Section 12B · Cape Town, Western Cape

Section 12B Solar Tax Deduction in Cape Town

Cape Town enjoys a Mediterranean climate with long, sunny summers and mild winters. Annual solar yield averages 1,600 kWh per kWp installed, with peak output from October to March.

Solar Conditions in Cape Town

Solar Yield

1,600 kWh/kWp

Avg Tariff

R3.10/kWh

Sun Hours/Day

5.8-7.2

Electricity Tariffs in Cape Town

City of Cape Town electricity tariffs average R3.10/kWh for commercial users, among the highest in South Africa. These high rates make solar payback periods shorter and overall savings greater.

Cape Town has been a pioneer in municipal solar feed-in programmes and progressive by-laws supporting rooftop installations. The city's SSEG programme allows businesses to register and receive credit for excess generation.

Example: 150 kW Commercial System in Cape Town

Based on typical industry parameters. Your actual results will vary.

Section 12B Deduction

R2,100,000

Year 1 Tax Saving

R567,000

Payback (with tax)

2.0 yrs

Simple Payback

2.6 yrs

IRR

54.1%

25-Year Saving

R100,928,861

Solar ROI by Industry in Cape Town

Manufacturing Retail Office/Commercial Warehouse/Distribution Agriculture Hospitality Healthcare

Frequently Asked Questions

Cape Town averages 1,600 kWh per kWp installed annually, with 5.8 to 7.2 peak sun hours per day depending on season.

Yes. Cape Town's Small-Scale Embedded Generation (SSEG) programme allows registered solar installations to feed excess power back to the grid for credit on your municipal account.

Winter output drops by roughly 40% compared to summer, but Cape Town still produces meaningful solar energy year-round. System sizing should account for seasonal variation.

Other Cities

Johannesburg Gauteng Pretoria Gauteng Durban KwaZulu-Natal Port Elizabeth Eastern Cape Bloemfontein Free State East London Eastern Cape Polokwane Limpopo Nelspruit Mpumalanga

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