South Africa’s new rebate program for personal rooftop photo voltaic arrays has a price range of ZAR 4 billion ($216.7 million). This doesn’t cowl inverters, battery storage techniques, or set up prices. Nevertheless, some trade analysts have already criticized the scheme for failing to totally tackle the nation’s load shedding drawback.
South Africa’s Finance Minister Enoch Godongwana stated final week that the Nationwide Treasury has launched a brand new rebate scheme for brand new rooftop PV installations in personal houses. People who set up new, unused rooftop photo voltaic panels from March 1, 2023, will be capable to 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 price range of ZAR 4 billion and was launched to deal with 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 stated in his price range speech on Thursday. “In response, we’ll act decisively to carry extra capability to the grid.”
The rebate scheme covers solely PV modules with a minimal capability of 275 W. Moveable photo voltaic panels are excluded. Photo voltaic modules have to be a part of techniques 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 techniques, inverters, diesel turbines, and set up prices are usually not coated by this system. The South African Photovoltaic Trade Affiliation (SAPVIA) has criticized this resolution.
“Photo voltaic panels alone can not shield finish customers towards loadshedding,” stated SAPVIA CEO Rethabile Melamu. “The motivation of photo voltaic panels is proscribed and it doesn’t reply to these households that should not have entry to devices for the acquisition of photo voltaic techniques. 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 influence for the typical family with out storage,” he stated. “SAPVIA is on file as exhibiting that a median 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 response to Melamu, SAPVIA accepts the inducement scheme, however it urges the federal government to seek the advice of with its consultants to design these applications extra successfully. Nevertheless, the federal government additionally introduced the enlargement of the renewable vitality tax incentive for companies, with a complete price range of ZAR 5 billion. From March 1, 2023, companies will be capable to cut back their taxable revenue by 125% of the price of an funding in renewables.
“There aren’t any thresholds on the scale of eligible tasks, and the inducement will probably be obtainable for 2 years to stimulate funding within the brief time period,” stated Godongwana.
The present methodology permits companies to deduct 50% of their renewable investments within the first 12 months, 30% within the second, and 20% within the third 12 months. It applies to PV tasks of greater than 1 MW in measurement, together with certified investments in wind vitality, concentrated photo voltaic, hydropower, and biomass. Buyers in PV tasks beneath 1 MW in measurement can deduct 100% of their prices within the first 12 months.
Underneath the expanded tax incentives, companies will be capable to declare a 125% discount within the first 12 months with out limits on the scale of the tasks.
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