Solar Energy Tax Credit in South Africa

The credit was time limited

SARS guidance says the section 6C solar energy tax credit applied for a limited period from 1 March 2023 to 29 February 2024. It was aimed at natural persons who invested in qualifying solar photovoltaic panels. It is not a general ongoing solar deduction for every later year.

What qualified

The SARS note explains that the credit related to the cost actually incurred for qualifying solar PV panels. Other parts of a complete solar energy system, such as inverters, batteries and supporting structures, did not qualify under that credit.

Who could claim

The SARS guidance refers to natural persons liable for personal income tax. Carrying on a trade was not required for this specific credit. Taxpayers still needed proof and had to apply the rules for the correct year of assessment.

Records to keep

• Tax invoices showing the qualifying panels separately where possible.
• Proof of payment and installation dates.
• Certificates, specifications or documents showing the panels meet the requirements.
• Working papers showing how the credit amount was calculated.
• Copies of the submitted return, assessment and any SARS verification correspondence.

Current-year caution

If you are filing a later tax year, do not assume a solar claim is still available. Check the current SARS guide and the tax year before entering any amount. Get professional help if the installation was partly business-related, shared between owners or queried by SARS.

Sources to verify

Primary SARS references: SARS solar energy tax credit note and SARS guide on the solar energy tax credit.