Breakdown of solar energy incentives and financing
Dark times ahead
At the risk of sounding like a broken record: Loadshedding is here to stay. It won’t help to lose your temper or get political…it’s just a fact of life.
Luckily the state and our financial institutions have decided to give us a bit of a break…even though they can’t keep the lights on.
Firstly, the Solar (sustainable energy) tax incentive.
This incentive allows South African’s to claim 25% of the cost of a solar installation back from their taxes in the 1 March 2023 to 29 Feb 2024 financial year. (Up to a maximum of R15 000 per individual.)
For a full discussion on the minutia of this incentive, you can read these highly informative discussions on the matter.
Tax incentives for solar panels and renewable energy projects
Is the solar tax incentive worth it? We do the math
Solar tax incentives for individuals and businesses
The banks are stepping up.
If this isn’t enough incentive to start using our abundant South African sunshine to keep the lights on, a number of local banks are offering favourable financing options to home and business owners.
Al of our biggest banks now have dedicated solar financing instruments and they seem to be committed to keeping the economy (and our home lives) plugged in.
This highly informative and well researched article gives a full and detailed breakdown of what these financing plans entail and how you can get the best possible value for your money.
Eskomnews.co.za
The banks that currently offer solar financing in the form of personal loans include:
Al Baraka Bank (Certified Islamic bank)
Most of these financing options are still categorised as “personal loans”.
This means your individual credit score and your initial deposit might influence your monthly premiums and interest rates.
We particularly like the phrasing of the Absa product, which describes it as “loadshedding solutions” so you can use the financing for anything from a simple UPS (uninterrupted power supply) to a full hybrid solar system with panels, inverter and batteries. This gives you the freedom to pick the solution that works for you.
We know these financing options aren’t a cure all – for example many of them require that you own the property you want to do the installation on, and like any form of personal loan, bank statements and salary slips, or proof of income is required, as well as the usual RICA personal information (proof of residence and valid ID.)
Change is a good thing.
However, the facts that our banks are now even considering such specific types of financial instrument shows that times are changing. Whether it is driven by loadshedding or the greater global realization that we need to explore sustainable energy solutions, for the good of the planet, and the survival of the human race.
Make hay while the sun shines!
Financing, coupled with the generous tax rebate available as well as the general decrease in the cost of a solar installation, means that there is no better time to set yourself up for electrical success. Invest in your comfort while you feel good about what you are doing for the planet…Let the sun shine on you.
