Where financial expertise

meets green innovation

Founded by industry leaders, Twelve B Green Energy Fund is dedicated to making high-impact renewable energy investments accessible, transparent, and 100% tax-efficient.

About Twelve B

Pioneering Green
Energy Investment

The Twelve B Fund is a private infrastructure fund providing eligible taxpayers, including individuals, trusts, companies, and pension funds, with access to income-generating renewable energy assets. Investors benefit from a SARS-approved 100% Section 12B tax deduction, making it an effective way to reduce tax liability while supporting South Africa’s clean energy transition.

The fund was launched by Grovest, pioneers of Section 12J and one of South Africa’s largest small-cap fund administrators, with approximately R3.5 billion in assets under administration. Their track record and experience in tax-efficient investment structures have provided a strong foundation for the Twelve B Fund strategies.

What is Section 12B

Section 12B of the Income Tax Act provides accelerated depreciation allowances for investments in qualifying renewable energy assets. In simple terms, it allows investors to deduct the full cost of their investment from their taxable income in the year the investment is made.

In practice, this creates a rare opportunity to substantially lower your tax bill while investing in tangible, income-producing infrastructure.

Key benefits

01

Deduct 100% of your investment from your taxable income in year one *

02

Priority profits of 7% – 8% per annum (paid bi-annually)

03

Significantly reduce your personal or corporate tax liability

04

Excess 12B allowance not used in any tax year can be carried forward to the next tax year

*Up to 200% tax deduction once gearing has been introduced

Key fund metrics

A snapshot of your investment’s tax benefits, returns, and income

Average annual yield

(on gross investment)

0 %

Risk Capital

0 %

IRR before tax

(net of fees and taxes on risk capital)

0 %

Section 12B tax deduction

up to

200%

Investment term

0 years

(early exit on application)

Asset strategy

Moderate-risk

Twelve B Green Energy Fund Journey

From launch to ongoing returns, a clear timeline of how Twelve B Green Energy Fund has progressed.

2009 - 2015

Policy ignites opportunity, capital finds direction

In 2009, South Africa introduced Section 12J to channel venture capital into productive, high-impact sectors, encouraging private investment that supports real economic growth.

Grovest was founded in 2015 to capitalise on this opportunity, making Section 12J investments accessible to retail investors and structuring capital around tangible, income-generating assets.

With the subsequent introduction of Section 12B, Grovest expanded its focus to include renewable energy, directing investment toward real infrastructure that strengthens energy security, aligning capital with economic demand rather than paper returns.

2018 - 2022

From crisis to opportunity

By 2018, load shedding had become part of everyday life. Businesses stalled, households felt the strain, and renewable energy shifted from option to necessity.

Section 12B offered investors a way to back real infrastructure while gaining meaningful tax benefits, and Grovest saw a clear alignment: a national energy gap, growing demand for alternatives, and a proven incentive ready to deploy. When government expanded the framework with Section 12BA, introducing an enhanced allowance for renewable energy investment, Grovest moved quickly.

In 2023, it launched the Twelve B Fund off the back of this new incentive, channelling private capital into solar projects that deliver immediate tax deductions, long-term contracted cash flows, and tangible impact on South Africa’s energy supply.

2023 - Feb 2027

From demand to impact

As load shedding worsened, investor interest in renewable energy surged.

Section 12B became one of South Africa’s most talked-about incentives, and Grovest’s Twelve B Green Energy Fund grew alongside it.

Fund I proved the model, Fund II and III expanded investor participation, and now Fund IV is launching, channeling private capital into solar projects that deliver tax-efficient returns, long-term contracted cash flows, and real contribution to the country’s energy supply.

Is investing in Section 12B right for you?

Section 12B is most beneficial for taxpayers with significant taxable income and a medium to long-term investment horizon.

High-Income Individuals

Professionals, executives, and business owners with marginal tax rates of 41-45% seeking to reduce capital gains and annual tax liability.

Profitable Corporates

Companies with taxable profits looking to deploy capital tax-efficiently while supporting sustainability goals.

Trusts

Trusts with taxable income and capital gains, seeking to reduce their tax burden while deploying capital into productive, real-world assets that generate long-term returns.

Stay Informed with Twelve B

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