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How to Claim Solar Rebate in South Africa

·8 min read·by
How to Claim Solar Rebate in South Africa

So, how to claim solar rebate in South Africa? It’s not a simple one-step process, and that catches a lot of homeowners off guard. You’re dealing with two separate systems: the SARS tax credit from the 2023/24 tax year, and municipal incentive programs that still exist in some cities.

Each has different rules, different paperwork, and different deadlines.

As of 2026, the national individual tax rebate is closed to new purchases, but it’s still worth understanding if you haven’t filed your 2024 return yet. The key numbers matter: the SARS rebate gave individuals 25% back on the cost of new solar photovoltaic panels, capped at R15,000. Now, let’s walk through what actually applies to you.

Quick Answer

Install qualifying solar PV panels and keep the tax invoice. Get a compliance certificate from a registered electrician. File your ITR12 on eFiling under Section 12BA.

This only applies to panels installed in the 2023/24 tax year. Municipal rebates use separate applications.

Why This Matters More Than You Think (and Why You Can't Afford to Get It Wrong)

Here’s the uncomfortable truth: the “solar rebate” you keep hearing about isn’t a discount. It’s a tax credit. Tax credits come with deadlines, documentation, and zero grace for sloppy applications.

The national individual rebate, properly called Section 12BA, was a temporary measure. It applied to new, unused solar PV panels that were bought and put into use between 1 March 2023 and 29 February 2024. As of 2026, that window has closed.

But if you haven’t submitted your 2024 tax return yet, or if SARS issued an assessment that didn’t include the rebate, this process still matters for you.

The municipal route is still live in some places. The City of Cape Town continues to run incentive programs for rooftop solar, and other metros have made announcements. The catch is that each program has its own application form, approval process, and compliance demands.

A rejection in Joburg doesn’t mean Cape Town will reject you too.

Why are the stakes so high? A rejected application isn’t just an inconvenience. It can delay your assessment, trigger an audit, and lead to interest charges if you later owe money.

In our research, the most common failure isn’t fraud. It’s people claiming the wrong components, using an unregistered installer, or submitting an invoice that doesn’t separately list the panels.

Before you claim anything, it helps to understand the basics of how solar panels generate electricity and why the system size affects your claim. That knowledge shapes what you ask your installer for, and the invoice structure can make or break your rebate.

The Two Separate Rebates You Need to Know About

Before you fill in anything, find out which rebate you’re actually chasing. They are not interchangeable.

The first is the SARS individual rebate. It lives inside your income tax return. It reduced the tax you owed by 25% of your eligible solar panel cost, up to a maximum of R15,000.

Batteries, inverters, wiring, and labour did not count. Only the photovoltaic panels themselves.

The second is a municipal rebate. These are cash incentives, rate reductions, or billing credits paid by your local authority. They usually require a separate application, and approval is never guaranteed.

The rules change from one municipality to the next, and they can change mid-year.

Rebate typeWho pays itWhat it coversStatus as of 2026
SARS Section 12BASouth African Revenue ServiceSolar PV panels onlyClosed to new purchases; claims for the 2023/24 tax year can still be submitted
Municipal solar incentiveYour local municipalityPanels, batteries, and inverters depending on the programmeActive in some metros like Cape Town; rules vary widely
SARS Section 12BSouth African Revenue ServiceFull solar system used for businessActive for businesses; 100% deduction in the year of assessment

The business route is a different animal. If you own a company, don’t force yourself into the individual rebate. Section 12B is far more generous, but it comes with its own red tape.

If you’re shopping around, review the different types of solar panels first. The rebate may only cover certain panel specifications, and a generic quote won’t always tell you what you need.

Who Qualifies and Who Gets Left Out

Qualifying isn’t about how much electricity you use or how big your system is. It’s a narrow set of technical requirements, and missing even one can kill the claim.

Here’s the checklist that worked for most successful applicants we’ve seen:

  • You are a natural person, not a company or trust.
  • You own the property where the panels are installed.
  • The panels are new and unused.
  • The panels were installed and first used in the same tax year you’re claiming.
  • The installation was done by a registered installer.
  • You have a valid Electrical Compliance Certificate.
  • You have a tax invoice that lists the solar PV panels as a separate line item.

