There are two categories of tax relief and it is important to understand the distinction between them:

• Relief for business premises.
• Relief for residential premises.

This is not the distinction that is defined in the Income Tax Act, but I choose it because some people think that because they’ve installed the system at their residence for the benefit of their business, they can claim the first of the above. Not so, because the s12BA of the income Tax Act states that the premises must be used mainly for business purposes in order for that section to apply.

OK so what are the benefits?

• Business – 125% of the cost of the entire installation (solar, batteries, invertor) can be allowed as a tax deductible expense in the year of installation, which must be between 1 March 2023 and 28 February 2025.
• Residential – A tax deduction of 25% of the cost of the solar panels (only) up to a maximum of R15 000 can be claimed for the Feb 2024 tax year, provided the installation was done in that tax year. There are other relatively trivial conditions which you can find in s6C of the Income Tax Act.