Solar energy is becoming increasingly popular amongst commercial and residential users, who are looking for alternatives to carbon‑based electricity supplied by South African utilities. Electricity in South Africa is becoming more expensive each year with regular double-digit tariff increases. In comparison, the technology improvements and reduction in cost of alternatives, particularly in the solar photovoltaic (PV) space, has resulted in solar energy solutions becoming more cost efficient to the end‑user.
More and more end‑users are now turning to the alternative space to reduce costs and cut emissions. The solar industry continues to experience unprecedented growth due to this movement away from carbon‑based electricity supply.
Bright Light Solar VCC plans to benefit from the increased demand in the solar PV space and has already secured a significant pipeline of end-users interested in signing long‑term electricity supply and services agreements.
Bright Light Solar VCC Ltd is a registered S12J Venture Capital Company in terms of the Income Tax Act (SARS VCC reference number VCC-0060) and is and an authorized Financial Services Provider, FSP number 47804.
S12J of the Income Tax Act allows Investors to deduct the full cost of their investment against their taxable income, thereby obtaining a full tax write-off of their investment capital. As long as the investment is held for a period of 5 years or longer, there is no recoupment of this tax deduction.
Benefits of the Bright Light Solar VCC structure to Investors:
- Investors can deduct the full cost of their investment against their taxable income in terms of s12J
- These deductions can be claimed by an individual, trust or company and can be offset against normal tax and capital gains tax
- Underlying operating businesses are able to claim another 100% Wear and Tear Allowance in terms of s12B
- Lowest fees in the s12J industry
- The first tranche fully deployed
- Targeted returns of 19% on Investment Capital, 23% on Risk Capital, based on exit in year 6
- Liquidity provided for investors wishing to exit in year 6 and beyond
- No performance fee on your tax saving
- Credit enhancement minimizes credit risk
- Semi-annual dividends paid from the first year of investment
Any individual, corporate entity or Trust, as a registered taxpayer in South Africa, automatically qualifies to invest in an approved S12J Venture Capital Company.