South Africa’s Energy Subsidies Inventory, 2025 Data, Definitions, and References Annex

The report inventories quantified energy subsidies in South Africa, detailing nominal and real values from FY 2018 to FY 2025. It identifies a wide range of support mechanisms, including VAT zero-rating for liquid fuels, Eskom bailouts, and carbon tax exemptions, while also listing specific incentives for renewable energy and energy storage. The document applies the World Trade Organization's definition of subsidies to categorize these financial contributions and provides a breakdown of government guarantees as contingent liabilities.

• Total quantified nominal energy subsidies in South Africa rose from ZAR 44,151 million in FY 2018 to ZAR 197,971 million in FY 2025.
• Carbon tax exemptions represent a significant and growing portion of energy subsidies, with nominal values increasing from ZAR 0 in FY 2018 to ZAR 57,211 million in FY 2025.
• Eskom bailouts are classified as subsidies because they are government transfers converted to equity that confer a benefit, with nominal values reaching ZAR 64,000 million in FY 2025.
• VAT zero-rating for petrol, diesel, and illuminating paraffin is a major liquid fuel subsidy, with a nominal value of ZAR 40,914 million maintained from FY 2023 through FY 2025.
• Direct energy-related government guarantees, which are treated as contingent liabilities rather than direct fund transfers, totaled ZAR 587,096 million in FY 2025, primarily supporting Eskom and independent power producers.
• The government provides several tax-based incentives for renewable energy, including Section 12B for accelerated depreciation and Section 12BA, which offered a one-off 125% upfront deduction for assets bought between 1 March 2023 and 1 March 2025.
• The Solar water heater programme is described as having significant mismanagement, with ZAR 325 million in storage fees accumulated over six years to 2024 being classed as 'fruitless and wasteful expenditure'.

APA

Halsey, R., & Bridle, R. (2025). South Africa’s Energy Subsidies Inventory, 2025 Data, Definitions, and References Annex. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-12/the-energy-tab-annex.pdf

Chicago

Halsey, Richard, and Richard Bridle. South Africa’s Energy Subsidies Inventory, 2025 Data, Definitions, and References Annex. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-12/the-energy-tab-annex.pdf.

Wikipedia

{{cite report |last1=Halsey |first1=Richard |last2=Bridle |first2=Richard |title=South Africa’s Energy Subsidies Inventory, 2025 Data, Definitions, and References Annex |publisher=International Institute for Sustainable Development |date=December 2025 |url=https://www.iisd.org/system/files/2025-12/the-energy-tab-annex.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{halsey2025south, author = {Halsey, Richard and Bridle, Richard}, title = {{South Africa’s Energy Subsidies Inventory, 2025 Data, Definitions, and References Annex}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/system/files/2025-12/the-energy-tab-annex.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }