Financing
RENTAL
Meridian Energy’s holistic approach ensures that our clients won’t be faced with CAPEX outlay decisions without favourable economic benefits. We can assist in removing the CAPEX hurdle by providing full maintenance rental options with the following attributes:
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Rental options available for both lighting and photo-voltaic (PV) solutions
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Replace electricity costs with rental costs from the projects kilowatt hour savings
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Potential for positive cash-flows from day one
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Rental terms from 3 to 10 years with ownership options
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Rental options with 0% escalations are advantageous to unknown electricity tariff increases
Tax considerations
Businesses that make use of renewable energy solutions are entitled to tax incentives that could substantially drive down their operating costs. All businesses, especially small to medium-sized enterprises (SMEs), should take advantage of this. Income Tax Benefits include:
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Section 12b Allowance – The amended Section 12b provision provides for an accelerated capital allowance of 125% in the first year, in respect of photo-voltaic solar plant installations of less than 1 megawatt.
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Section 12L Allowance – Section 12L provides an allowance for businesses to implement energy efficiency savings on all carriers (not limited to electricity) but excluding renewable energy sources.
Carbon tax
South Africa stands on the precipice of a “new dawn” following the 2018 Budget Speech. It looks as if there’s going to be a new kid on the block this year.
Carbon tax aimed at cutting pollution it is set for its introduction to South Africa at an initial marginal tax rate of est. R120 per tonne of CO2 produced.
To allow businesses time for transition, a basic percentage-based threshold of 60% will apply, below which tax is not payable.
