Section 12L of the Income Tax Act allows a deduction for verified energy efficiency savings, claimed per kilowatt-hour saved against a measured baseline. It cannot be claimed on an estimate: the savings must be verified by a SANEDI-accredited body, and that certificate supports the claim.
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).
Frequently asked questions
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.