After a long period of anticipation, National Treasury has officially announced the reduction of tax burden through energy efficiency.

We are excited to see how this translates in practice, as it is a potentially economic bonus for energy technologies if implemented correctly. Without deeper investigation it seems that the explicit application is for energy efficiency technologies and not necessarily energy generation technologies. However, deductions are measured by creating a baseline before implementation and then continuous measurement thereafter to calculate savings. The deductions are then calculated at R0.45/kWh. If generation capacity is installed and the power is utilized at the premises of generation, there would be a definite difference between the baseline and future demand.

We will be watching and doing further investigation to see how this legislation will translate into practice.

Read the full article published in the Green News here.