South Africa’s government has announced an expansion of its solar energy incentive programme in 2025, doubling the tax rebate amount for households installing rooftop solar systems. Amid persistent power outages and pressure to transition to cleaner energy, this move comes as a welcome incentive to help citizens reduce reliance on Eskom while saving on electricity costs.
What’s New in 2025?
Under the revised rebate scheme, households can now claim up to R30,000 for qualifying solar panel installations up from the previous R15,000 cap. This rebate applies to new panels installed from January 1, 2025, and must be claimed through a tax deduction when filing with the South African Revenue Service (SARS).
Who Qualifies and What’s Covered?
To be eligible, the solar systems must be installed on residential properties and must be connected to the home’s electrical system. Battery storage systems and inverters are not currently covered under this scheme, keeping the focus purely on solar energy generation. The installer must also be accredited to ensure safety and quality standards.
Easing the Load Shedding Burden
This expanded rebate comes as load shedding continues to disrupt daily life and economic productivity. By helping more households transition to solar power, the government aims to reduce demand on the national grid and offer a more sustainable solution to South Africa’s ongoing energy crisis.
A Win for Climate and Wallets
Besides easing pressure on Eskom, this rebate also plays into South Africa broader climate commitments. More households investing in solar means less reliance on coal, fewer carbon emissions, and significant long-term savings. For many South Africans, the enhanced rebate is a real incentive to switch to cleaner, more reliable power.