New rooftop solar tax breaks come with a huge catch

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New rooftop solar tax breaks come with a huge catch
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Municipalities warn parliament of the negative implications of the new solar tax incentive announced during the Budget Speech in February.

The government’s new solar tax incentive could strip local municipalities of their paying customers, adding to the already unsustainable costs of the power crisis by eroding their most important revenue source.

Salga, which represents local municipalities, said that their revenue from the sale of electricity is overburdened with the damage associated with persistent load shedding, and the move of reliable taxpayers off the grid would comprise municipalities’ ability to deliver services. “Cities incur a loss of income due to unserved energy whereby the overall average direct loss ranges from between R3 million to R6 million per stage of load-shedding per day,” said Matsie.

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