How you pay for it
Outright Purchase
Own it outright, with a Section 12B tax benefit. A direct purchase gives you full ownership of the system and every kWh it produces, from the day it is commissioned. For a business, it also opens the Section 12B allowance, and SolarSkye can service and maintain the system for its lifetime, which can reasonably be expected to exceed 25 years.
- Ownership
- Yours, from day one
- Tax
- Section 12B, where you qualify
- Ongoing payments
- None for the system
- Expected life
- 25+ years
How an outright purchase works
With an outright purchase, you pay for the system yourself, from cash reserves or your own borrowing, and you own it from commissioning. There is no tariff, rental or instalment for the system: every kWh it produces is energy you no longer buy from Eskom or the municipality.
Of all four models, owning outright usually delivers the greatest saving over the life of the system, because there is no funder's margin or finance cost to cover. Once the initial investment has been recovered through lower electricity bills, the savings for the rest of the system's working life are yours in full. Your quote will show the expected production, saving and payback period for your own site and load profile.
Payment is made against agreed project milestones, set out in the quote. You remain in control of the design, the equipment choices and the long-term maintenance of the asset.
Section 12B, explained plainly
Section 12B of the Income Tax Act is an accelerated capital allowance for renewable energy assets used in a trade. As the law stands today, solar PV with a capacity of up to 1 MW can be deducted in full, 100% of the qualifying cost, in the year it is first brought into use. Solar PV above 1 MW is deducted over three years: 50%, 30% and 20%.
The allowance reduces taxable income, not tax directly, so its value depends on your tax position. For a company paying tax at the current corporate rate of 27%, deducting the full cost reduces tax payable by roughly 27% of the qualifying cost, provided the business has enough taxable income to absorb the deduction. A sole proprietor or farmer taxed as an individual is taxed at personal rates instead. The deduction generally goes to the owner of the asset, which is why it applies most directly to an outright purchase. A private homeowner, who does not use the system in a trade, does not qualify.
The enhanced 125% allowance under section 12BA applied only to assets brought into use between 1 March 2023 and 28 February 2025 and has ended. Tax law changes, and details such as which components qualify alongside the PV, including battery storage, should be checked for your circumstances. Please confirm with your tax practitioner before relying on the allowance; we will provide the costing, specification and commissioning documents they need.
Who pays for what
As the owner, you carry the cost and the control. SolarSkye remains your partner for the life of the system.
Installation
Paid by you, against project milestones agreed in the quote.
Maintenance
SolarSkye can service and maintain your system for the lifetime of the product, through scheduled preventative maintenance that keeps it performing and protects the warranties.
Insurance
Added to your existing asset or property policy, as with any other plant or equipment you own.
Monitoring
Remote monitoring is set up at commissioning, so you can see production and our team can spot faults early.
Warranties
Manufacturer warranties pass to you. Panels typically carry long product and performance warranties, and inverters and batteries their own, which we will set out in your quote.
Benefits and trade-offs
Outright ownership suits a business or farm with capital available, a taxable income that can use the Section 12B allowance, and the intention to stay at the site for the long term. You get the full saving, the full tax benefit where you qualify, and a productive asset on your balance sheet.
The trade-off is the capital itself. Money spent on the system is not available for the rest of the operation, and the performance of the asset is your responsibility rather than a funder's. That is why the design and the build matter more than the price on the day: a system engineered to your load profile, installed by a qualified in-house team and maintained properly is what makes the investment pay back. If capital is better used elsewhere, an installment sale gives you ownership without the upfront outlay.
From consult to a running system
- 01Consult & Site AuditWe study your electricity accounts and load profile and assess the roof or land, so the system is sized to what you actually use.
- 02Solution Design & DiscussionWe design the system and give you a detailed quote with expected production, savings and payback, which your tax practitioner can use for the Section 12B assessment.
- 03Approvals & InstallationWe obtain grid-connection approval and any registration required, then our in-house engineers, electricians and solar technicians install.
- 04Inspections & CommissioningThe system is tested, certified and commissioned. The commissioning date is the date it is brought into use for tax purposes.
- 05Monitoring & MaintenanceOngoing monitoring and preventative maintenance keep the system performing for the 25+ years it is engineered to last.
Outright purchase questions
How much tax will Section 12B save me?
It depends on your tax position. Section 12B lets a qualifying business deduct the cost of the system from taxable income, in full in the first year for PV up to 1 MW. The actual saving depends on your tax rate and whether you have enough taxable income to use the deduction. Your tax practitioner can confirm it for your business.
Does Section 12B apply to battery storage?
Section 12B is aimed at the assets that generate renewable electricity. Whether batteries and other supporting components qualify with the PV depends on the system and how it is used, so please confirm this with your tax practitioner.
How long until the system pays for itself?
Payback depends on your load profile, your current tariff, the size of the system and your tax position. Your quote will show the expected payback for your own site, based on your accounts rather than an industry average.
Who looks after the system once it is paid for?
You own it, and SolarSkye can service and maintain it for the lifetime of the product. Scheduled preventative maintenance and monitoring keep it producing and keep the manufacturer warranties intact.
Can a homeowner buy a system outright?
Yes. Homeowners own the system and keep the full saving in the same way, but Section 12B does not apply to a private home because the system is not used in a trade.
Own your energy for the next 25 years
Send us your recent electricity accounts. We will design a system around your load profile and give you a detailed quote with expected production, savings and payback, ready for your tax practitioner.
Power On!