Tax rebate

solar panel rebate

SARS has introduced a tax rebate for taxpayers who have installed solar panels at their homes. The rebate is calculated at 25% of the cost of the solar panels to a maximum of R15 000.

The following requirements must be met in order to qualify for the rebate:

  • The panels must have been bought between 1 March 2023 and 29 April 2024.
  • The person who claims the rebate must have paid for the panels
  • The solar panels must be new when bought. A rebate won’t be granted for second hand/used panels.
  • The rebate is only applicable to the cost of the solar panels. The cost of the inverter, batteries and labour to install the panels can’t be claimed
  • The panels must have a minimum capacity of 275Kw per panel.
  • The panels have to installed as part of a system that is connected to the distribution board of the home.
  • The panels have to be installed at the primary residence of the taxpayer.

How to claim the benefit.

The total cost of the panels need to be added on the tax return, 25% will then be calculated. According to the official SARS website, a certificate of compliance(COC) and a copy of the invoice of the panel should be submitted as supporting documents. But I have a suspicion they will later on also request a bank statement or proof of payment to proof you paid for the solar panels yourself.

Home office expenses

Taxpayers can claim home office expenses if more than 50% of their income consists of commission. They can also claim this tax rebate if more than 50% of their duties are performed at home.

Some of the expense that can be claimed includes:

  • Rent
  • Repairs to residence
  • Rates and taxes
  • Electricity
  • Cleaning cost
  • Telephone
  • Internet
  • Stationary

How to claim the tax rebate.

The expenses have to be added. The dedicated working area must then be calculated as a portion of the total square meter of the residence. The rebate is then calculated according to the percentage of the area that the work space consists of. During an audit, SARS may request a photo of your work space as well as the floor plan of your residence.

Contact us if you need more info.

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