The team at Alumni Energy Investments Ltd. has decided to create an investment opportunity and related energy saving service company. The investment opportunity will function through a Venture Capital Company (VCC) tax regime (specific to South Africa) and this will provide investment for the operation of the energy saving service company. The saving scheme intended for investment and launch will entail providing customers with a complete energy saving package, tailored to their needs.
The Venture Capital Company (VCC) tax incentive for investors has been made by the South African government to assist the economic growth of small and medium-sized businesses and junior mining exploration to access equity finance. The VCC allows specific tax payers to receive a tax deduction of 41% which goes towards covering the investment in the energy saving systems. End-customers can deduct a further 26% from their taxable incomes which means that two-thirds of the investment is covered.
There is a clear need for energy saving services in South Africa. At present there is an energy crisis in the country. Besides for the construction of new large power stations, the national response has been the encouragement of large private energy producers, but as of yet there is no concerted effort to produce or save energy on a small private landowner level.