Wetility and Jaltech announce a R500m deal: 1000's of homes powered and big tax deductions for investors

Jaltech is excited to announce the successful closing of a R500 million solar transaction with Wetility, South Africa’s fastest-growing solar-as-a-service provider. The deal is set to power thousands of homes and businesses with clean energy while also creating an opportunity for investors to participate and, in so doing, enjoy a possible 235% tax deduction in the current financial year. 

The R500 million funding structure comprises a tailored blend of senior and equity capital, structured to match Wetility’s rapidly scaling operations. Jaltech, known for pioneering private market investment opportunities in sectors underserved by traditional financiers and generally inaccessible to private investors, identified Wetility as a high-impact business with strong potential to reshape South Africa’s residential and SME energy landscape, and has previously assisted Wetility with funding for its solar portfolio rollout.

The investment opportunity

This transaction has created an opportunity for Jaltech and its investors to generate significant risk-adjusted returns as well as a large tax deduction. This is achieved through the Section 12B investment structure, which will allow investors to claim a potential tax deduction of up to 235% of their investment amount, which could translate into a SARS refund of 106% of the invested amount in the first year. Put simply, if one invests R1 million, Jaltech aims to deliver a return of R1,060,000 within 12 months through the SARS refund. 

Other key features of the investment include: 

• Diverse exposure to up to 3,000 residential solar systems 

• 17.6% first loss buffer to protect your investment 

• High deployment capabilities 

Upcoming webinar

To provide further insight into the deal and investment structure, Biznews will be hosting a webinar on 26 June. Join Alec Hogg, Jonty Sacks, and Vincent Maposa (CEO of Wetility) as they unpack the strategic partnership and what it means for investors.

To register, please click here.