Solar panels installed on a private home
Not deductible
Solar panels on your own home are not a tax deduction, and the special individual solar rebate that did exist was a narrow, once-off credit that has closed.
There is no relief for this · Anyone
Your home is not a trade, so nothing about it is deductible under the general deduction rule. The only individual relief was the s6C solar energy tax credit: a rebate (a reduction of tax owed, not a deduction from income) of 25 percent of the cost of new and unused solar PV panels, capped at R15,000, for panels brought into use at a residence in a single time limited window that has since ended. It applied to the panels only, not to the inverter, the batteries, the mounting, the wiring or the installer's labour. If you did not claim it in the year the panels came into use, it is not something you can add to a later return.
Where people go wrong
People install a full solar system, add up the whole invoice including inverter, batteries and labour, and claim 25 percent of that. Only the panel line on the invoice ever qualified, and only inside the closed window. The second trap is thinking it is still available: it is widely repeated online as if it is a permanent benefit.
Does buying it save you tax?
Solar on a private home is an electricity and lifestyle decision, not a tax decision. There is no ongoing tax relief for it. Buy it because you want power during load shedding and lower bills, not because you expect SARS to fund a quarter of it.
Authority s6C
excluded by Salaried employees cannot deduct ordinary work costs
governed by Solar panel rebate for individuals
Energy
Research, not advice.
This has not yet been checked against the Act or a SARS guide, so treat it as a starting
point and a question for your practitioner, not a claim you can make.
Solar panels installed on business premises
Capital allowance
This is the real one: solar generation assets used in a business get an accelerated capital allowance, and small scale plant is written off in full in the first year.
A specific capital write-off applies · Sole proprietor or freelancer
Section 12B gives an accelerated write-off for machinery and plant used by the taxpayer in the production of income for generating electricity from renewable sources. Solar photovoltaic plant below a defined generation capacity threshold is written off entirely in the year it is brought into use; larger installations are spread over a short period rather than the normal wear and tear life. A temporary enhanced version of the allowance (s12BA) also existed for assets brought into use in a limited window: confirm whether your bring-into-use date falls inside it. This is a genuinely different regime from the individual rebate in R-SOL-001 and the two must not be mixed up.
Where people go wrong
The asset must actually be used in the production of income and brought into use, not merely paid for or delivered. A deposit paid in one tax year for a system commissioned in the next does not accelerate the claim into the earlier year. Separately, if you later sell the property or the plant, a recoupment is triggered on the allowance you already took: see R-BUS-015.
Does buying it save you tax?
Yes, this is one of the few genuinely strong tax plays in the list. A full first-year write-off means you recover your marginal rate on the whole cost immediately instead of over many years, and the business was going to spend the money on electricity anyway. It still is not free: you get back your rate, not the price.
Authority s12B
excluded by Recoupment when an asset is sold
governed by Renewable energy allowance for business
may unlock Input tax on capital goods
Energy
Research, not advice.
This has not yet been checked against the Act or a SARS guide, so treat it as a starting
point and a question for your practitioner, not a claim you can make.
Solar pumping system on the farm
Capital allowance
Solar panels and inverters that run farm pumps are business assets with an accelerated write off, and there are two possible regimes so the better one should be chosen deliberately.
A specific capital write-off applies · Farmer
A solar installation used in the farming operation can fall under the farming machinery allowance or the renewable energy allowance for business, both of which are faster than ordinary wear and tear. Mounting structures, cabling and the inverter usually go with the panels. The residential solar rebate for individuals is a different thing entirely and does not apply to farm production assets.
Where people go wrong
Claiming a system that mainly powers the farmhouse as a farming asset. If the array runs the house and the pump, apportion. Farmers also try to claim the individual solar rebate as well as the business allowance on the same panels.
Does buying it save you tax?
This is one of the genuinely strong ones. Accelerated relief plus a real reduction in diesel and Eskom cost. Still, buy the system you need for the pumping load, not the biggest one your accountant can write off.
Authority s12B
excluded by Solar panel rebate for individuals
governed by Renewable energy allowance for business
Farming
Research, not advice.
This has not yet been checked against the Act or a SARS guide, so treat it as a starting
point and a question for your practitioner, not a claim you can make.
