Unlocking Savings: SARS Tax Rebate Incentives for Commercial and Industrial Solar Installations

Unlocking Savings: SARS Tax Rebate Incentives for Commercial and Industrial Solar Installations

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Unlocking Savings: SARS Tax Rebate Incentives for Commercial and Industrial Solar Installations

Unlocking Savings: SARS Tax Rebate Incentives for Commercial and Industrial Solar Installations


In the pursuit of sustainable energy solutions, South African businesses are turning to solar power as a beacon of hope amidst rising energy costs and environmental concerns. At the heart of this transition lies an enticing opportunity: SARS rebates for commercial and industrial solar installations. Today, we explore the benefits of these rebates and shed light on how Zero Point Energy can assist in navigating the process, from inception to SARS rebate submission.


Understanding SARS Incentives A Gateway to Savings


SARS (South African Revenue Service) offers incentives as part of its commitment to promoting renewable energy adoption and fostering a greener economy. For commercial and industrial clients, there is currently the Section 12B and more recently the Section 12BA tax rebate in terms of the Income Tax Act. These rebates can serve as a powerful incentive to invest in solar and other renewable energy generation infrastructure.


The SARS Section 12B rebate provides businesses with a financial boost through accelerated depreciation allowances that essentially offset a significant portion of the initial investment required for solar installations.This can be as high as 100% of asset value depreciated in the year of its procurement, essentially providing a lucrative tax saving.  Separately, businesses now also have the option to apply for a rebate on 125% the value of new renewable energy generation assets, which in most cases can amount to a 33.75% discount on the project cost, assuming standard corporate income tax rates as at May 2024.


The S12BA incentive program commenced in March 2023 and will only run up to the end of February 2025, so corporates looking to benefit must look to invest sooner rather than later. Note companies can’t benefit from both S12B and S12BA, only one can apply. A major potential benefit of S12BA is that the costs of battery storage and supporting electrical infrastructure can also be included in the renewable energy generation infrastructure rebate program if the project is structured, designed and installed in a manner that allows it to be compliant with the rebate requirements from SARS. These rebates undoubtedly makes solar energy more accessible and attractive to commercial and industrial clients, driving widespread adoption across numerous sectors.


Read more on what qualifies for the rebates here.


SARS Tax Rebate Incentives for Commercial and Industrial Solar Installations


Benefits Of Renewable Energy For Businesses


Cost Savings: By harnessing solar power and battery storage technologies, businesses can significantly reduce their reliance on grid electricity, leading to substantial cost savings over the lifespan of the solar system. As an example, solar PV + battery systems that are well-designed and installed in accordance with a client’s specific electricity usage needs can result in monthly electricity bill reduction of up to 80% – 90%.  With SARS rebates augmenting these savings, businesses can enjoy a quicker payback period and long-term enhanced profitability.


Energy Independence: Solar installations empower businesses to take control of their energy destiny, reducing exposure to volatile energy prices and grid disruptions. By generating their own clean energy on-site, commercial and industrial clients can enhance their resilience and safeguard against future uncertainties. Load shedding has been a major contributor to business failures in recent times owing to loss in operational hours, damage of equipment and material. With a solar PV and battery system, businesses can mitigate against this major risk, and allow themselves to thrive with energy independence.


Environmental Impact: Embracing solar energy not only benefits businesses financially but also contributes to environmental sustainability. By reducing carbon emissions and dependence on fossil fuels, businesses can play a pivotal role in mitigating climate change and preserving the planet for future generations. In the near future in South Africa, these environmental benefits will also provide financial benefit through easily exchangeable carbon credits and avoidance of carbon taxes.


Zero Point Energy: Your Partner in Solar Solutions


At Zero Point Energy, we understand the complexities of navigating the solar landscape, from financing options to regulatory requirements and end-to-end project execution. Our experienced team is dedicated to simplifying the process and empowering businesses to embrace renewable energy with confidence.


SARS Tax Rebate Incentives for Commercial and Industrial Solar Installations

Bank Finance Assistance:

We offer assistance in securing bank finance for solar projects, leveraging our network of trusted financial partners to tailor solutions that meet your specific needs. We have trusted relationships and and accreditations with most of the leading banks to offer a one-stop-approach to offer our clients a turn-key solar + battery storage offering from initial investigations to successful installation. Our aim is to provide our clients peace of mind that your renewable energy asset will be financed at competitive rates, and allow you to conserve your valuable cash flow to use elsewhere in your business.


SARS Rebate Procedure:

Navigating the SARS rebate process can be daunting, but with Zero Point Energy by your side, it becomes effortless. Our experts guide you through each step, from assessing eligibility criteria, selecting and choice of technology and equipment, the design & integration of applicable renewable energy generation assets, and finally in preparing and submitting the necessary documentation to your finance and accounting teams in line with SARS requirements.


Installation and Maintenance:

We understand that businesses are specialists in their own field and may not have the expertise or resources to focus on developing and maintaining renewable energy assets. This is where we come in! From initial consultation all the way to system commissioning and beyond, Zero Point Energy oversees every aspect of your solar & battery project, ensuring quality installation and optimal performance in the long. Our commitment doesn’t end with just installation – We further offer peace of mind to our clients via long-term operations & maintenance (O&M) services where we can monitor, inspect and maintain the assets on your behalf to maximise the lifespan and efficiency of your solar & battery infrastructure.


Let’s Embrace a Brighter Future Together


As South Africa marches towards a cleaner, more sustainable energy future, the time to act is now. With SARS rebates incentivizing solar investments and Zero Point Energy guiding the way, businesses can embark on a transformative journey towards energy independence and environmental stewardship. Let’s join hands and pave the way for a brighter tomorrow.

Contact us for a bespoke solution today


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