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The energy supply crisis in South Africa is a major challenge for businesses and consumers alike. The cost of electricity has consistently risen each year to unprecedented levels. With this turmoil, opportunities have quickly risen within the booming alternative energy market in South Africa.
Capitalizing on the government’s recently enhanced Section 12B tax incentive, Jaltech has introduced a solar investment that allows investors to benefit from tax deductions while gaining exposure to this rapidly growing sector.
Investment theses
Jaltech’s Tax-Deductible Solar Investment looks at investing in commercial rooftop solar solutions which will be installed on large commercial property owners’ buildings. The benefit to the property owner is that they will have uninterrupted electricity, and over time (given the high annual Eskom rate escalations) will mostly likely purchase electricity at a significantly lower rate based on the agreement signed with Jaltech.
Investment rational
From an investor’s perspective, the investment offers ongoing and predictable returns which are underpinned by a physical asset (solar and related assets) and which payments are secured through long-term agreements with credit-worthy commercial property owners.
In addition, investors will also benefit from a significant tax deduction in years one and two of the investment. Effectively, the investment aims to return 100% of investors’ capital within the first two years of investment through the SARS refunds and annual cashflows.
For a more detailed explanation of the investment, click on the video below.
If you are interested in investing or are a large property owner looking for a solar solution click here and complete the enquiry form and a representative of Jaltech will contact you, or email Jonty Sacks at [email protected].
Jonty Sacks & Chris McCormick – Jaltech Fund Managers
