New solar investment fund launches in South Africa with a 100% tax break – but there’s a catch

[Benedict A55h0le not]

Nice, I can expand my system with more panels and batteries, lol indeed.

If it is like it seems it is, then you could have saved the initial purchase money if you just waited. Maybe there will be a "retro" tax rebate included, but it was not mentioned in the article.

 

[Messugga]

So the way I read this, is that you are investing into this fund, and the fund will pick the projects to invest the capital in.

It won't be your home solar system necessarily.

Yep, looks like just another flavour of Section 12J funds.

 

[3WA]

To me it looks like if you buy a R100k system, you basically get it for free by claiming it back from income tax.

Edit: LOL at people who already bought?

Not quite. If you’re in the super tax bracket (45%), you’ll only get 45% back, not the full amount spent. Less if you’re in a lower bracket.

That said, this article looks premature, and we still need proper clarity from government.

 

[Pegging]

I wonder if they are trying to copy this:

ELIGIBILITY​

To be eligible for the Federal ITC, you must own your solar system. If you have a lease agreement, the third-party owner gets the tax credit for that system. If the home that you want a solar system for is not your primary residence, you are still eligible for the tax credit as long as you own the property and it is not a rental. Here is a quote from the U.S. Department of Energy guide:

“Solar PV systems do not necessarily have to be installed on your primary residence for you to claim the tax credit. However, the residential federal solar tax credit cannot be claimed when you put a solar PV system on a rental unit you own, though it may be eligible for the business ITC under IRC Section 48.11”
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics – U.S. Department of Energy
The other piece of eligibility is knowing your federal tax liability. If this is lower than your ITC savings, you will be able to carry over the remaining credits to the following year. For example, using our $54,054 system example, you are eligible for $16,216.20 ITC. If your federal tax liability for 2022 is only $10,000, you will owe no federal taxes that year, and in 2023, you will be able to use the extra $6,216.20 to reduce your tax liability.

How to Claim the Solar Panel Tax Credit (ITC)

Your guide to understanding the Solar Panel Tax Credit (ITC)

everlightsolar.com

 

[Spizz]

If it is like it seems it is, then you could have saved the initial purchase money if you just waited. Maybe there will be a "retro" tax rebate included, but it was not mentioned in the article.

In the meantime I'm saving R3k a month and loadshedding is a thing of the past.

If it is a R100k for home use, then that's me off grid thank you very much.