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Energy efficiency tax incentive in South Africa

By Antonio Ruffini, Editor, ESI Africa

South Africa has introduced a tax incentive for energy efficiency in the industrial and commercial sectors, amounting to 45c per kWh saved.

The regulation announcing this incentive, was published on the 9 December 2013 and subsequent to that and during the first quarter of 2014 workshops were undertaken to explain how companies can participate in the scheme. Workshops with industry groups on an invitation basis were followed by a national roadshow across all nine provinces in South Africa.

This particular tax incentive represents a significant change in energy efficiency incentives in South Africa, that has traditionally been dominated by national utility Eskom, which has seen its funding for its Integrated Demand Management (IDM) programmes suspended, due to funding constraints.

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