South Africa’s Department of Energy has released regulations for public comment relating to a tax break that could be earned by companies able to provide evidence of energy efficiency savings.
The power savings would have to be proved through a measurement and verification report undertaken by a body accredited by the South African National Accreditation System and also registered with the South African National Energy Development Institute (Sanedi).
Sanedi would also need to approve applications from companies wishing to undertake energy savings projects before they proceed.
Should the regulations be implemented in the current format, companies holding a savings certificate would be entitled to submit the certificate to the South African Revenue Service and claim a tax allowance.
The draft regulations, which are in line with Section 12L of the Income Tax Act, clarify the framework and methodology for the issuance of energy savings certificates and have been opened for public comment for a period of 60 days.