Section 12L tax incentive

Section 12L Energy Efficiency Tax Incentive Extended to 2030

South African businesses can now claim energy tax deductions until the end of 2030, unlocking major savings and sustainability gains.

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.

section 12l tax incentive

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.

FIELD SERVICE AUTOMATION MANAGEMENT

SmartOSR Service

TIME SCALES: Review

OBJECTIVE: Prioritisation Value & Opportunity Potential/Scoping

FOCUS:

  • Initiative & Project Technical Review for Energy and Carbon
  • Key Value Driver Review
  • Initiative & Project Prioritisation and Ranking by Type and Impact
  • Abatement Cost Profiling

S-ARID Solution

TIME SCALES: Continuous/Internal

OBJECTIVE: Energy Management

FOCUS:

  • IIoT & Sensors
  • Fuel Energy (Traditional)
  • Fuel Energy (Green & Renewable)
  • Electrical Energy (Grid Traditional)
  • Electrical Energy (Local & Grid Renewable)

SmartEPS Solution

Time Scales: Long

Objective: Strategic

FOCUS:

  • Global Simulations and Assessments
  • Target Achievement Simulation
  • Scope 1,2 & 3 Emissions
  • Carbon Abatement Assessments
  • Project and Technology Option Assessments
  • Prescription Analytics
  • Performance Tracking (Long-Term)
  • Life of Operations Greenhouse Gas Assessments

SmartRoad Solution

Time Scales: Continuous/Internal

Objective: Energy Measurement

Focus:

  • IIoT & Sensors
  • Fuel energy (traditional)
  • Fuel energy (green & renewable)
  • Electrical energy (grid traditional)
  • Electrical energy (local & grid renewable)

SmartFEMS Solution

Time Scales: Continuous/Internal 

Objective: Energy measurement

Focus: 

  • IIoT & sensors
  • Fuel energy (traditional)
  • Fuel energy (green & renewable)
  • Electrical energy (grid traditional)
  • Electrical energy (local & grid renewable)

SmartDSM Solution

Time Scales: Continuous/Internal 

Objective: Energy Management

Focus:

  • IIoT & Sensors
  • Fuel Energy (Traditional)
  • Fuel Energy (Green & Renewable)
  • Electrical Energy (Grid Traditional)
  • Electrical Energy (Local & Grid Renewable)

PEMS Solution

TIME SCALES: Short /Medium 

OBJECTIVE: Early assessment of actual performance

FOCUS:

  • Short Interval Control
  • Automated Reporting
  • Performance Verification
  • Predictive Analysis
  • Diagnostic Analysis
  • General Prescriptive Analysis
  • Unit Operations Simulation
  • Demand Profiling
  • Statutory Emissions Reporting Support
  • Feeds into other Reporting Systems