February 22, 20233 yr https://www.news24.com/fin24/budget/budget-2023s-big-news-eskom-debt-solar-tax-bonanza-and-tough-choices-20230222 Households will get a tax rebate of 25% of the cost of new solar PV panels for the next year. The rebate can offset your income tax liability up to a maximum of R15 000. For example, if you buy 10 solar panels at a cost of R40 000, this means your personal income tax liability for the 2023/24 tax year will be reduced by R10 000.
February 22, 20233 yr Not much of an incentive. Saving income tax portion of 25% on panel purchase price only. The government is even more broke(-n) than I thought. Edited February 22, 20233 yr by Scubadude
February 22, 20233 yr 33 minutes ago, Scubadude said: Not much of an incentive. Saving tax income tax portion of 25% on panel purchase price only. The government is even more broke(-n) than I thought. Buy 4 panels get 1 free*
February 22, 20233 yr 3 hours ago, madness_za said: Households will get a tax rebate of 25% of the cost of new solar PV panels for the next year. The rebate can offset your income tax liability up to a maximum of R15 000. For example, if you buy 10 solar panels at a cost of R40 000, this means your personal income tax liability for the 2023/24 tax year will be reduced by R10 000. Spare a thought for the folks who spent money on panels prior to the new tax year. At least it's worth now considering extra panels.
February 22, 20233 yr Author Something is better than nothing. The incentives for business on the other hand...
February 22, 20233 yr SARS will make ORDERS more on the VAT they collect (from your typically installed inverter, battery & solar panel system) than the misery 15K MAX tax rebate on the panels.
February 22, 20233 yr 1 hour ago, PsyWulf said: Buy 4 panels get 1 free* OK I misread ... It is a rebate not a deduction. That's a bit better. Of course you still pay 15% VAT on those 4 panels, installation, battery, inverter. And you need to get a COC which otherwise may not be required. I'm still not excited about this. Edited February 22, 20233 yr by Scubadude
February 22, 20233 yr 1 hour ago, madness_za said: Something is better than nothing. The incentives for business on the other hand... Section 12B has been in force for years. Full depreciation in year 1. Not a subsidy but there is some cash flow advantage from the expedited depreciation. Edit: I see the deduction for businesses is now 125% for renewable projects from 1 Mar 2023 to 28 Feb 2025. And not just panels OK that is something. Edited February 22, 20233 yr by Scubadude
February 23, 20233 yr Hmm, then you must register your system and in the future they cannot get enough sin tax revenue so they might bring in a sun tax for pv users. Nope, my system will not be registered at the moment or any time soon.
February 23, 20233 yr Wait... So because i had my installation done a year ago, i get absolutely nothing??
February 23, 20233 yr 21 minutes ago, Chilly1249 said: Wait... So because i had my installation done a year ago, i get absolutely nothing?? That is correct... Did mine three months ago...hahaha
February 23, 20233 yr 1 hour ago, Matthys Koch said: That is correct... Did mine three months ago...hahaha My father in law did his 8 days ago 🤦
February 23, 20233 yr 2 hours ago, Vaal said: Hmm, then you must register your system and in the future they cannot get enough sin tax revenue so they might bring in a sun tax for pv users. Nope, my system will not be registered at the moment or any time soon. you do not have to register anything, as you can say it was installed at a rental unit. there is loopholes. just use them cleverly.
February 23, 20233 yr 20 hours ago, madness_za said: https://www.news24.com/fin24/budget/budget-2023s-big-news-eskom-debt-solar-tax-bonanza-and-tough-choices-20230222 Households will get a tax rebate of 25% of the cost of new solar PV panels for the next year. The rebate can offset your income tax liability up to a maximum of R15 000. For example, if you buy 10 solar panels at a cost of R40 000, this means your personal income tax liability for the 2023/24 tax year will be reduced by R10 000. In my mind it is pretty bleh. Just 1 more thing that will put you in the "audit" queue Edited February 23, 20233 yr by Gary Waterworth
February 23, 20233 yr I can see SARS giving people the run-a-round on this one. Panels not properely specified in the VAT invoice (remember break only applies to capacity greater than 275W). Panel price inflated on invoice. COC for installation incomplete. Your return goes in, you then get asked to up load supporting documentation. Geuss what, you thought you might get your R15k end of July 2024 now suddenly your whole return is being audited. Perhaps I'm being a cynic .. Anyway, this is better than nothing. Pity it did not happen a year earlier for me.
