Solar-powered home investment
During the SONA a few weeks ago, President Cyril Ramaphosa discussed the importance that solar energy will play in the future of South Africa energy generation and how the government plans to utilise this alternative source of electricity generation to assist in essentially fixing the energy crisis that South Africa is currently facing.
Many of us have been waiting with bated breath to hear what our finance minister, Mr Enoch Godongwana had to say about the proposed rollout of a solar energy plan. Does it in fact include tax incentives? You might be wondering what are tax incentives?
A tax incentive, according to Collins dictionary is a measurement that a government has put in place to try and encourage individuals to spend or save money by reducing the taxes that are paid.
Minister Godongwana presented the national budget speech on the 22 February 2023 and had the following to say with regards to the plans put in place to combat the energy crisis we are facing.
Tax incentives will in fact be put in place as of 1 March 2023. These incentives aim to encourage individuals in the domestic sector to have solar panels installed. With regards to domestic use of solar panels the tax incentives will work as follows: Private households that have rooftop solar panels installed from 1 March 2023, will be able to claim a rebate of 25% of the total cost of the panels, up to a maximum of R15 000. Now to be able to qualify one will need to ensure that the panels purchased are installed at a private residence and they need to be accompanied by a compliance certificate stating that installation took place after 1 March 2023 and before 29 February 2024. Rebates will only be available for PV solar panels and not for inverters or batteries.
Having PV panels installed after 1 March 2023 is not the only condition that needs to be met, on the contrary, there are a few other conditions that need to be met. These include: Only new and unused solar panels will qualify, solar panels with a minimum capacity of 275W per panel will qualify, no other components of the system and portable panels will be considered to qualify, only solar panels installed at a domestic residence which is mainly used as such will be considered for this specific tax incentive and lastly only panels that form part of the system that is connected to the mains distribution will be considered viable.
Along with all the positives that solar energy is providing it's users, there is naturally a downside too. In this case criminals have upped their game and have resorted to including solar panel theft to their repertoire. This new criminal activity mostly takes place during the day when home-owners are out and about. Now with this being said there are a few tips according to Fidelity ADT with regards to how you are able to curb the theft of your solar panels.
- A well-lit garden is a safer garden.
- Barrier security such as alarm, beams, electric fence etc are always good options to have in place.
- Ensure that all tools and equipment are packed away out of sight.
- Ensure that wheelie bins, stepladders and chairs are packed away out of sight. Criminals use these as a means of gaining access to your roof or climbing your wall.
- Join the local neighbourhood watch group.
- Ensure that shrubs and trees are trimmed so that criminals cannot use these as places to hide.
Although times seem to be slightly uncertain with regards to the energy crisis and what the future holds, solar energy is a great investment for your household as well as for the planet.
