The National Treasury has officially extended the Section 12L (S12L) energy efficiency tax incentive to 31 December 2030, providing companies across sectors with a longer window to reduce taxable income through verified energy savings.
Businesses can claim deductions of up to 95c per kilowatt-hour saved, directly improving cash flow and reducing energy spend.
A Timely Boost for Industry
With rising electricity tariffs and continued grid instability, the extension of S12L comes at a critical time. Energy efficiency is no longer optional. It’s essential for business resilience and competitiveness.
Key facts about the S12L extension:
- 95c/kWh tax deduction for verified savings
- Applies to existing or new energy efficiency projects
- Available across sectors: mining, manufacturing, commercial and public infrastructure
- Requires Measurement and Verification (M&V) by a SANAS-accredited body
How ECS Helps You Maximise S12L Savings
Energy and Combustion Services (ECS) is a SANAS-accredited Inspection Body (EEMV004) with a proven track record in Measurement and Verification (M&V) for energy efficiency projects under S12L.
Our S12L results so far:
- 47 approved projects
- Over 860 million kWh of energy savings
- 100% success rate
- R125 million in projected tax savings from current projects
Whether you’re planning a new efficiency project or want to verify savings on existing systems, ECS can guide you through the S12L process from start to finish, ensuring compliance and maximising returns.
About ECS
At ECS, we’re more than technical experts. We’re trusted energy partners.
We influence our industrial and mining customers’ sustainability achievements by solving the hard problems together, using enabling technologies and insights created by our knowledgeable and passionate team, in an environment that embraces a culture of innovation. We bring deep industry experience, accredited capabilities, and a practical approach to helping South African businesses reduce energy costs, lower emissions, and qualify for tax savings under Section 12L.
Act Now: Don’t Leave Money on the Table
The 2030 extension is a golden opportunity. But it won’t benefit your business unless you act. Unlock your S12L potential with ECS.
- Contact us today to assess your energy efficiency opportunities and explore how we can help you save energy, save tax and future-proof your operations.