- Posted by M Solar Power
- On July 15, 2017
- 0 Comments
- SARS, solar panels, Solar Power
With SARS Section 12b payback times for Solar PV are now even quicker… The accelerated depreciation allowance on renewable energy is now 100% in the first year. (100%).
As from 1 January 2016 SARS Section 12B of the Income Tax Act (South Africa) was amended from a three year (50% – 30% – 20%) accelerated depreciation allowance on renewable energy to an even quicker depreciation allowance of ONE year (100%). This is for commercial solar PV projects of less than 1 megaWatt, resulting in a greatly improved payback calculations for many system owners.
The reason for the change is to accelerate and incentivise the development of smaller photo-voltaic solar energy projects. This is also intended to help address the energy shortages facing South Africa in a more environmentally friendly way.