SARS clarifies tax rules for surplus renewable energy under net-billing system.
The South Africa Revenue Service (SARS) released an updated Guide on 13 June 2025, outlining the tax implications for the net-billing tariff system applied to surplus energy generation. This publication provides clarity on how excess power contributions will be treated under tax regulations.
This guide provides general guidance on the tax treatment of credits due to taxpayers for excess power generated from renewable energy sources and exported via the grid.
Guidance is also provided on the tax treatment of the various expenses that are incurred by the taxpayer in generating such electricity. This guide is not an “official publication” as defined in section 1 of the Tax Administration Act 28 of 2011 (the TA Act) and accordingly does not create a practice generally prevailing under section 5 of that Act.
It does not consider the technical and legal detail that is often associated with taxation and should, therefore, not be used as a legal reference. It is also not a binding general ruling (BGR) under section 89 of the TA Act. Taxpayers requiring an advance tax ruling or a VAT ruling should visit the SARS website for details of the application procedure. This guide is based on the legislation as at date of issue.
