Solar Photovoltaic Panels Tax Rebate: Is the Tax Rebate the Right Tax Incentive Choice for South Africa?

The devastating effects of the global Covid-19 pandemic persist, and severe levels of load shedding have a further impact on South Africa’s economy. The consequences of load shedding continue to cripple all economic sectors. The introduction of the solar photovoltaic panel tax incentive was announced in the 2023 Budget Speech to mitigate these negative effects on households. However, this proposed incentive has several limitations, as the requirements would exclude a large number of ordinary South Africans from accessing the solar tax incentive. Considering this, the aim of this study was to investigate the tax incentive options that could be used to assist South Africans in their transition to solar energy, thereby ensuring a more inclusive transition. To provide a deeper understanding of alternative measures that could offer more sustainable initiatives, several options were analysed and reviewed. The study employed a qualitative research methodology and a review of existing literature as the research technique. Zero-rating is the most equitable instrument. If implemented, the results and recommendations will provide some form of tax relief to all individuals and encourage investments in solar photovoltaic panels, thereby achieving the policy goals of encouraging investments by individuals in clean energy.