February 23, 20233 yr 14 minutes ago, Peter V said: Perhaps I'm being a cynic .. I'll go one further. This may just be a very smart move by the authorities to get a registry of solar users that they otherwise may have never known about and when the "Sun Tax" is introduced, they will know on which doors to knock first. 🙃
February 23, 20233 yr 1 hour ago, zsde said: I'll go one further. This may just be a very smart move by the authorities to get a registry of solar users that they otherwise may have never known about and when the "Sun Tax" is introduced, they will know on which doors to knock first. 🙃 Tinfoil hat on I agree with you. For the sake of R10k and audit crap I would probably be hesitant in applying for it.
February 23, 20233 yr I think the government is trying to get all of those who have solar in their data base, then it will be easy for them to do whatever they want. Think careful before you involve your system with the government, just my 2cent thought 😃
February 24, 20233 yr Does not compute. SARS does not rebate some of the required equipment such as fittings, inverter, installation costs, CoC - ONLY rebates the PV Panels. Quote WHY ONLY SOLAR PANELS, AND NOT INVERTERS, BATTERIES AND INSTALLATION COSTS? While an inverter and batteries are required to use solar panels, inverters and batteries can be operated without solar panels – in which case they offer no additional capacity to the system. The focus on solar PV panels is to maximise the use of limited government funds to get as much additional generation capacity as possible – and recognises that government will have to focus on a partial rebate of the components that are most directly linked to generation . This is why installation costs are not included either. - so you need inverter and installation and CoC for which SARS will offer no rebate. But: Quote WHAT ARE THE REQUIREMENTS? The installation will have to be proved with a certificate of compliance in terms of the Electrical Installation Regulations, 2009 to ensure safety of the installation and compliance to electric regulations (CoC) - so you need CoC for which SARS will offer no rebate The solar PV panels must form part of a system that is connected to the mains distribution of the private residence - so you need inverter for which SARS will offer no rebate Other components of a system – batteries, inverters, fittings and installation costs do not qualify. Portable panels will also not qualify - so you need inverter and installation and fittings and CoC for which SARS will offer no rebate The good part is that it's offset against your Income tax, so all those that have not registered to avoid tax will loose out.
February 24, 20233 yr 18 hours ago, zsde said: I'll go one further. This may just be a very smart move by the authorities to get a registry of solar users that they otherwise may have never known about and when the "Sun Tax" is introduced, they will know on which doors to knock first. 🙃 The sun tax will come from banckrupt local authorities not SARS. All they need is an aerial survey of properties and not only will they identify targets but also the quantum of tax they can apply on the basis of panel area measured.😒
February 24, 20233 yr 16 hours ago, THULANE said: I think the government is trying to get all of those who have solar in their data base, then it will be easy for them to do whatever they want. Think careful before you involve your system with the government, just my 2cent thought 😃 This may well be a view but look at Capetown, you need a permit before you install and as I have said before, all it requires is an aerial survey and you become part of that database anyway.
February 25, 20233 yr Somehow, I am skeptical about this. Could be a mechanism to have all solar system owners registered for a future Solar Tax. Note well, revenue will be lost for Eskom and municipalities if they motivate people to purchase solar systems. What would be the alternative for the lost revenue, solar tax. #somefoodforthought
February 25, 20233 yr On 2023/02/24 at 7:56 AM, Peter V said: This may well be a view but look at Capetown, you need a permit before you install and as I have said before, all it requires is an aerial survey and you become part of that database anyway. Thankfully not ALL of Cape Town is on COCT. Blows my mind I'm saying this and feels like I should be kicking myself in my own butt but I'm glad to be in a suburb supplied by Eskom and not COCT. COCT seems pretty draconian with their aerial surveillances apparently.
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