South Africa’s new rebate program for personal rooftop photo voltaic arrays has a finances of ZAR 4 billion ($216.7 million). This doesn’t cowl inverters, battery storage methods, or set up prices. Nonetheless, some business analysts have already criticized the scheme for failing to totally tackle the nation’s load shedding downside.
South Africa’s Finance Minister Enoch Godongwana mentioned final week that the Nationwide Treasury has launched a brand new rebate scheme for brand new rooftop PV installations in non-public houses. People who set up new, unused rooftop photo voltaic panels from March 1, 2023, will be capable of declare rebates equal to 25% of the price of the panels, as much as a most of ZAR 15,000 .
The brand new scheme has a finances of ZAR 4 billion and was launched to handle the intense load issues in South Africa.
“The file stage of load shedding was skilled in 2022 – 207 days of load shedding in comparison with 75 days in 2021,” the minister mentioned in his finances speech on Thursday. “In response, we’re appearing decisively to deliver extra capability to the grid.”
The rebate scheme covers solely PV modules with a minimal capability of 275 W. Transportable photo voltaic panels are excluded. Photo voltaic modules should be a part of methods linked to the principle distribution of personal residences. The rebate applies to certified photo voltaic PV panels used for the primary time between March 1, 2023, and Feb. 29, 2024.
Storage methods, inverters, diesel turbines, and set up prices are usually not coated by this system. The South African Photovoltaic Business Affiliation (SAPVIA) has criticized this choice.
“Photo voltaic panels alone can not shield finish customers in opposition to loadshedding,” mentioned SAPVIA CEO Rethabile Melamu. “The inducement of photo voltaic panels is proscribed and it doesn’t reply to these households that don’t have entry to devices for the acquisition of photo voltaic methods. Based mostly on a 25% cap this might translate right into a photo voltaic system of ZAR 60,000 [6 kWp to 7 kWp] which won’t make a significant impression for the common family with out storage,” he mentioned. “SAPVIA is on file exhibiting that a mean family can afford to purchase a 5 kW hybrid system, together with panels and battery storage starting from ZAR 95,000 to ZAR 200,000 relying on the elements used. “
In keeping with Melamu, SAPVIA accepts the motivation scheme, but it surely urges the federal government to seek the advice of with its consultants to design these applications extra successfully. Nonetheless, the federal government additionally introduced the growth of the renewable vitality tax incentive for companies, with a complete finances of ZAR 5 billion. From March 1, 2023, companies will be capable of cut back their taxable earnings by 125% of the price of an funding in renewables.
“There aren’t any thresholds on the dimensions of eligible tasks, and the motivation will likely be obtainable for 2 years to stimulate funding within the brief time period,” mentioned Godongwana.
The present technique permits companies to deduct 50% of their renewable investments within the first yr, 30% within the second, and 20% within the third yr. It applies to PV tasks of greater than 1 MW in dimension, together with certified investments in wind vitality, concentrated photo voltaic, hydropower, and biomass. Traders in PV tasks under 1 MW in dimension can deduct 100% of their prices within the first yr.
Beneath the expanded tax incentives, companies will be capable of declare a 125% discount within the first yr with out limits on the dimensions of the tasks.
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