South African government sets requirements for solar rebates

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South Africa's National Treasury has revealed the requirements to access the ZAR 4 billion rebate program for residential PV, which was launched by the government in February. Under the scheme, individuals and homeowners are able to claim rebates equal to 25% of the cost of the solar panels, up to a maximum of ZAR 15,000.

“Pay-as-you-earn (PAYE) taxpayers will be able to claim the rebate on assessment during the 2023/24 filing season while provisional taxpayers will be able to claim the rebate against provisional and final payments,” the government said referring to the new requirements. “Individuals will be able to claim the rebate if they have a VAT invoice that indicates the cost of the solar PV panels separately from other items, along with proof of payment.”

In addition, the government now mandates a certificate of compliance for PV systems purchased between March 1, 2023, and Feb. 29, 2024, along with a certificate of compliance with the Electrical Installation Regulations, 2009.

The provisions specify that the solar panels eligible for the rebate can be installed as part of a new or existing system, with a minimum output of 275 W. Portable panels may not qualify for the program.

“There is no ownership limitation for the incentive, so installations by landlords or renters would be eligible, but only the party that pays for the solar panels can claim the rebate,” the government said. “If occupants of a sectional title are enabled to install their own panels, then the tax incentive applies as for all other individuals. However, a body corporate will not be able to claim this incentive.”

Storage systems, inverters, diesel generators, and installation costs will not be covered by the program. The South African Photovoltaic Industry Association (SAPVIA) has already criticized the changes to the scheme.´

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