DA welcomes Deputy President’s commitment to discuss our R75k solar tax rebate proposal as a step forward

Issued by Kevin Mileham MP – DA Shadow Minister of Mineral Resources and Energy
23 Oct 2020 in News

The Democratic Alliance (DA) welcomes the commitment from Deputy President, David Mabuza, that he will discuss our proposal of a R75 000 tax rebate for households wishing to install a rooftop solar system with the Ministers of Finance, Public Enterprises and Mineral Resources and Energy, and apply his mind to seriously implementing this. He made this commitment during the parliamentary question session on Thursday.

The DA first made this proposal as part of our contribution to the budget process in 2019, and the recurrence of loadshedding has made it more necessary than ever. A fully costed proposal was prepared, and submitted to National Treasury. We will now resuscitate this and submit it to the Deputy President as he has requested.

We estimate that it will cost in the region of R4 billion over 3 years, and reach approximately 100 000 households. The estimated saving in electricity is 480MW. The proposal thus eases demand on both the grid and Eskom, boosts the local economy and lowers the risk of loadshedding. Given that loadshedding is estimated to cost the South African economy R1 billion per stage per day, it is clear that just two days of stage 2 loadshedding would more than justify the expense.

Deputy President Mabuza undertook to study the DA’s proposal, and discuss it with his Cabinet colleagues, before reverting to us in writing. We will hold him to this commitment, and look forward to further constructive discussions that can alleviate South Africa’s energy crisis.

Click here to read more about the DA’s plan to drive the cost of electricity down, introduce competition into the energy sector, and diversify the country’s energy sources to introduce more renewables, as well as our record of action on the electricity crisis over the last 8 years.