Budget 2023: Members of the public that install rooftop solar panels will soon be incentivised for their efforts to beat rolling blackouts.
This is according to finance minister Enoch Godongwana, who today confirmed government’s plans to introduce a new tax incentive for installing rooftop solar panels.
His pronouncement comes as ailing Eskom has struggled to keep the lights on, pushing load-shedding to stage six from the weekend.
Godongwana’s budget, delivered at the Cape Town City Hall today, saw National Treasury allocate Eskom R254 billion in debt relief, in response to the energy crisis.
The minister noted record levels of load-shedding were experienced in 2022, with 207 days of rolling blackouts compared to 75 days in 2021.
He commented: “As announced by the president, we will also introduce a new tax incentive for individuals to install rooftop solar panels to reduce pressure on the grid and help ease load-shedding.
“Individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15 000. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive will be available for one year.”
According to Godongwana, changes to the Bounce Back Loan Guarantee Scheme are also proposed to incentivise renewable energy, rooftop solar, and address energy-related constraints experienced by small and medium enterprises (SMEs).
“Government will guarantee solar-related loans for SMEs on a 20% first-loss basis.”
Treasury’s Budget Review document shows R4 billion in relief has been set aside for individuals that install solar panels, and R5 billion to companies through an expansion of the renewable energy tax incentive.
A further response from government towards the energy crisis is amending the bounce-back scheme to address energy-related constraints hampering businesses’ recovery from the COVID-19 pandemic, states the Treasury document.
As part of the amendments, government will guarantee solar-related loans for SMEs, commercial banks will be permitted to borrow directly from the scheme to facilitate the leasing of solar energy equipment to small businesses, and small businesses installing solar will be able to borrow finance for working capital.
These amendments will be finalised by May, it notes.
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