Jaltech's 235% tax-deductible solar investment with built-in risk mitigation

Jaltech’s Residential Section 12B investment presents taxpayers with an opportunity to significantly reduce their taxable income for the 2026 financial year and, in so doing, see up to 106% of their capital returned in the first year. 

The investment originates from a recently announced partnership between Jaltech and Wetility, South Africa’s leading residential solar provider. Through this partnership, Jaltech will provide approximately R500 million in funding to support Wetility’s ongoing residential solar roll-out.

The structure enables investors to claim a 100% tax deduction on their investment amount under Section 12B, which is then enhanced by an additional 135% deduction through debt funding. This results in a R1 million investment allowing an investor to deduct R2.35 million against their taxable income. 

For someone in the highest tax bracket (45%), a R2.35 million tax deduction would result in a SARS refund of around R1.06 million, effectively returning the initial investment amount plus an additional 6% in the current financial year. 

On top of the tax saving, investors can anticipate steady annual cash flows, with projected pre-tax yields averaging 14% to 17% (net of fees). 

The investment offers diversified exposure to a portfolio of up to 3,000 residential solar installations across South Africa, with risk mitigated through geographic spread and portfolio scale. Additional layers of protection include a first-loss buffer, Wetility’s commitment to remove systems where property owners’ default, and an obligation to purchase the solar assets at the end of the investment term.

For investors to be eligible for the tax deduction, Jaltech must deploy committed capital into solar systems actively generating electricity before the end of February 2026. To reduce this risk, Jaltech is opening its next investment tranche on 1 September, providing investors with the opportunity to commit capital and benefit from sufficient time to maximise the chances of successful deployment. 

Investors interested in understanding more about Jaltech's Section 12B investment before the next tranche opens can click here and complete the online form, and a Jaltech representative will contact you.