SARS Solar Tax Rebate South Africa: The Section 6C Individual Credit

Key Takeaways

• The SARS Section 6C solar tax rebate for individuals expired on 29 February 2024.
• It allowed individuals to claim 25% of the cost of new PV panels, capped at R15 000.
• Only new and unused solar PV panels with a minimum 275W design output qualified.
• Batteries, inverters, installation costs, and other components were specifically excluded.

The SARS Solar Tax Rebate for Individuals has Expired

The solar energy tax credit for individuals, introduced under section 6C of the Income Tax Act 58 of 1962, is no longer available. This incentive was a temporary measure designed to encourage households to invest in clean electricity generation capacity. The statutory period for panels to be brought into use for the first time was from 1 March 2023 to 29 February 2024.

What the Section 6C Rebate Covered (and What it Did Not)

The Section 6C tax credit allowed individuals to claim 25% of the cost of new and unused solar photovoltaic (PV) panels. This credit was capped at a maximum of R15 000 per individual. To qualify, solar PV panels needed a minimum capacity of 275W per panel (design output). The panels also had to be new and unused, meaning they had not been previously used for any purpose by any person.

The rebate was strictly limited to the cost of qualifying solar PV panels. Many other components commonly associated with a solar installation were specifically excluded.

Who Could Claim the Individual Solar Tax Credit

The Section 6C tax credit was available to natural persons who were liable for personal income tax. These individuals could claim the rebate against their tax liability.

The panels had to be installed at a residence mainly used by the individual for domestic purposes. This "mainly" requirement was met if more than 50% of the residence, measured by floor space or volume, was used for residential purposes during the year of assessment. The person incurring the acquisition cost of the panels also had to reside in the residence where the panels were mounted or affixed.

The credit was not available to juristic persons such as companies, entities of a similar nature, or trusts. Body corporates or home-owner’s associations installing solar PV panels in sectional title schemes or residential complexes were also not eligible. If co-owners purchased panels, each person could claim the tax credit at the rate of 25% on their portion of the cost. There was no ownership limitation for the incentive, meaning installations by landlords or renters could be eligible, but only the party that paid for the solar panels could claim the rebate.

Requirements for Claiming the Rebate

For the Section 6C tax credit, solar PV panels had to be brought into use for the first time between 1 March 2023 and 29 February 2024. The solar PV panels also had to form part of a system connected to the mains distribution board of the private residence.

Proof of installation and compliance with regulations was mandatory. This required a Certificate of Compliance (CoC) in terms of the Electrical Installation Regulations, 2009. Generally, the date on the CoC was considered the date the panels were brought into use. If a CoC was issued after 29 February 2024 for panels installed within the qualifying period, satisfactory proof had to be provided that the installation was brought into use for the first time during the specified timeframe.

Taxpayers claiming the credit needed to keep specific records for five years from the date of tax return submission. These included:

• A VAT invoice showing the cost of the solar PV panels separately from other items, along with proof of payment. The invoice should reflect the number of panels purchased, the cost per solar PV panel, and the wattage of each panel.
• The Certificate of Compliance, evidencing that the solar PV panels were brought into use for the first time in the period from 1 March 2023 to 29 February 2024. The CoC must contain a certificate number, the registration number, and contact details of the electrical contractor.
• Proof of the date of installation of the panels and the date when they were brought into use.
• Proof that the installation was for a residence mainly used for domestic purposes by the natural person who acquired the solar PV panels.

The tax credit was claimed on assessment during the filing season for PAYE taxpayers, while provisional taxpayers could claim it against provisional and final payments. The credit reduced the natural person’s normal tax liability. Any amount exceeding the R15 000 cap was forfeited and could not be carried forward. Furthermore, a taxpayer could not claim under Section 6C if a deduction had already been allowed under section 12B or 12BA for the same asset. If panels were sold within one year of being brought into use, a claw-back of the rebate would apply. However, there was no recoupment if the house was sold after benefitting from the incentive.

What you can check yourself, and what you cannot

As the Section 6C solar tax rebate has expired, you cannot currently claim it. However, if you claimed it during the qualifying period, you are responsible for maintaining accurate records. You can check your own invoices, Certificates of Compliance, and proof of payment to ensure they meet the SARS record-keeping requirements.

Any work involving the installation or modification of electrical systems, including solar PV panels, requires a Certificate of Compliance (CoC) issued by a registered person. This is not a task for a homeowner; it must be performed by a qualified and registered electrical contractor.

What the published sources do not tell you

The official documents from the South African Revenue Service (SARS) and National Treasury explicitly state that the Section 6C individual solar tax credit was "only available for 1 year" and "from 1 March 2023 to 29 February 2024". These sources do not mention any extension, renewal, or replacement of this specific individual rebate. Any future incentives would typically be announced by National Treasury.

It is also important to note that this article focuses solely on the individual solar tax credit under section 6C. There is a separate renewable energy allowance for businesses (under section 12BA), which operates under different rules and is not covered by the documents referenced here. The two provisions are distinct and should not be confused.