Solar Tax Rebate Calculator
Calculate your Section 6C solar tax rebate (25% of panel cost, max R15,000) and Section 12BA business deduction (125%). Includes payback period and 10-year savings projection.
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Cost of qualifying solar photovoltaic panels only (not inverter, batteries, or installation).
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Your taxable income — rebate reduces your tax liability.
Tax Rebate (Section 6C)
R 12 500
Panel Cost
R 50 000
Rebate Rate
25%
Max Rebate (individual)
R 15 000
Tax Saving as % of Panel Cost
25.00%
Net Panel Cost After Rebate
R 37 500
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How the Solar Tax Rebate Works
The Section 6C rebate gives individuals 25% of the cost of new solar PV panels, up to R15,000 per year. This rebate is deducted directly from your tax bill — not from your taxable income. So if you owe R50,000 in tax and spent R50,000 on panels, your tax drops by R12,500.
Businesses can use Section 12BA to deduct 125% of the full solar system cost (panels, inverters, batteries) against taxable income, creating a significant cash flow benefit at the 27% corporate tax rate.
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Section 6C: 25% of panel cost, max R15,000 rebate. New panels, min 270W, brought into use Feb 2023–Feb 2025.
Section 6C Tax Rebate
R 12 500
Panel Cost
R 50 000
Rebate (25%, max R15k)
R 12 500
Net Panel Cost After Rebate
R 37 500
Tax Before
R 69 272
Tax After Rebate
R 56 772
Section 6C Rebate Formula
Rebate = min(Panel Cost × 25%, R15,000)
Example: R50,000 in panels
Rebate = min(R50,000 × 25%, R15,000) = min(R12,500, R15,000) = R12,500
Example: R80,000 in panels
Rebate = min(R80,000 × 25%, R15,000) = min(R20,000, R15,000) = R15,000 (capped)
Tax after rebate = Normal tax − R15,000
(rebate cannot create a refund if you had no tax liability)
What Qualifies for Section 6C
| Item | Qualifies? | Notes |
|---|---|---|
| Solar PV panels (new) | Yes | Min 270W per panel |
| Solar PV panels (used/refurbished) | No | Must be new and unused |
| Inverter | No | Not qualifying for 6C |
| Battery storage | No | Not qualifying for 6C |
| Installation labour | No | Not qualifying for 6C |
| Connection/cabling | No | Not qualifying for 6C |
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System Cost Breakdown
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Total System Cost
R 93 000
Note: Section 6C rebate applies to PV panels only. Inverters, batteries, and installation do not qualify.
Taxpayer Profile
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Electricity Profile
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%
%
years
Net System Cost After Tax Benefit
R 84 250
Total System Cost
R 93 000
Section 6C Rebate
R 8 750
Payback Period
3 years
10-Year Electricity Saving
R 473 815
10-Year ROI
462.4%
Tax Impact
Tax Before Rebate
R 94 072
Section 6C Rebate
-R 8 750
Tax After Rebate
R 85 322
Year-by-Year Projection
| Year | Annual Bill | Saving | Cumulative | Remaining Cost |
|---|---|---|---|---|
| 1 | R 36 000 | R 27 000 | R 27 000 | R 57 250 |
| 2 | R 40 320 | R 30 240 | R 57 240 | R 27 010 |
| 3 | R 45 158 | R 33 869 | R 91 109 | Paid off |
| 4 | R 50 577 | R 37 933 | R 129 042 | Paid off |
| 5 | R 56 647 | R 42 485 | R 171 527 | Paid off |
| 6 | R 63 444 | R 47 583 | R 219 110 | Paid off |
| 7 | R 71 058 | R 53 293 | R 272 403 | Paid off |
| 8 | R 79 585 | R 59 688 | R 332 092 | Paid off |
| 9 | R 89 135 | R 66 851 | R 398 943 | Paid off |
| 10 | R 99 831 | R 74 873 | R 473 816 | Paid off |
Section 6C vs 12BA Comparison
| Feature | Section 6C (Individual) | Section 12BA (Business) |
|---|---|---|
| Who qualifies | Natural persons | Businesses/companies |
| Benefit type | Tax rebate (off tax owed) | Deduction (off taxable income) |
| Rate | 25% of panel cost | 125% of asset cost |
| Maximum | R15,000 per year | No cap |
| Qualifying assets | PV panels only | Solar + batteries + inverters |
| Panels must be new? | Yes | Yes |
| Minimum wattage | 270W per panel | None specified |
Frequently Asked Questions
Section 6C gives individuals a rebate of 25% of the cost of new solar PV panels (min 270W), up to R15,000 per year. Applied to panels brought into use 1 March 2023 – 29 February 2025.
No. Only solar PV panels qualify for Section 6C. Businesses can claim inverters and batteries under Section 12BA (125% deduction).
Section 12BA allows a 125% deduction of the full solar system cost against taxable income. On R100,000 of assets, the deduction is R125,000. At 27% corporate tax, this saves R33,750.
Claim on your ITR12 tax return. Keep your purchase invoice, proof of payment, and Certificate of Compliance (COC) from a registered electrician. SARS may request supporting documents.
No. The Section 6C rebate can reduce your tax to zero but cannot result in a refund (it is non-refundable). If your tax liability is less than R15,000, the unused portion is forfeited.