How much is the Section 12L energy efficiency incentive worth?

Section 12L of the Income Tax Act allows a tax deduction of R0.95 for every kWh of energy saved against a certified baseline. Because it is a deduction rather than a rebate, the actual cash benefit equals the deduction multiplied by your corporate tax rate (27%), on top of the electricity cost you no longer pay.

How do I claim the Section 12L deduction from SARS?

Register your project with SANEDI, appoint a SANAS-accredited Measurement & Verification (M&V) body to measure your savings against a SANS 50010-compliant baseline, and have the M&V report submitted to SANEDI. SANEDI then issues a tax certificate that you submit with your annual income tax return as proof of the deduction.

Is the Section 12L incentive still available in 2026?

Yes. The Section 12L energy efficiency savings incentive has been extended until 31 December 2030 (confirmed by SANEDI in March 2025), so qualifying projects can still claim the deduction in the 2026 tax year.

Section 12L Energy Savings Calculator South Africa 2026

Your energy consumption

How to claim this from SARS

Register your project with SANEDI (free — sanedi12ltax.org.za)
Appoint a SANAS-accredited M&V body to measure your savings
M&V body submits report to SANEDI for approval
SANEDI issues a tax certificate (your proof for SARS)
Claim the deduction on your annual income tax return

Savings must comply with SANS 50010. Extended until 31 December 2030 (confirmed SANEDI March 2025).