On 8 March 2024, the South African Revenue Service (SARS) released guide for claiming this benefit under the new Section 6C of the Income Tax Act. South African residents can now claim a tax credit for installing brand new solar panels on their homes.
The major part of guide is outlined below:
- Get rewarded for going green: Homeowners can receive a refundable credit of up to 25% for the cost of their “new and unused” solar photovoltaic (PV) panels. There’s a minimum requirement though – each panel needs to have a capacity of at least 275 watts (W).
- Capped benefit: The maximum credit amount you can claim is 15,000 South African rand (roughly US$803).
- Time is ticking: This incentive is only available for solar panels installed and used for the first time between 1 March 2023, and 29 February 2024. So, if you’ve been considering solar power, now’s the time to act!
This initiative aims to encourage South Africans to switch to clean energy and reduce their reliance on the national grid.
