Solar ROI for Manufacturing in Cape Town
Cape Town offers a solar yield of 1,600 kWh per kWp annually, making it a strong location for manufacturing solar installations. Combined with Section 12B tax benefits, manufacturing businesses in Cape Town can achieve significant returns on their solar investment.
Key Parameters
System Size
250 kW
Solar Yield
1,600 kWh/kWp
Tariff Rate
R3.10/kWh
Install Cost
R3.5M
Manufacturing Solar in Cape Town
For manufacturers investing R3.5 million in solar, Section 12B delivers a first-year tax deduction of R4.375 million (125%). At a 27% corporate tax rate, this translates to R1.18 million in tax savings.
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.
250 kW Manufacturing System in Cape Town
Based on typical industry parameters. Your actual results will vary.
Section 12B Deduction
R3,500,000
Year 1 Tax Saving
R945,000
Payback (with tax)
2.0 yrs
Simple Payback
2.6 yrs
IRR
54.1%
25-Year Saving
R168,214,768
Ready to see your exact numbers?
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