Section 12L tax recovery
95c per kWh. Money your portfolio is leaving on the table.
Section 12L rewards verified energy savings, but the measurement and verification burden means most portfolios never claim. Automate the evidence trail and an unclaimed entitlement becomes recurring cash.
The incentive, in numbers
Deduction per verified kWh saved under Section 12L
Deduction value of one GWh of verified annual savings
Energy reductions GreenBDG projects typically deliver
Carbon tax per tCO₂e under Phase 2 that savings also avoid
How recovery works
From meter reading to tax deduction.
Baseline and metering plan
We establish the measurement and verification baseline for each qualifying project, using the metering already feeding the monitoring platform wherever possible.
Verified savings
The automated audit engine tracks energy savings against the baseline continuously, with the evidence trail SANAS-accredited M&V bodies require.
Claim and recover
Verified savings convert into the Section 12L deduction at 95 cents per kWh, claimed through your tax return with documentation that stands up to SARS scrutiny.
Repeat every year
Because measurement runs continuously, recovery recurs. What was once an unclaimed entitlement becomes an annuity that funds the wider programme.
FAQ
Section 12L questions
What is the Section 12L energy efficiency incentive?
Section 12L of the Income Tax Act allows a deduction of 95 cents per kilowatt hour of verified energy savings against a measured baseline. It rewards genuine, evidenced efficiency improvements across electricity and other energy carriers.
Why do most portfolios never claim it?
Because the measurement and verification burden is heavy: a defensible baseline, continuous measurement and an accredited M&V process. Done manually through one-off consultants it is expensive and slow. GreenBDG automates the evidence trail, which is what makes recurring claims economic.
How much could our portfolio recover?
It depends on consumption and the efficiency projects available. As an order of magnitude, one gigawatt hour of verified annual savings is worth R 950 000 in deductions. Our one-page ROI model quantifies it for your buildings before you commit to anything.
Does this work with the shared-savings model?
Yes. Under the shared-savings commercial model, the programme funds itself from verified tax recovery and energy savings, which removes the budget-risk conversation entirely.
Never lead with a demo. Lead with the ROI.
Send us twelve months of utility data for one building and we will return a one-page business case: penalties avoided, energy Rands saved and Section 12L cash recoverable.