There still seems to be some uncertainty about government programmes to encourage rapid private investment in electricity generation from renewable energy.

The 12B incentive is particularly valuable for businesses, so it is useful to have some clarity:

• It is available for businesses that are registered for corporate income tax, sole proprietors and other taxpayers who are conducting business activities.
• It aims to assist businesses that would not have been in a position to invest in renewable energy if it were not for the incentive being in place.
• It aims to encourage investment as soon as possible.
• The incentive is only available for the next two years.
• Businesses can claim an upfront deduction of 125 per cent of the cost incurred to acquire qualifying assets used in the generation of electricity (including supporting structures) against their taxable income

This incentive has the potential to make a very substantial impact in addressing load shedding and increasing renewable energy generation rapidly. A guide to the incentive is available here.