Tax incentives advance the energy-efficiency cause

The 12L tax incentives programme was established in 2013. Ten years later, the 300 projects completed under its auspices have saved 27 652GWh of electricity and avoided 27 megatons of direct CO2 emissions.

The 12L tax incentives programme encourages businesses to implement energy efficiency savings by allowing a tax deduction of 95c/kWh saved on energy consumption. The incentive was promulgated on 1 November 2013 and is claimable until December 2025. It allows for all energy carriers, except renewable energy, which can be claimed under the 12B tax incentive.

Companies that want to claim a 12L allowance, have to measure their energy consumption in kWh equivalent over a period of 12 months. The results of this implementation/ assessment period are then compared to 12 months of baseline measurement. Both the baseline measurement and savings are measured and verified by a measurement and verification (M&V) professional assigned by a SANASaccredited M&V body. There are currently eleven SANASaccredited M&V bodies whose contact details are available on the SANEDI website.