JZA is here to advise you on the best way to go off-grid. Enjoy our tax tips and advice below!
Income tax liability decrease
If you have photo-voltaic solar energy of less than 1 megawatt you can claim an accelerated capital allowance of 100% in the year brought into use, even if the asset is only used for part of the year.
This means that your company’s income tax liability will decrease by the same value of the installed solar system. In effect it is the same as getting a 28% discount on the price of your solar system.
What costs are covered when purchasing or leasing solar?
- All Solar equipment (PV panels, combiner boxes, inverters and batteries)
- Foundations and supporting structures
- Project planning and installation
Financial benefits of installing solar
- If the system is bought with cash-upfront, the system will pay for itself in under 5 years
- If the system is financed, it will be cash-flow positive from year 2
- An accelerated capital allowance of up to 100% can be claimed in the first year
Contact Bryan Stewart at bryan@jza.co.za for assistance in this regard.
This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein.