Solar ROI for Retail in Cape Town
Cape Town offers a solar yield of 1,600 kWh per kWp annually, making it a strong location for retail solar installations. Combined with Section 12B tax benefits, retail businesses in Cape Town can achieve significant returns on their solar investment.
Key Parameters
System Size
100 kW
Solar Yield
1,600 kWh/kWp
Tariff Rate
R3.10/kWh
Install Cost
R1.4M
Retail Solar in Cape Town
A retail business investing R1.4 million in a 100 kW solar system can claim a R1.75 million deduction under Section 12B. This reduces taxable income substantially in year one, improving cash flow when it matters most.
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.
100 kW Retail System in Cape Town
Based on typical industry parameters. Your actual results will vary.
Section 12B Deduction
R1,400,000
Year 1 Tax Saving
R378,000
Payback (with tax)
2.0 yrs
Simple Payback
2.6 yrs
IRR
54.1%
25-Year Saving
R67,285,907
Ready to see your exact numbers?
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