On 04 December 2024, the National Treasury advised that in the 2023 Budget Review, the National Treasury had announced the introduction of two renewable energy tax incentives. These are the solar energy tax credit (Section 6C of the Income Tax Act) for individuals who installed rooftop solar panels between 01 March 2023 and 29 February 2024, and the enhanced deduction for renewable energy (Section 12BA of the Income Tax Act) for businesses with assets brought into use between 01 March 2023 and 28 February 2025.
The solar energy tax credit was intended to encourage investment in clean energy generation to supplement energy supply. The enhanced renewable energy incentive aims to encourage private investment in renewable energy to alleviate the energy crisis. The solar energy tax credit and enhanced deduction for renewable energy have sunset clauses of 01 March 2024 and 28 February 2025, respectively.
National Treasury announced that it called on all interested parties to participate in an online survey on these incentives. The objective of the survey is to collect data that will assist in evaluating the overall effectiveness of renewable energy incentives in achieving their objectives. The data sourced from the survey will also be used to inform future tax policies.
The survey aims to provide all beneficiaries of the incentives and all interested parties with an opportunity to share their experiences regarding these measures.
The response deadline is 31 January 2025.
To access the survey, click this link: Renewable energy tax incentive review survey.