Solar panel incentive: Time is running out

Government’s solar panel incentive window is getting narrower by the day.

National Treasury introduced the solar panel rebate in February last year to encourage households to invest in renewable energy – and ease the pressure on the country’s power grid.

However, there’s a catch – the incentive only applies to solar PV panels that are “brought into use for the first time” within the period from 1 March 2023 to 29 February 2024. This means the solar panels must be installed and a Certificate of Compliance issued by a master electrician before the deadline.

The home solar tax incentive allows households to claim a rebate of 25% on the cost of their new and unused solar panels, up to a maximum of R15 000.

READ MORE: Standard Bank’s LookSee first to launch Solar Loan

No extensions, says Treasury

In October, Electricity Minister Kgosientsho Ramokgopa said his department was advocating for the solar tax incentive to be extended beyond the February 2024 deadline and be expanded to include rebates on other solar system components such as inverters and batteries.

Unfortunately, his plea was unsuccessful with National Treasury telling Parliament’s Standing Committee on Finance that the timeline will not be changed as the intention of the rebate was to incentivise solar installations on an urgent basis and extending the deadline would have implications for the fiscus.

As for expanding the rebate to include batteries and inverters, National Treasury once again pushed back noting that these elements could be used in such a way as to increase the pressure on the grid.

ALSO READ: National Treasury clarifies solar panel tax incentives

Time to act

For those households who would like to benefit from the once-off solar incentive, LookSee’s executive head Marc du Plessis says an installation can still be done in time.

“The advantage of using LookSee is that we’re a one-stop solar provider. That means we cover the whole process from initial quote through to finance applications, installation and delivery of all documentation required by SARS and home insurers. And our Customer Care Team is always on hand to answer questions, manage applications, set schedules and ensure everything is on track,” he explains.

As a result, the company is able to work with determined customers to deliver the full solar journey in the space of 2 to 3 weeks, depending on finance requirements.

And getting started on this journey is as easy as heading to LookSee Solar to get a personalised, no-obligation quote based on your family’s electricity needs in minutes. Once you are happy with your system selection, the Customer Care Team steps in to schedule a site visit and free consultation with an experienced installer that has been vetted by Standard Bank.

A final quotation is delivered within days and the Customer Care Team again steps in to assist with finance applications and scheduling the installation to ensure you have no hassles along the way.

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What you’ll need to claim

Once your installation is complete, the Customer Care Team ensure you have everything you need to claim your solar tax rebate.

This includes:

• A VAT invoice with the specifications and cost of your solar panels separate from the other components of your system.
• Proof of payment.
• An Electrical Certificate of Compliance issued by a master electrician, detailing the system is connected to the home’s DB board and specifying the date the solar panels were brought into use for the first time.

Du Plessis notes that it’s important to submit this documentation to your homeowners’ insurer to ensure your new solar system is covered against lightning, weather damage, impact and theft.

ALSO READ: I’m planning to go solar, how do I make sure my installer isn’t dodgy?

What if you decide to sell?

Claiming the solar rebate doesn’t mean you’ll be confined to the same property indefinitely.

In the event you decide to sell your house, you won’t be required to pay back the incentive – but only if you sell it with the panels intact.

This is because the panels will likely be used by subsequent owners, and therefore continue generating electricity.

“There will however be a claw-back of the rebate if you sell the panel themselves within one year after they were first brought into use to counter potential abuse,” Treasury said.

NOW READ: Keeping it clean: How to maximize your solar system’s performance

This article is brought to you by LookSee.