Solar ROI for Automotive in East London
East London offers a solar yield of 1,550 kWh per kWp annually, making it a solid location for automotive solar installations. Combined with Section 12B tax benefits, automotive businesses in East London can achieve significant returns on their solar investment.
Key Parameters
System Size
120 kW
Solar Yield
1,550 kWh/kWp
Tariff Rate
R2.95/kWh
Install Cost
R1.7M
Automotive Solar in East London
A dealership group investing R1.68 million in solar claims a R2.1 million Section 12B deduction. At 27% tax, the R567,000 first-year tax saving accelerates payback to under 3 years.
East London's manufacturing sector, anchored by the automotive industry in the East London IDZ, provides a strong base for commercial solar adoption. The city's industrial areas have large roof spaces ideal for solar.
120 kW Automotive System in East London
Based on typical industry parameters. Your actual results will vary.
Section 12B Deduction
R1,680,000
Year 1 Tax Saving
R453,600
Payback (with tax)
2.1 yrs
Simple Payback
2.8 yrs
IRR
50.9%
25-Year Saving
R72,731,410
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