Section 12B allows for a deduction from corporate income tax on a 50|30|20 basis over three years in respect of investments in electricity from wind, energy, hydro (<30 MW) and biomass as well as the production of bio-diesel and bio-ethanol. From January 2016, a specific provision is made for small scale solar PV for self-consumption up to 1,000 kW, allowing a 100% investment allowance in year one. For many small to medium size businesses, this allowance can make solar electricity financially more attractive than grid electricity. However, make sure you choose the best incentive available for your specific business as the compounding of incentives is generally not allowed. Download 12B Abstract.