If any of those points are missing, you’re likely outside the rebate window.

Tenants usually can’t claim either. If you rent, the landlord owns the solar panels, so the landlord would be the one to claim under Section 12B or the individual rebate. You can’t claim an asset you don’t own.

There’s also a common misunderstanding around power purchase agreements. If a solar company installed panels on your roof and you only pay for the energy produced, you don’t own the panels. The provider does.

That means they’re eligible for a business deduction, not you.

If you’re still evaluating whether solar makes sense for your property, look at the main components of a solar panel and what you’re actually paying for. That will help you avoid paying for extras that don’t qualify for any rebate.

Step-by-Step: How to Claim the SARS Individual Rebate

If you installed qualifying panels between 1 March 2023 and 29 February 2024, this is the process for claiming the SARS rebate. It’s not done through a separate form. It happens inside your annual tax return on eFiling.

1. Confirm your installation dates

Check your installation invoice and the date the system was first switched on. If the panels were purchased in one tax year but only connected in the next, your claim may fall apart. SARS looks at the date the asset was brought into use, not the purchase date.

2. Gather your supporting documents

You’ll need the original tax invoice from the supplier, proof of payment, and the Electrical Compliance Certificate from the registered electrician. The invoice must clearly separate the cost of the solar PV panels from the inverter, battery, cabling, and installation labour.

3. Log in to eFiling and complete your ITR12

Under the section relevant to the renewable energy rebate, enter the cost of the panels. SARS’s system calculates the 25% credit automatically, up to R15,000. If you’re unsure where to enter it, use the SARS online help function rather than leaving the field blank.

4. Submit and save everything

Once you file, you’ll receive an assessment. Keep your invoice, certificate, and proof of payment for at least five years. SARS can flag a claim for verification, and without paperwork, the rebate gets reversed.

If you already filed your 2024 return and forgot to claim, don’t panic. You may be able to submit an amended return, or lodge an objection against your original assessment. It’s faster than waiting for SARS to notice the omission themselves.

If you’re planning a new installation now, the SARS individual rebate won’t apply. But the same documentation habits will help you apply for municipal incentives. Knowing how to structure an invoice properly is useful either way, especially if you’re comparing options from a solar panel buying guide.

Municipal Rebates: Cape Town, Joburg, Durban and the Rest

Municipal rebates are where the action is right now, but they’re not uniform. Each city sets its own budget, its own rules, and its own application timeline.

Cape Town remains the strongest option. The City has run incentives for solar PV and battery systems for residential properties, with the exact amount changing periodically. You apply through the City’s online portal, and approval depends on your installation meeting municipal grid connection standards.

It’s not a tax credit. It’s a cash payment or a credit on your rates account.

Johannesburg works differently. City Power doesn’t offer an upfront cash rebate for residential solar. Instead, it runs net billing.

Your excess solar energy gets fed back into the grid, and you receive a credit on your account. That’s a long-term payback, not an immediate rebate.

Durban has talked about incentives for a while now. As of 2026, there’s no active upfront rebate for home solar systems through eThekwini. You’ll want to check the municipal website before assuming anything is available.

MunicipalityWhat’s on offerTypical requirement
City of Cape TownCash incentive or rates credit for solar PV and batteriesRegistered installer, municipal approval, valid COC
City Power JohannesburgNet billing credit for exported solar energyBi-directional meter, grid-connection approval
eThekwini DurbanNo active upfront rebate as of 2026Check current updates before planning

For smaller municipalities and rural areas, options are scarce. Many local authorities offer no solar rebate at all, only the standard feed-in tariff rules set by NERSA. That means your only financial benefit comes from lower monthly electricity usage.

Before you commit to any system, consider the advantages and disadvantages of solar panels for your specific city. A rebate is wonderful, but it shouldn’t be the sole reason you install solar. The real value is in long-term energy savings, which is why understanding how solar panels work is just as important as the rebate application itself.

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