Solar investing after the tax boom: Why quality and the right partners matter more than ever
One of South Africa’s most generous tax incentives, Section 12BA, providing investors an effective 125% tax s deduction on accelerated tax deduction on qualifying solar projects of 125% has now reached its planned conclusion. From the outset, investors knew this opportunity would be time-limited, driving a surge of interest and significant investment into renewable energy by the February 2025 deadline.
However, the close of 12BA is not the end of attractive tax-efficient opportunities in the sector. Section 12B remains a robust framework for investors who seek meaningful returns, tangible assets, and positive impact. As the market matures, a new chapter begins. Success now depends on careful selection, hands-on management, and a focus on lasting value rather than just tax relief. This shift brings new opportunities for those who value substance, quality, and long-term growth.
Section 12B: The Shift to Quality
Section 12B still offers a compelling incentive: a 100% tax deduction on qualifying solar investments. The key change is that achieving the same benefit as before may require higher gearing than many prudent investors prefer. Taking on more debt means higher risk. At Futureneers, we believe in keeping risk measured and manageable.
Our principles are simple:
We keep gearing and projections conservative.
We focus on the real value of the underlying projects.
We avoid chasing returns by increasing financial risk.
Our experience shows that real value and long-term safety come from quality projects, not maximum leverage.
Why the Futureneers Energy 12B Fund Stands Out
167% Tax Deduction
For every R1 million invested, you receive a R1,670,000 tax deduction under Section 12B. We believe our approach strikes a prudent balance between tax efficiency and real risk.Prudent Gearing, Not Excessive Leverage
Our fund uses effective gearing of approximately 40% (Loan-to-Value). This enhances your tax deduction while maintaining a responsible risk profile. We avoid the pitfalls of aggressive borrowing.Capital Protection: Only 25% at Risk
With an upfront 75% tax saving, only a quarter of your original capital is truly at risk. This significantly reduces your real out-of-pocket exposure.Accelerated Payout: 25% Returned in First 5 Years
Investors receive 25% of invested capital back within the first five years, providing early liquidity and flexibility.Long-Term Income Stream
You benefit from a healthy income stream for the following 15 years, supported by reliable, blue-chip JSE listed offtakers.
When Tax Benefits Shrink, Project Quality Counts More
Now that the windfall of 12BA is gone and the upfront tax deduction is more measured, the spotlight moves to where it always should have been: performance and management of the underlying assets.
Futureneers has always set itself apart here:
Every project is handpicked, with blue-chip offtakers and strong, long-term cash flows.
Our team is hands-on, actively managing contractors and projects throughout every phase.
We structure and manage our funds like a business. This is not just a tax product that locks away capital.
Our results speak for themselves:
Zero defaults across more than R250 million in our solar portfolio over the past decade.
Consistent outperformance on yield.
Investors receive their SARS refunds within weeks.
Not Just Tax Relief, but a Solid Investment
The Section 12B deduction remains generous, but today’s investors are looking for more than a tax break. They want quality, reliability, and impact. With Futureneers, your capital does more than secure a deduction. It builds real solar infrastructure that delivers yield, supports businesses, and leaves a visible legacy. You do not have to accept excessive leverage to access the benefit.
Early Action, Enduring Value
Futureneers is now accepting early-bird allocations for the 2026 tax year, with preferred terms and a targeted 10% annualised return for investors who act decisively. There are no limited-time gimmicks, just genuine benefits for those who understand the value of early action in a tightening market.
Our approach remains simple: focus on quality, avoid unnecessary risk, and build real, lasting value.
Final Thought: In Today’s Market, Good Judgment Matters Most
Section 12BA has ended. Section 12B remains, offering a new kind of opportunity for investors who value substance over hype. If you want to see the numbers, review our track record, or discuss how to structure your investment for both safety and yield, contact Futureneers for a confidential conversation with a director. There is no hard sell, just the facts and a decade-long record you can trust.
In a changing world, smart money does not chase headlines. It finds quality and builds the future.
No pitches, just performance!!