The Rooftop Solar Tax Incentive for Individuals: What You Can Claim

While businesses have long been able to deduct solar costs through Section 12B, government also introduced a rooftop solar tax incentive aimed specifically at individual taxpayers, to encourage households to add generation during the energy crisis. Here is what households should understand about how it worked.

What the individual incentive offered

The rooftop solar tax rebate allowed qualifying individuals to claim a percentage of the cost of new and unused solar PV panels against their personal income tax, up to a capped amount, for panels brought into use within a defined period. Importantly, the rebate was aimed at the panels themselves rather than the full system, and it was a time-limited measure.

Because these incentives are introduced for specific tax years and can change or lapse, the exact percentage, cap and qualifying dates must be confirmed with SARS or a tax practitioner before you rely on them.

Who typically qualified

• Individual taxpayers (not businesses, which use Section 12B).
• New and unused solar PV panels installed at a residence.
• Installations supported by the correct documentation, including proof of purchase and a Certificate of Compliance from a registered person.

What to keep on record

Whether or not a rebate currently applies, it is always worth keeping good records of your installation:

• The invoice showing the panels and their cost.
• The Certificate of Compliance for the electrical work.
• Proof of when the system was brought into use.

These documents matter for any tax claim, for insurance, and for the future sale of your home.

The bigger picture

Tax incentives sweeten the deal, but the strongest reason households go solar remains the daily saving on an ever-rising electricity bill and freedom from load shedding. Read whether the numbers work for you in is solar worth it in South Africa.

This article is general information, not tax advice. Confirm the current rules with SARS or your tax practitioner, then get free quotes from verified installers.