South Africa incentivises renewable energy development with tax benefits

South Africa's National Treasury is proposing changes to carbon tax laws to encourage the construction and deployment of renewable energy projects. This is reported by BussinessTech.

The proposed amendments will allow taxpayers with embedded power generation to reduce their tax liability.

The changes to the carbon offset rules would increase the qualifying threshold to 30 MW, allowing larger embedded generation projects to receive tax credits.

The Treasury hopes this will incentivise investment in the green economy and accelerate the transition to renewable energy.

South Africa already has 9,291 MW of solar power installed, and this is expected to increase to 28,634 MW by 2028.

The new tax changes are intended to accelerate the connection of new capacity to the grid and attract investment in green technologies.

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