SOUTH AFRICA INTRODUCED A TAX FRAMEWORK TO INCENTIVISE INDIVIDUALS TO INSTALL SOLAR PANELS AT HOME TO REDUCE DEPENDENCE ON ESKOM .
INDUSTRY WATCH
SOUTH AFRICA INTRODUCED A TAX FRAMEWORK TO INCENTIVISE INDIVIDUALS TO INSTALL SOLAR PANELS AT HOME TO REDUCE DEPENDENCE ON ESKOM .
South Africans faced a dark 2023 with a recordbreaking 332 days of load shedding last year , up from 205 days in 2022 , according to EskomSePush . In May , Bloomberg reported that South Africa was ahead of its target for cutting greenhouse gas emissions , mostly thanks to intense load shedding .
At the same time , South Africa ’ s rooftop solar capacity increased by 349 % from March 2022 to June 2023 , an unprecedented boom showing the extent to which private citizens and businesses are handling their own electricity needs .
Although the rapid household move to renewable energy sources is for reasons less celebrated , being borne out of necessity due to the country ’ s energy crisis , it is an achievement that presents a unique opportunity for South Africa to lead a global shift towards sustainable energy that is driven , at least in part , by individual households .
The rise in rooftop solar capacity shows how quickly South Africans can demonstrate resilience and innovation to advance the country ’ s much-needed energy transition . Not only do solar rooftop installations empower consumers with greater control over their electricity during load shedding , but they also simultaneously mitigate the severity of power outages when they happen .
Last year , South Africa ’ s Finance Minister introduced a tax framework for the 2023 – 2024 tax year to incentivise individuals to install solar panels at home to reduce dependence on Eskom . This was an acknowledgement of the crisis ’ s existence and some financial relief in the form of up to R15,000 tax assistance to help more households secure solar power .
With the solar energy incentives cut from the 2024 budget , consumers need to embrace solar as not just a necessity or a social conscience purchase , but also one that will help adjust the GDP deficit from load shedding , that according to the South African Reserve Bank , was reduced in 2023 by an approximate 1.8 percentage points . This , together with the potential of a national feed-in tariff framework , has the potential to be game changers locally .
Examples of the power of these approaches can be seen in Vietnam where feed-in tariff ’ s were successfully
Despite a gloomy 2023 for South Africa ’ s national grid , there were also some promising signs of cooperation and engagement between the private sector and government . The National Energy Crisis Committee , NECOM , framed under a partnership with Business for South Africa and backed by over 130 CEOs of the country ’ s leading companies , is a step in the right direction .
Ross Mains-Sheard , Co-Founder and CEO , Versofy SOLAR
www . intelligentcio . com INTELLIGENTCIO AFRICA 65