Section 12B · Logistics & Transport

Section 12B Solar Tax Deduction for Logistics & Transport

Logistics companies operate energy-intensive sorting facilities, cold-chain warehouses, and fleet depots. As electric vehicle charging enters the sector, energy demand will grow further. Section 12B's 125% first-year deduction makes solar a strategic investment for forward-looking logistics businesses.

Logistics & Transport Energy Profile

Distribution centres and sorting hubs run conveyor systems, loading dock equipment, and lighting during extended operating hours. Cold-chain logistics adds significant refrigeration load. Solar covers the daytime peak while reducing dependence on Eskom during load-shedding.

Typical System

180 kW

Monthly Usage

28,000 kWh

Peak Hours

04:00-20:00

Solar Match

72%

How Section 12B Benefits Logistics & Transport

A logistics company investing R2.52 million in solar claims a R3.15 million Section 12B deduction. At 27% tax, this returns R850,500 in the first year, dramatically shortening the payback period.

Logistics depots have expansive flat roofs ideal for solar. Covered parking bays and truck staging areas also provide opportunities for carport-style solar installations that serve dual purposes.

Example: 180 kW System for Logistics & Transport

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

Section 12B Deduction

R2,520,000

Year 1 Tax Saving

R680,400

Payback (with tax)

2.1 yrs

Simple Payback

2.7 yrs

IRR

52.1%

25-Year Saving

R112,712,299

Logistics & Transport Solar ROI by City

Johannesburg Gauteng Durban KwaZulu-Natal Cape Town Western Cape Port Elizabeth Eastern Cape Richards Bay KwaZulu-Natal

Frequently Asked Questions

Yes. Solar-powered EV charging is increasingly relevant for last-mile delivery fleets. The solar installation and charging infrastructure both contribute to the Section 12B claim when integrated.

Solar with battery backup maintains cold-chain integrity during load-shedding, protecting perishable inventory worth far more than the electricity cost. The avoided loss strengthens the business case.

Solar covers the daytime base load, which represents the majority of energy costs. Battery storage extends coverage into early morning and evening sort windows when operations peak.

Other Industries

Manufacturing Retail Office/Commercial Warehouse/Distribution Agriculture Hospitality Healthcare Mining & Quarrying Food & Beverage Processing Education Automotive

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