South Africa extends Section 12L Energy-Efficiency Tax Incentive to 2030, supporting business energy savings and carbon reduction.
The South African government announced it has extended the Section 12L Energy-Efficiency Tax Incentive by five years, moving its expiry date from 31 December 2025 to 31 December 2030 on 14 August 2025.
The incentive allows businesses to claim deductions for verified energy savings from efficiency measures such as upgraded machinery, lighting, insulation, and process heat recovery, reducing operational costs and improving building management.
Since 2015, the programme has saved 34.47 TWh, worth over R29 billion.
Previously set to expire in 2019, the deadline was extended to 2022, then 2025, in response to private sector demand and the impact of load-shedding.
The extension aims to encourage further investment in energy efficiency, support national energy security, and reduce carbon emissions. Compliance with Energy Performance Certificate requirements by 7 December 2025 remains relevant for certain building classes.
Earlier, the South African Revenue Service (SARS) released an updated Interpretation Note 95 (Issue 3) on the deduction for energy efficiency savings of 4 July 2024.
