National Treasury will in the coming weeks introduce measures to assist with the rollout of rooftop solar for households, to encourage electricity generation and expand the renewable energy tax incentive for business.
So said finance minister Enoch Godongwana in Parliament this week, when he tabled the department’s budget vote for the 2023/24 financial year.
The minister published the draft taxation legislative amendments for public comment to give effect to the two renewable energy tax incentives announced in the 2023 Budget.
He said these proposals will assist in partially addressing the country’s energy crisis and encourage private investment in expanding electricity generation.
“As a complementary measure, National Treasury has also made changes to the Bounce Back Loan Guarantee Scheme (introduced in 2022) to incentivise rooftop solar investments, with the aim to reduce energy-related constraints experienced by small and medium enterprises.
“Specifically, government will guarantee solar-related loans for small and medium enterprises (SMEs) on a 20% first-loss basis, as well as facilitate the leasing of rooftop solar by households and SMEs. The Bounce Back measures will be introduced in the coming weeks,” the minister said.
Godongwana noted these are among a suite of reforms National Treasury has championed as part of Operation Vulindlela.
In addition to securing energy supply, he said, the joint operation with the Presidency aims to ensure sustainable water supply, establish a competitive logistics network, improve digital communications and reform the visa regime.
Overall, he pointed out, over half of the reforms are either completed, or on track to be completed within the next 12 months.
“We are also taking strategic action to secure our long-term growth prospects. There are no silver bullets or easy solutions to our economic challenges. What is needed is for us as a department, as a government and as a nation, to make the difficult and informed trade-offs necessary to revive our economy.”
Share