Electricity minister says solar tax incentive should be extended

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Electricity minister says solar tax incentive should be extended
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Electricity minister says solar tax incentive should be extended

The incentive, which offers households a tax credit for solar panel purchases, is set to expire in February next year.Electricity Minister Kgosientsho Ramokgopa argued that the household solar tax incentives, which were introduced earlier this year, should be extended beyond the current financial year.

He said his office was making the case to National Treasury for the incentive, which offered businesses and households tax credits on solar panel purchases, to be extended.He compared the solar tax incentive in South Africa to that in Vietnam, which he visited earlier this year. In South Africa, business and household solar tax incentives were announced in February as part of the national budget.

Households who spend money on solar panels currently receive 25% of their solar spend back as a tax credit. The rebate is capped at R15 000.More than double the value of solar panels were imported into the country in the first half of 2023 than in the whole of 2022., which revealed there was a four-fold increase in the maximum output of solar not contracted to the utility between March 2022 and June 2023.

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