REGULATIONS FOR NEW BUILDINGS AND ENERGY USAGE

06/13/2024

The Energy Efficiency Regulations for energy usage in buildings provide that all new buildings and building extensions in South Africa must conform to the regulations on energy conservation, including homes, industrial buildings, hotels and schools. Building plans will not be approved without compliance, and Inspectors are required to confirm same, specifically energy usage requirements. No compliance – no Occupancy Certificate.

TAX ALLOWANCE FOR ENERGY-EFFICIENCY SAVINGS

Regulations on the tax allowance for Energy-efficiency savings stipulate that any company holding a certificate that can prove their energy savings are genuine, can submit the certificate to claim an allowance from SARS. The allowance is as contemplated in Section 12L (2) of the Income Tax Act, 1962. Section 12L provides that tax incentives are available for savings in all energy forms, and not only electricity. The energy-efficiency savings tax incentive is calculated at a rate of 95c/kWh and also applies to cogeneration projects.


Disclaimer: The information in this article is an easy referenced overview of the South African Tax System and immovable property in South Africa. The information contained in this article is a summary of current property related information. Due to limitations in length, only key points on each topic are addressed. Words importing the masculine shall include a reference to the feminine and vice versa. We suggest that you do not act solely on material contained in this article as the nature of the information contained herein is general, and in summarised format, and may in certain circumstances be subject to misinterpretation. The information is provided with the understanding that no legal or professional advice is being rendered in this guide. We recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of this guide, no responsibility of any nature whatsoever will be accepted for any inaccuracies, errors, or omissions.