ELECTRICITY CRISIS
Solar or not to go solar is the question ? Larger scale solar and wind farms are often located in remote destinations based on where the best solar and wind resources are . This results in these projects being concentrated in specific areas , leading to grid access issues since these areas often have little to no grid capacity available . Though the tax incentives could serve to incentivise rooftop solar installations in more urbanised areas , where grid access may be more readily available , transmission and distribution systems may still be inadequately developed to accept power generated from these installations .
To understand the existing grid constraints better , and aid Eskom in its overall grid planning , the South African Photovoltaic Industry Association ( SAPVIA ) and the South Africa Wind Energy Association ( SAWEA ) recently announced the launch of the 2023 South African Renewable Energy
Grid Survey in conjunction with the State-owned power utility .
Despite Finance Minister , Enoch Godongwana , announcing a rebate of 25 % of the cost of solar panels ( up to a maximum of R15,000 ), installations remain expensive . According to SAPVIA , most average households would need to purchase a 5kW hybrid system with solar panels and an inverter which costs between R95,000 and R200,000 . Even R15,000 off this hefty price is beyond the means of many , but this is a positive step by government , even if it is a small step .
The solar tax rebate incentive of 25 %, like the medical credit system , is currently limited to the tax period of 1 March - 29 February 2024 . The tax benefits can only be claimed at the end of the tax year . To qualify , the solar panels must be purchased and installed at a private residence , and a certificate of compliance for the installation must be issued from 1 March 2023 to 29 February 2024 . It is important to note that the rebate is only available for solar PV panels , and not inverters or batteries , to focus on the promotion of additional generation .
SA Real Estate Investor Magazine APRIL / MAY 2023 80