Can I still claim the solar tax rebate in 2026/27?

No. The Section 6C individual rebate (the famous R15,000 tax credit for solar panels at a primary residence) was a one-year-only incentive — it applied to solar panels brought into use between 1 March 2023 and 29 February 2024. It expired on that date and has not been extended. If you installed during that window, the claim should already have been made on your 2023/24 ITR12.

What was the Section 12BA enhanced business deduction?

A two-year incentive that gave businesses a 125% upfront deduction (instead of 100% normally) on the cost of new and unused renewable-energy assets brought into use between 1 March 2023 and 28 February 2025. Like Section 6C, this incentive has expired.

What solar deduction can a business still claim in 2026/27?

The standard Section 12B accelerated depreciation: 50% of the cost in year 1, 30% in year 2, and 20% in year 3 — fully writing off the asset over three years instead of the longer schedule for ordinary plant and machinery. There's no minimum or maximum size, and it covers solar PV, wind, hydro, and certain biomass installations used in the production of income.

Does Section 12B apply to the panels only or to the whole installation?

The full installation costs that are integral to producing the renewable energy: panels, inverters, mounting structures, batteries (if part of the system), wiring, and installation labour. Building work, roof replacement, or general electrical upgrades that aren't part of the energy-generation system aren't covered.

Solar tax incentives explained · invoicebook.co.za

The short version

South Africa had two short-lived solar boosters in 2023-2025: Section 6C (a one-year R15,000 credit for individuals) and Section 12BA (a two-year 125% business deduction). Both have expired. What remains is Section 12B, the standard accelerated 50/30/20 depreciation for business renewable-energy assets — generous, and unchanged from before the incentives were introduced.

Section 6C — individual rebate (expired)

The most-publicised of the three. From 1 March 2023 to 29 February 2024, individuals who installed solar PV panels at their primary residence could claim a tax credit of 25% of the cost of the panels, capped at R15,000.

Several catches:

Panels only. Inverters and batteries didn't count. Only the photovoltaic panels themselves.
New and unused. Second-hand panels disqualified.
Brought into use during the window. Both the purchase and the activation needed to fall between 1 March 2023 and 29 February 2024.
Connected to mains by a registered electrician with a Certificate of Compliance covering the new system.
Primary residence only — not a holiday home, rental property, or commercial premises.

The credit was claimed on the 2023/24 ITR12. If you installed during the window and still haven't claimed, you may still be able to via a request for correction — speak to a tax practitioner. If you installed after 29 February 2024, this incentive doesn't apply at all.

Section 12BA — enhanced business deduction (expired)

For businesses, the equivalent 2023-2025 incentive was Section 12BA: a 125% deduction in year one for new and unused renewable-energy assets brought into use between 1 March 2023 and 28 February 2025. So a company spending R1 million on a qualifying solar installation deducted R1.25 million off its taxable income in year one — at 27% corporate income tax, an effective tax saving of R337,500 against an actual cash outlay of R1 million.

Section 12BA expired on 28 February 2025. From 1 March 2025, businesses fall back to Section 12B (below).

Section 12B — the standing business deduction

This is the incentive that's still available and has been since long before the 6C/12BA additions. Section 12B accelerates depreciation for renewable-energy assets used in the production of income:

Year 1: 50% of the cost
Year 2: 30%
Year 3: 20%

Compare this with the 5-year straight-line depreciation that applies to ordinary plant and machinery, and the cash-flow advantage is significant. A R500,000 solar installation on a small business deducts R250,000 in year 1, saving R67,500 in tax (at 27% corporate income tax) immediately rather than R27,000 spread over 5 years under standard depreciation.

What qualifies for Section 12B

The asset must be a renewable-energy plant or component used in the production of income. SARS reads this broadly:

Solar PV (panels and inverters)
Concentrating solar (CSP)
Wind power
Hydropower up to 30 MW
Biomass with a primary use of generating electricity

The full installation cost is depreciable: panels, inverters, mounting, wiring, controllers, and installation labour. Batteries are deductible if they're an integrated part of the renewable-energy system (which most lithium-iron-phosphate setups are). General electrical upgrades that aren't part of the renewable system aren't covered.

Practical example for a small business

A small Pretoria architect's practice (taxed as a Pty Ltd at 27%) installs a R600,000 solar PV system in May 2026:

Year 1 (FY 2026/27): R300,000 deduction → R81,000 tax saved
Year 2: R180,000 deduction → R48,600 tax saved
Year 3: R120,000 deduction → R32,400 tax saved
Total tax saved: R162,000 over 3 years

For a business saving on diesel/grid power as well, the after-tax payback period typically lands between 4 and 7 years.

Renewable energy + small-business corporation

If the business is also a qualifying SBC, the tax saving is calculated against the graduated SBC rates (which can be as low as 7%). At 7% the same R600,000 installation saves only ~R42,000 in tax, but the SBC saved much more in regular tax already — they're complementary, not stacking.

VAT and solar

If the business is VAT-registered, input VAT on the installation (15% × cost) is recoverable on the next VAT201 — a much bigger up-front cash effect than the income-tax depreciation. A R600,000 installation has R78,260 input VAT recoverable. Use the VAT calculator to size that.

Practical takeaway

If you're an individual considering solar today (April 2026 onwards), there's no longer a personal tax incentive for it. Make the decision purely on energy cost-of-ownership versus loadshedding/grid-tariff savings. If you're running a business, Section 12B gives you a still-significant 50/30/20 deduction plus VAT recovery. The 6C and 12BA windows are closed; don't fall for installer marketing that suggests they're still available.