Out of interest, since Section 12B does not apply to individual tax payer and their income tax returns, do you guys know of any expense that can be claimed on your Personal income tax return with regards to a solar installation? I asked taxtim.co.za and their feedback so far was that a percentage of it can be claimed for you home office electricity, but no feedback as of yet as to how to calculate the portion. 

 

 

Your solar system would be of a capital nature so the terminology for individuals work be different. 

Best I can think of right now is to determine the fair wear and tear value and use this as the deduction. 

Example. If your system cost R100k and expected useful life is 10 years,the wear and tear value of R10k per year could be used. Prorated to the square metres of you home office. 

The same can be applied if you had to make any capital investments like renovating to have a home office. 

 

Another option is to look at your total PV production and use the rates charged by municipality for electricity and pro rate for your home office. So if you produced 5MWh for the tax year and 10% is for your home office, then 500kWh*average municipal tariff for your area = tax deductible amount. 

Hi. If you have a business and want to install solar. Inverters and batteries for your business but cannot use the roof so you just go for inverters and storage can you still claim from the 12b?