The renewable energy sector is facing new challenges accessing a rebate on imported solar panels following the release of updated guidelines by the International Trade Administration Commission of South Africa (ITAC) in May. The rebate was introduced to offset the 10% import tariff on solar panels and support the rollout of renewable energy projects.
The updated rules have unintentionally imposed a costly limit on rebate access, according to Pieter du Plessis, COO of XA Global Trade Advisors. In a recent webinar, he explained that importers, who previously applied for the rebate as needed, are now restricted by a quota system based on past order volumes and ITAC’s calculation of the local market shortfall.
Importers are also limited to a single rebate application per 12-month period, regardless of how many projects they are working on. Du Plessis said this approach is problematic as ITAC’s formula does not account for the rapid increase in project sizes or the growing number of renewable energy projects underway.
“Unlike steel importers, solar panel importers can’t get confirmation from local manufacturers to secure a tariff exemption,” Du Plessis said. “Locally available products may not fit a project’s design but this isn’t considered in the ITAC formula – leading to unpredictability and cost escalations.”
Du Plessis said the current system undermines ITAC’s original intent to bridge supply gaps where local manufacturing cannot meet demand. “We’ve had clients who previously successfully applied for rebate permits and, at best, get 20% of the required volume allocated,” he noted.
XA Global Trade Advisors is canvassing industry support to present confidential data on required import volumes to ITAC.
