Green Energy Fund

125% Tax deductible. Moderate risk. ESG impact. Fund II is now closed.

It’s not often that retail investors can achieve such high returns with low to moderate risk exposure. The tax saving benefits, the high bi-annual cash distributions, and the underpinning of tangible assets are the cherry on the top!
Jeff Miller
CEO & Co-founder

What is Twelve B Green Energy Fund?

The first private equity fund that entitles taxpayers (individuals, trusts, companies) and pension funds to invest in a portfolio of renewable energy-producing assets, and benefit from the SARS-approved enhanced 125% Section 12BA tax allowance.

As an investor, these are your expected returns:

  • Targeted Internal Rate of Return (IRR): ≈ 18%+ (net of fees and taxes on risk capital) 
  • Average annual yield: 14.22% p.a. on your investment amount
  • Average annual yield: 32.51% p.a on risk capital invested
  • Bi-annual income distribution

Section 12BA of the Income Tax Act No. 58 of 1962 allows for a tax deduction in respect of certain qualifying assets (owned and brought into use after 1 January 2016) to reduce the taxable income of the taxpayer. These qualifying assets must be used for purposes of trade in the generation of electricity from renewable sources – SARS

For the period 1 March 2023 to 28 February 2025, the Section 12B allowance has been increased from 100% to 125% and no maximum cap on the output of the solar installation.

Why GROVEST?

The pioneers of Section 12J

Grovest was established on the premise of fostering entrepreneurship in South Africa and supporting Government initiatives to stimulate the private sector and local economy.

Pioneering Alternative Assets in South Africa

The journey began with Section 12J which became the fastest growing alternative asset class in South Africa, but our story continues to evolve.

Track Record

In 2014, we proudly operationalised the first Section 12J Venture Capital Company in South Africa. Today, we are the largest Section 12J administrator in South Africa, administering more than 30 VCCs, with assets under administration of R3.5 billion.

Turnkey solution

The sun may have set on Section 12J, but we remain on the journey with our clients in administering their funds and providing corporate advisory and administrative services, including ongoing compliance, governance and reporting.

Team

We have an experienced and diversified team across various disciplines including financial modeling, reporting, legal advisory, statutory, accounting, compliance and licensing frameworks.

Featured articles:

Perspectives in Action

Twelve B content

Enoch achieves a business-friendly Budget but government must act now to protect consumers’ pockets and jobs

Minister of Finance Enoch Godongwana has managed to tread the fine line with his 2023 Budget...

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Tax breaks for renewable energy investment, rooftop solar

South Africa’s finance minister, Enoch Godongwana, announced two tax measures aimed at boosting investment...

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The benefits of Grovest’s Twelve B Green Energy Fund

CEO Jeff Miller explains that the fund has no lock-in period or investment maximum, and...

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Rooftop solar tax breaks for South Africa — what to expect

Finance minister Enoch Godongwana is set to deliver South Africa’s budget speech on Wednesday, 22...

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South Africans can now get tax breaks for investing in renewable energy

South Africa’s first private equity fund which allows green energy investors to qualify for...

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Union seeks to overturn state of disaster to deal with energy crisis

Labour union Solidarity appealed to a court to overturn the state of disaster declared by...

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New green energy fund offers investors huge tax break benefits

Listen to the full podcast here. President Cyril Ramaphosa announced during his State of the...

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New solar investment fund launches in South Africa with a 100% tax break – but there’s a catch

A new solar and renewable energy fund is launching in South Africa, offering investors a 100...

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Looking for a new 12J fund administrator?

Are you looking for guidance, attention, visibility and confidence in the success of your 12J fund?

  • Grovest
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  • Rencell