South Africas tax incentives for renewable energy have spurred more than ZAR 1 B over USD 50 M in private investment for commercial solar projects in under two years, fund manager Jaltech said on Monday, showing how fiscal policy is helping to ease reliance on state power utility Eskom.
The investments highlight a sustained shift towards solar power among businesses, even after the country resolved its severe power cuts last year. The surge in investment highlights how targeted fiscal policy is mobilising private capital to help businesses wean themselves off the struggling state power utility, Eskom Holdings SOC Ltd.
The drive is now fueled by the economics of cheaper solar power and a permanent tax break, after a temporary, more generous incentive expired.
