As Finance Minister Enoch Godongwana prepares to deliver the Medium-Term Budget Policy Statement (MTBPS) on Wednesday, November 12, 2025, IMPOWER Solar's Business Development Executive, Matthew Cruise, has called on government to provide long-term certainty and critical support for the solar and renewable energy sector.

Cruise says he will be closely monitoring the Minister’s speech for three key issues vital to sustaining momentum in private-led energy generation:

1.       Extension and enhancement of tax incentives:

Commercial Incentive (Section 12BA): The temporary enhanced 125% tax deduction for businesses investing in renewable energy assets expired in February 2025. IMPOWER is looking for an announcement to reintroduce and extend this critical incentive, or introduce an equally potent replacement, to continue driving large-scale Commercial and Industrial (C&I) investment.

Household Incentive: While the one-year individual solar tax rebate (25% up to R15,000) was a welcome step, Cruise has previously suggested that incentives should go further and has noted that the exclusion of batteries and inverters from the rebate limited its full impact. Any new, expanded, or extended household tax relief must address these components to reflect the cost of complete, functional systems.

Looking ahead, Cruise cautions that government may discontinue the long-standing Section 12B allowance at the end of February 2026. Section 12B currently enables companies to deduct 100% of qualifying solar system costs from taxable income in the year of commissioning. Removing this incentive would represent a significant step backwards for South Africa’s energy transition, increasing the effective cost of capital for businesses seeking to invest in clean, reliable power.

2.       Addressing regulatory hurdles and grid infrastructure:

IMPOWER is keenly focused on clarification and streamlining of regulatory processes, particularly regarding grid connection. Cruise has previously highlighted the controversy and cost implications of registration and sign-off requirements for grid-tied solar systems above 1MW in size, being excessive.

The Minister's statement must include clear, immediate measures to strengthen grid access and capacity, and simplify wheeling regulations to unlock the full potential of distributed generation across the country.

3.       Commitment to energy stability and private producers:

Confirmation of the government's continued funding and support for the Independent Transmission Programme is essential. This signals a commitment to allowing private producers fairer grid access, which is crucial for the long-term stability of South Africa's power system.

Cruise has been a consistent advocate for enhanced fiscal policy to accelerate the energy transition. “I have previously welcomed the initial tax incentives but questioned whether they went far enough to truly incentivise the highest possible number of businesses and households to become power producers.”

He has specifically suggested that mechanisms like feed-in tariffs that have succeeded in other countries might be needed to supplement the current incentives.

“We remain optimistic that the Minister's MTBPS will deliver a fiscal framework that prioritises the private sector's role, providing the stability and clarity required for sustained investment in solar infrastructure, which is a key driver for economic growth and energy security,” says Cruise.