submissions or when you do your final SARS payments but won’t be extended into the 2024/25 fiscal unless it proves itself necessary to stay.
Also announcing changes to the Bounce Back Loan Guarantee Scheme, small and medium sized enterprises will be guaranteed solar loans from April 2023 at a 20% first-loss basis.
Boosting Productivity & Company Uptime
Undoubtedly, the urgency in the call to action hopes to see the public at large (those that can) take initiative and action right now. The rise of renewables enables the basic functions that most households and businesses can rely on to get the most out of their uninterrupted day. It can feed back into the already suffering grid and reduce your carbon footprint whilst saving you money significantly after the investment process, and over time.
Increasing Jobs & Building the Economy
The solar and renewable energy sector at large is unlocking jobs like never before because once you are plugged into the sky, the sun delivers a gift that keeps on giving. A gift that will solidify our structures and service providings again to serve growth in our industries. The announcement of the solar panel incentives scheme by Govt is a further step in the move towards green, which will undoubtedly have positive spin-offs for our economy, in terms of job creation and improved economic activity.
This is the new foundation we are moving towards as a global community, fast. Circumstances are expediting this movement and the growth is painful to say the least. But that too has an upside because we already know what lies on the other side beyond the enduring finish line.
What do Government Solar Panel Incentives Imply?
With some reports that you’ll have to qualify first and be willing to wait until mid 2024 to see physical payment, the early indication is there that the Government wants us to install solar but can’t provide all details yet. This is a developing story however and Versofy will make an effort to integrate this news into our service offering as soon as the technicalities and opportunities rising from it becomes clear.
What We Know
The highly-anticipated solar panel incentives scheme will carry some terms and paperwork that may result in not everyone qualifying for the scheme. Businesses, for example, will be accommodated under a different incentive known as the Bounce Back for example, whereby this current 25% incentive relates to solar systems for homes exclusively with solar panels that adhere to the following criteria:
- Not for portable use, must be connected to the mains of a residence.
- Must be installed securely.
- Panels must be new and unused.
- Panels must be rated to carry at least 275W of design capacity.
- Must carry certification from a verified installer.
Versofy SOLAR – In It For The Long Run
The budget speech that addressed the subject of Government solar panel incentives saw some political parties react positively while others felt felt unimpressed or unphased by it. It’s a (long overdue) step in the right direction, nonetheless, but there are lots of details to sort out in order to understand (or predict) the roll-out of these plans and how it will go. Every battery, every inverter and every solar panel helps at this stage and the faster the uptake happens, the faster we could hope to see a dip in the loadshedding stages.
At Versofy, we are committed to allowing more South Africans to switch to a hybrid solar solution for their home, through affordable, all-in-one solar subscription packages and pricing options. Consider us your vehicle to switch on to the sun and reduce your reliance on the national grid. We streamline the entry cost of solar systems in South Africa and barriers to entry through rent-to-own solar and Solar as a Service agreements that plan to help knock the upfront cost considerably.
Join the energy revolution by switching to Versofy Solar today!
