Solar Rebates in South Africa: What Still Applies in 2026

If you have read that South Africa pays you back a quarter of the cost of your solar panels, that was true for one tax year only. The home solar rebate has ended. This guide sets out what the rebate was, what still applies today for homes and for businesses, and how to plan a system without counting on money that is no longer on offer.

Key takeaways

• The SARS solar rebate for individuals covered new solar panels brought into use between 1 March 2023 and 29 February 2024. It has ended.

• The rebate was 25% of the cost of the panels only, capped at R15,000, claimed once on the 2024 personal tax return.

• Businesses can still claim Section 12B of the Income Tax Act on qualifying solar assets.

• The enhanced 125% business deduction (Section 12BA) covered assets brought into use between 1 March 2023 and 28 February 2025. It has also ended.

• Tax rules change. Check the current position with SARS or your tax practitioner before you rely on any incentive.

What the home solar rebate was

In the 2023 Budget, government announced a once off tax rebate to help households add solar panels. An individual who paid personal income tax could claim 25% of the cost of new and unused solar panels, up to a maximum of R15,000, against the tax they owed.

Who could claim it

• Individuals who paid personal income tax.

• Panels installed at a private home used mainly for living in.

• Panels that were new and unused, and connected to the home's supply with a Certificate of Compliance.

What it did not cover

The rebate applied to the solar panels only. Inverters, batteries, mounting and installation labour did not count, and neither did portable panels.

When it applied

Only panels brought into use between 1 March 2023 and 29 February 2024 qualified. The claim was made once, on the tax return for that year. Panels installed after 29 February 2024 do not qualify, and there is no replacement rebate for households.

What still applies for businesses: Section 12B

Businesses that invest in solar can still use Section 12B of the Income Tax Act. It lets a business deduct the cost of qualifying renewable energy assets faster than normal wear and tear would allow.

• Most business systems (there is a size limit, ask your tax adviser): 100% of the cost can be deducted in the year the system is brought into use.

• Larger systems: the cost is deducted over three years, 50% in the first year, 30% in the second and 20% in the third.

The system must be owned by the business and used in its trade. For a while there was also an enhanced 125% deduction under Section 12BA for assets brought into use between 1 March 2023 and 28 February 2025. That window has closed, so new systems fall under Section 12B.

What this means if you are planning solar now

For a home, plan the system on its own numbers: what it costs, how much of your own electricity it will produce, and what you pay Eskom or your municipality for each kWh today. Tariffs rise every year, so the value of every kWh you produce yourself tends to grow over the life of the system. That is the reason to go solar in 2026, not a rebate.

For a business, speak to your tax practitioner early. Section 12B can change the after tax cost of a system a great deal, and the timing of when the system is brought into use matters.

Check before you rely on it

• Read the current guidance on the SARS website, or ask your tax practitioner.

• Be wary of any quote that still promises the 25% home rebate. It is no longer available.

• Keep your invoices and your Certificate of Compliance. You need them for any claim and for insurance.

Frequently asked questions

Can I still claim the 25% solar panel rebate?

No. It only covered new panels brought into use between 1 March 2023 and 29 February 2024, claimed on that year's tax return. Panels installed since then do not qualify.

Did the rebate cover batteries and inverters?

No. It covered solar panels only, up to 25% of their cost and a maximum of R15,000.

Is there any tax benefit for solar today?

For businesses, yes. Section 12B allows a faster deduction for qualifying solar assets owned and used in the business. There is currently no equivalent rebate for households.

What happened to the 125% deduction for businesses?

The enhanced deduction under Section 12BA applied to assets brought into use between 1 March 2023 and 28 February 2025. It has ended. New business systems use Section 12B instead.

Where can I get a price for a system?

Start with an energy assessment. We look at how you use electricity and what your roof or site can take, then size a system around your numbers.