
As of 1 January 2016 the South African government gave a tax incentive through the for the installation of photovoltaic solar energy generation systems. Depending on the size defined in MWp () of the photovoltaic solar system, the amended section 12 B of the Income Tax Act No. 58 of 1962 stipulates the size of the available through to the commercial tax paying entity. South Africa's residential solar panel adoption is currently at 3.54%, but it's rapidly increasing. [pdf]
South Africa urgently needs to change this. It is highly dependent on coal fired power stations – about 85% of power is derived from fossil fuels. In addition, for the last decade it has faced increasingly severe power cuts. The rapid adoption of solar power could alleviate the pressure. Government has taken steps to improve the situation.
Solar power in South Africa includes photovoltaics (PV) as well as concentrated solar power (CSP). As of July 2024, South Africa had 2,287 MW of installed utility-scale PV solar power capacity in its grid, in addition to 5,791 MW of rooftop solar and 500 MW of CSP. Installed capacity is expected to reach 8,400 MW by 2030.
But it’s happening at a slow pace. South Africa is making efforts to increase the use of solar photovoltaic energy. But it’s happening at a slow pace. Solar photovoltaic contributes less than 5% to the country’s energy mix, despite the sunny climate, which is very favourable for solar photovoltaic energy generation.
Solar panels should be sold with motion sensors, floodlights and fasteners to prevent theft, and these security features should be subsidised by the government. South Africa is making efforts to increase the use of solar photovoltaic energy. But it’s happening at a slow pace.
Photovoltaic solar systems greater than 1 MW p are depreciated with the schedule 50%, 30%, and 20% in the first 3 years respectively. Despite this aggressive tax incentive, South African companies are slow to adopt grid-connected photovoltaic solar systems due to the lack of public dialogue from the government concerning photovoltaic solar energy.
Low and middle-income households have partially participated in the growing uptake of solar PV (SSEG) systems in South Africa for reasons pertaining to affordability and access to finance.

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