Running a more eco-friendly business tends to pay for itself, which is the part most guides skip. Lower energy use cuts your electricity bill, less packaging cuts material costs, and less travel cuts both fuel and time. The environmental case and the financial case point the same direction.
This guide covers three concrete changes and what each one actually involves, including a tax detail that has changed and is worth knowing before you plan around an outdated figure. Broader options for building sustainability into the business itself are in our list of green business ideas.
Move to solar, and know exactly what the tax incentive is now
Solar remains the clearest energy move available to a South African business, for two reasons that have nothing to do with climate: it cuts a rising electricity cost, and it reduces how exposed you are to load shedding.
The tax incentive has changed since this was last written up, and getting the current figure right matters if you are costing a system. Section 12BA offered a temporary 125% deduction on renewable energy assets brought into use between 1 March 2023 and 28 February 2025. That enhanced rate has expired and was not renewed in the 2025 or 2026 Budget.
What applies now is section 12B, which is permanent rather than temporary. For solar PV systems under 1 megawatt, which covers the overwhelming majority of small and medium business installations, the deduction is 100% in the first year the system is brought into use. Larger systems are written off over three years on a 50/30/20 basis. Confirm the current position with your accountant before committing capital, since incentive rates are exactly the kind of detail that changes at each Budget.
If you rent your premises, ask your landlord whether the building already has solar infrastructure or renewable-ready wiring. Commercial landlords are increasingly building this in, and retrofitting is more expensive than specifying it during a lease negotiation. Businesses considering the solar sector itself rather than just installing panels can read our guide on starting a solar business in South Africa.
Switch to reusable and recyclable packaging
Customers increasingly notice packaging, and it is one of the most visible signals of how seriously a business takes sustainability.
Three practical options. Reusable or returnable packaging, such as glass or durable containers that are cleaned and reused, works well for local delivery and repeat-customer models. Recyclable packaging made from card, paper, glass, metal or certain plastics suits general retail and shipping. Biodegradable packaging, made from materials that break down naturally, fits food and single-use applications where reuse is not practical.
The honest cost trade-off: better packaging usually costs more per unit upfront. It pays back through reduced shipping bulk, better brand perception, and increasingly through customers actively choosing suppliers on this basis. Do not claim an environmental credential you cannot back up. Overstating a sustainability claim is now the kind of thing that damages trust faster than having no claim at all. Our guide on the advantages of reusable packaging covers the practical side of making the switch.
Reduce business travel deliberately, not by accident
Remote work and video conferencing cut both cost and carbon at the same time, and this is the one change here that requires no capital investment at all.
Look specifically at recurring travel that could move online without losing anything: routine client check-ins, internal meetings, and conferences where attending virtually costs nothing but a few hours. Keep travel for what genuinely needs a physical presence, such as first client meetings, site inspections, and relationship-building events where being in the room matters.
The saving compounds. Less travel means less fuel, less time lost to transit, and a lower carbon footprint you can genuinely report, rather than one padded with offsets bought to cover activity that was avoidable in the first place.
Walk the talk, because customers now check
None of this works as marketing if the substance is not there. A business that brands itself as eco-friendly while doing none of the above is taking a real reputational risk, because customers and journalists increasingly verify sustainability claims rather than accept them at face value.
Pick the changes that are genuinely true for your business, be specific about what you have done rather than vague about intentions, and let the substance carry the message rather than the marketing.
Frequently asked questions
What is the current tax incentive for solar in South Africa?
Section 12B allows a 100% first-year deduction for solar PV systems under 1 megawatt. The temporary 125% incentive under section 12BA expired on 28 February 2025 and was not renewed.
Is eco-friendly packaging worth the extra cost?
It depends on your customers and margins, but it increasingly affects purchasing decisions and brand perception, and the cost gap between standard and sustainable packaging has narrowed as demand has grown.
Does reducing travel actually save meaningful money?
Yes, particularly for recurring internal and client-check-in travel that adds no more value delivered in person than delivered by video call.
Can a business claim to be eco-friendly without doing much?
Not safely. Vague or unsupported sustainability claims are increasingly scrutinised, and being caught overstating one does more reputational damage than never having made the claim.
Where do I start if I can only do one of these?
Solar tends to have the clearest and fastest payback given current electricity costs, but the right starting point depends on your biggest cost line, whether that is energy, packaging or travel.
Next step
Get an updated quote for a solar installation sized against your actual usage, and confirm the current section 12B treatment with your accountant before committing. That single change usually has the clearest and most measurable payback of the three.
This article was updated in September 2026.
