IMPOWER Solar has welcomed the major financial commitment to the grid announced in the Mini Budget in Parliament (on Wednesday) but noted the critical omission of enhanced tax incentives for the sector.

As one of South Africa’s leading solar and energy storage companies, IMPOWER Solar continues to advocate for policy measures that strengthen the renewable energy and accelerate national energy security.

The company had called for long-term certainty and support for the solar sector, focusing on the extension of commercial tax incentives and the inclusion of inverters and batteries in the household rebate.

IMPOWER Solar welcomed the announcement that the government will contribute R2 billion to capitalise a new Credit Guarantee Vehicle aimed at supporting electricity transmission expansion.

This measure addresses IMPOWER’s call for continued funding and support for the Independent Transmission Programme. However, the speech was notably silent on the core issue of solar tax incentives.

“We are very pleased to see the Minister deliver a concrete mechanism (the R2 billion Credit Guarantee Vehicle) to directly unlock the transmission bottleneck, which is essential for private power producers,” said Matthew Cruise, Business Development Executive at IMPOWER Solar. “This sends a strong signal that government is committed to facilitating grid access.”

“However, the market needed more than just a commitment to transmission. The 125% tax incentive for businesses (Section 12BA of the Income Tax Act) expired in February, and the Minister did not announce its reintroduction, nor did he address the necessary expansion of the household rebate to include inverters and batteries. These tax measures are vital for sustaining momentum in Commercial & Industrial (C&I) and residential solar adoption.”

Cruise noted that while the Minister confirmed the tabling of the Taxation Laws Amendment Bill, the company will now have to await the 2026 Budget for a final decision on whether the proposed R20 billion in tax increases will be withdrawn, a decision that will shape the fiscal landscape for all businesses.