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Budget Speech: solar PV industry responds to panels rebate

The solar PV industry association, SAPVIA, has issued a comment about the budget speech, delivered by Finance Minister Enoch Godongwana.

Dr Rethabile Melamu, CEO of SAPVIA, comments on the solar panels incentive that was announced by the Finance Minister: “Solar panels alone do not protect end users against loadshedding. The solar panels incentive is limited and does not address those households that cannot access instruments for the purchase of solar systems. At best those who install panels will only get up to R15 000 back from their taxable income.

“Based on a 25% cap this could translate to a solar system of R60 000 which will not make a meaningful impact for the average household without storage. This can get households about six 7kWp solar PV panels without storage. We also need more clarity as the rebate seems to incentivise higher tax rate paying people.

“SAPVIA is on record indicating that an average household tends to purchase a 5kW hybrid system, including panels and battery storage which ranges from R95 000 to R200 000 depending on the components used.

“It looks as if the incentives announced for business is better.

“Incentivising solar PV is a step in the right direction. However we urge government to consult with SAPVIA as industry experts to finetune and improve the design of relief packages and financial instruments.”