24 Feb Solar receives a shot in the arm from Finance Minister
While the highly anticipated relaxation of VAT on solar installations hinted at in the President’s State of the Nation Address didn’t come to pass in this year’s Budget speech, the Finance Minister has acceded to tax breaks and loan guarantees for both businesses and for individuals contemplating the installation of rooftop solar, at least in the residential market for the next 12 months and for two years for businesses to stimulate investment in the short term.
Welcoming the announcement is Svilen Voychev, CEO of Valsa Trading, a specialist photovoltaic (PV) solar turnkey supplier.
According to the Minister’s announcement, “from 1 March 2023, businesses will be able to reduce their taxable income by 125 per cent of the cost of an investment in renewables with no thresholds on the size of the projects that qualify, while individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25 per cent of the cost of the panels only, up to a maximum of R15 000. This can be used to reduce their tax liability in the 2023/24 tax year.” He stated that this incentive will be available for one year.
“This is good news not only for the solar industry but for any business owner or individual contemplating the installation of solar to alleviate the destructive effects of persistent loadshedding that has so damaged our economy” said Voychev.
“A key take away from this announcement is that government doesn’t expect the stability of Eskom’s grid power to significantly improve in the short term, and businesses in particular are being assisted to help them through the damaging effects of loadshedding on their businesses.
“To assist SMME’s, the Minister has extended the Bounce Back Scheme, first seen during the COVID pandemic, where the government will guarantee solar related loans for small and medium enterprises on a 20 per cent first-loss basis, commencing in April 2023 which should make the banks and other financial institutions more receptive to loan applications for solar from this sector.”
Voychev adds that these announcements will remove the doubts of many individuals and business owners that solar is a luxury and that loadshedding will end anytime soon. “In addition to the unavailability of essential power, it is the unpredictability of which stage of loadshedding can be expected that causes such distress and economic damage, especially where processes and production runs such as CNC machining or plastics extrusion are interrupted with consequence losses” he explained.
Valsa Trading has a track record in the solar industry spanning 14 years since its establishment in 2009. The company designs, manufactures and supplies photovoltaic (PV) solar mounting solutions for all roofs, carports, and ground applications, while further extending a basket of offerings as a technical partner for pole, facade, and floating applications. That, coupled with an extensive range of PV solar products including panels, inverters, batteries, cables, switchgear, pumps, drives etc., adds to its comprehensive offering for all PV solar requirements to suit residential, corporate, or industrial needs.
Most importantly, the company shares its knowledge with its partners through extensive training and product familiarisation courses from its premises in Johannesburg and Cape Town.
About Valsa Trading
Valsa Trading (Pty) Ltd, established in 2009, is a specialist photovoltaic (PV) solar turnkey supplier. The company designs, manufactures and supplies PV solar mounting solutions for all roofs, carports, and ground applications, while further extending a basket of offerings as aa technical partner for pole, facade, and floating applications. That, coupled with an extensive range of PV solar products including panels, inverters, batteries, cables, switchgear, pumps, drives etc., adds to its comprehensive offering for all PV solar requirements to suit residential, corporate, or industrial needs.
Media Contact:
Charles Poulter
Account Manager: SWM Communications
Mobile | 076 812 8429
Email | charles@swmcommunications.co.za
Valsa Contact:
Zhante Hatting
Marketing: Valsa Trading
Mobile | 069 589 8007
Email | marketing@valsa.co.za