DO YOU WISH TO ImprovE THE RATING OF your ENERGY PERFORMANCE CERTIFICATE (epc)?

Building Registration at SANEDI

We will register your building on the SANEDI database FREE of charge. T&Cs apply.

Energy Efficiency Tax Incentive – Section 12L OF THE INCOME TAX ACT

This incentive allows a deduction of 95 cent per kilowatt hour of energy saved.  Energy savings is determined by comparing a 12-month baseline period prior to the energy efficiency improvements with a 12 months assessment period thereafter.  Energy efficiency interventions will therefore earn a tax deduction and improved EPC ratings.  Examples to consider are LED lighting, motion sensors, enhanced building management and air conditioning systems, occupancy behavioural changes, etc.

Building owners can improve EPC ratings, funding it partially through 12L incentives.  Installing energy efficiency measures before the end of 2021 will allow a 12-L tax benefit in 2022 and an improved EPC rating before the December 2022 deadline.

SAepc’s Certified Measurement and Verification Professionals (CMVPs) has  extensive experience in delivering Section 12L solutions with accompanying applications. 

Building management and other services

Currently there is no penalty for an Energy Performance Certificate (EPC) rating below the “D” benchmark.  This should change shortly, as regulators start focusing on the mitigation potential of the building sector to support government’s climate change objectives.

More importantly, though, is that a poor EPC rating indicates the potential for energy cost savings.  Addressing such opportunities will enhance your product offering in a highly competitive market that is becoming more cost and environmentally conscious.

The following can be part of your energy cost savings strategies:

Renewable Energy Certificates and Carbon Offsets

There are two market based instruments that could further enhance the value of your rooftop solar PV system. These are Renewable Energy Certificates (RECs) or carbon offsets (often referred to as carbon credits):

  • RECs represent the generation of 1 Megawatt Hour (MWh) from renewable energy sources such as solar PV, wind and biogas. Many companies that don’t have the ability to generate their own renewable energy will buy these RECs as a means to further reduce the carbon footprint of using grid electricity.
  • Carbon offsets represent the avoidance of 1 tonne of carbon dioxide (CO2 ) from the atmosphere by using renewable energy instead of the grid electricity. Building owners can sell carbon offsets from their solar PV systems to large emitting entities that want to reduce their carbon taxes.

Please contact us for further information.

Rooftop Solar Photovoltaics (PV)  

Under the existing EPC regulations the addition of renewable energy such as rooftop solar PV will not improve a building’s EPC rating.  But, technological enhancements together with increased cost reductions make this the cheapest energy option to most building owners.  Payback periods are often below 5 years, with a lifespan of 25 years.  It is therefore a “must have” for building owners needing some protection against load shedding and tariff increases. 

The electricity market is also developing away from the Eskom-monopoly. Generation installations smaller than 100MW no longer need to licence with the National Energy Regulator of South Africa (NERSA).  Municipalities are also realising the benefits of buying surplus electricity from embedded generators at a cheaper rate than Eskom’s. Electricity Feed-in Tariffs (EFTs) make it financially viable to building owners to install more solar PV panels and sell surplus electricity to municipalities.

SAepc fully supports the renewable energy revolution. Contact us for a rooftop solar PV feasibility assessment as part of doing your EPC.

Decarbonisation strategies 

Becoming compliant with the EPC regulations is the first step of a decarbonisation roadmap that will ultimately future proof your building assets and business. SAepc has comprehensive experience in energy as well as building asset management.  We understand the challenges and needs specific to the building sector. Working closely with your executive team, we can develop a decarbonisation roadmap that considers your business strategy, capital constraints, technology and implementation partners to ensure a sustainable transition to a green economy.   

    

Carbon tax management and consulting services

Many property owners have enough diesel backup generators in their portfolio to trigger an emissions reporting obligation with the Department of Forestry, Fisheries and Environment (DFFE). The reporting threshold is a minimum of 10 MW thermal installed capacity. As a “rule of thumb”, electrical output capacity in kVA can be multiplied with 3 to estimate the thermal input capacity of the combustion fuel.

SAepc offers the following service related to GHG emissions reporting and carbon taxes:

  • registration and submission of GHG emissions on the South African Greenhouse Gas Emissions Reporting System (SAGERS) hosted by the DFFE;
  • assistance with carbon tax calculations and returns;
  • carbon tax advisory services over diverse sectors such as mining, industrial, consumer and retail.