Renewable energy is a topical issue in South Africa due to energy constraints and high levels of blackouts. The advent of renewable energy sources, such as solar power, can assist with combating these issues currently being experienced in the country. Tax incentives are a way to increase the adoption of solar power in South Africa. This study aimed to compare the recently implemented solar tax incentives in South Africa to those in developing and developed countries, namely India and the USA, respectively. Due to the expanded solar incentives in South Africa only recently being implemented in 2023, there are no prior studies on this topic. The study was conducted by using a comparative analysis of literature to compare the incentives in each respective country and subsequently provided recommendations for the South African solar tax incentives, based on these findings. South Africa has less beneficial solar tax incentives as opposed to those in India and the USA for individuals and has more stringent qualification requirements. The incentives available to businesses in South Africa are beneficial; however, there are fewer incentives available compared to India and the USA. Improvements can be made to the South African solar tax incentives by expanding the incentives available to both businesses and individuals based on similar legislation in the USA and India. This study provides insights into potential tax incentives that could be adopted to increase the use of solar energy in South Africa.

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Comparative Analysis of the Proposed South African Solar Tax Incentives with the Solar Tax Incentives in the USA and India

  • Kirsten Sydow,
  • Mahmood Surty

摘要

Renewable energy is a topical issue in South Africa due to energy constraints and high levels of blackouts. The advent of renewable energy sources, such as solar power, can assist with combating these issues currently being experienced in the country. Tax incentives are a way to increase the adoption of solar power in South Africa. This study aimed to compare the recently implemented solar tax incentives in South Africa to those in developing and developed countries, namely India and the USA, respectively. Due to the expanded solar incentives in South Africa only recently being implemented in 2023, there are no prior studies on this topic. The study was conducted by using a comparative analysis of literature to compare the incentives in each respective country and subsequently provided recommendations for the South African solar tax incentives, based on these findings. South Africa has less beneficial solar tax incentives as opposed to those in India and the USA for individuals and has more stringent qualification requirements. The incentives available to businesses in South Africa are beneficial; however, there are fewer incentives available compared to India and the USA. Improvements can be made to the South African solar tax incentives by expanding the incentives available to both businesses and individuals based on similar legislation in the USA and India. This study provides insights into potential tax incentives that could be adopted to increase the use of solar energy in South Africa.