The costs included under the provision are:
They physical hardware (Inverter, Solar Panels, etc.)
The labour costs involved
The costs for mounting and racking for the solar installation, including the supporting structures or foundations
The electrical integration into your existing electrical circuits
Should the installation be financed, the finance charges may not be claimed under section 12(b) as they are deductible under Section 11(bA).
The other provision to this act is that the system/asset has to be brought into use for the purpose of the taxpayer’s trade.
The section of the 2016 Income Tax Act dealing with this can be found below:
in the carrying on of farming operations except –
any motor vehicle of which the sole primary function is the conveyance of persons;
any aircraft (other than an aircraft used solely or mainly for crop spraying); or
any office furniture or equipment);
for the purpose of trade to be used for the production of bio-diesel or bio-ethanol; for the purpose of his trade to generate electricity from –
photovoltaic solar energy of more than 1 megawatt; not exceeding 1 megawatt; or concentrated solar energy;
hydropower to produce electricity of not more than 30 megawatts; and
biomass comprising organic wastes, landfill gas or plant material.