Businesses within the hospitality sector that act quickly can still take advantage of the substantial 125% tax incentive available for solar energy projects completed and operational by the coming tax year end (February 28, 2025).
“To meet the deadline for this generous incentive, considering the preparation and construction timelines, hotels, lodges, game reserves etc should sign up with a solar operator by mid-October 2024 at the latest to realistically be operational before March 2025,” said Richard Flamand, Co-country Lead for South Africa at Swiss solar power developer, candi solar.
“The key to success is partnering with the right solar developers offering end-to-end, customised solar solutions tailored to the unique energy demands of manufacturing operations,” he added.
The solar tax incentive offers a 125% write-off for solar energy investments in the first year of operation with immediate savings.
"If you're thinking about going solar to achieve energy independence, ensure business continuity and save on electricity costs, now is the time to take action. Waiting will result in the limited-time tax incentive being lost to your business," noted Flamand.
Further business benefits
Renewable energy offers financial, environmental and operational benefits. Flamand highlighted the immediate energy savings through reduced electricity bills. “Generating your own power mitigates the impact of outages, ensuring business continuity. Furthermore, consuming renewable energy demonstrates commitment to sustainability, enhancing your brand image.”
How can a business access the solar tax incentive and unlock these long-term benefits? Flamand said a full-service approach reduces risks and allows businesses to remain focused on their core operations while real-time performance monitoring with proactive system maintenance ensures a reliable, efficient solution.
“The SARS tax incentive for solar power is a win-win for South African companies: it incentivises sustainable practices and reduces tax burdens while paving the way for a more secure, cost-effective energy future,” he pointed out.
