“The current rebate of 95c/kW/* saved on energy consumption has proved to be of great interest to industry, as more and more businesses sign up with us,” explains Barry Bredenkamp, the general manager for energy efficiency at the South African National Energy Development Institute (Sanedi).
“The 12L tax incentive’s objective is two-fold: to encourage energy saving in a constrained capacity environment and to assist in meeting the country’s commitments to reduce carbon emissions over the next few years.”
The incentive allows tax deduction for the saving of gas, coal, liquid fuels or any energy carrier, (excluding renewable energy).
In order to claim the deduction, measurements must be kW/* equivalent. The verified and measured energy efficiency saving must be over 12 consecutive months, known as the implementation/assessment period, which is compared with the prior 12 months of baseline measurement. The baseline measurement and savings are verified and measured by a South African National Accreditation Systems-accredited measurement and verification (M&V) body, which assigns an M&V professional to the project.