ANUVA Green Partnerships
Tax-enhanced, long-term ownership of solar assets.
The structure
ANUVA Green Partnerships (AGPs) are tax-transparent partnerships that allow the Section 12B deduction to flow directly to investors.
Each AGP invests in a portfolio of qualifying solar assets, typically funded through a combination of investor equity and non-recourse debt.
Return profile
AGP returns typically move through three phases:
- 1
Investment & tax benefit
Capital is invested and the Section 12B tax benefit is realised.
- 2
Debt repayment
Solar income services and repays the underlying debt.
- 3
Unencumbered yield
Once debt is repaid, investors benefit from materially higher ongoing distributions.
ANUVA targets an after-tax IRR of 15%+ over the investment term.
At a glance
- Vehicle type
- En commandite partnership
- Instrument
- Partnership interest
- Investment objective
- Tax Enhanced Returns
- Investment horizon
- Long-term
- Minimum cash investment
- R500,000
- Target gearing
- 50% non-recourse debt (to investors)
- Tax deduction
- 200% of capital invested (2x cash)
- Distribution policy
- Excess cash distributed at least annually
- Fees
- 2% transaction, 2% raising, 1.5% p.a. management (or 7% of revenue)
- Liquidity
- No liquidity guarantee
- Closing date
- Annually, end of February
How it works
From cash investment to distribution.
Cash investment
Investor contributes cash (e.g. 50% of gross investment value).
Debt funding
Balance is funded by a loan — initially from AIF or a developer, later refinanced by senior debt.
Underlying asset
Combined funding acquires the solar PV / backup asset, held by the AGP.
Section 12B deduction
The AGP passes through a tax deduction equal to 200% of the investor's cash contribution.
Offtaker / PPA
The asset generates revenue under a long-term power purchase agreement with a vetted offtaker.
Distributions
Excess cash, after costs and debt service, is distributed to investors at least annually.
Illustrative example
Understanding the tax deduction.
Your decision is about paying tax or making an investment. ANUVA Green Partnerships (AGPs) are a powerful way to increase your investment capacity with an accelerated tax allowance.
| Cash investment | R1,000,000 |
| Loan (50%) | R1,000,000 |
| Gross investment value | R2,000,000 |
| Tax deduction (200% of cash invested) | R2,000,000 |
| Tax refund / saving (illustrative, at a 45% marginal rate) | R900,000 |
| Net cash equity after refund | R100,000 |
This example assumes a 45% marginal tax rate and is for illustration only. It shows the mechanics of a deduction, not a promised refund — your own tax saving depends on your personal marginal rate and tax position, and is only realised once SARS has assessed your return.
FAQ
Frequently asked questions.
How do I know SARS will allow the tax deduction?
ANUVA has secured a ruling from SARS and has a track record of successful Section 12B deductions. The ANUVA team is also supported by an in-house tax attorney and professionals.
What security do I provide on the loan component?
None. All investment-related debt is secured by the solar equipment and contracts, with no recourse to you personally.
I'm a PAYE employee — can I invest?
Yes, but your tax saving is only refunded once your annual tax return has been assessed by SARS — typically 6 to 8 months.
Can I use the deduction to offset capital gains tax?
Yes — all taxable income, except dividends tax, can be offset.
Is there a limit to the size of my investment?
In theory, no — but ANUVA seeks to share each opportunity with multiple investors and spreads availability accordingly.
Who repays the bank funding?
Repayment of the debt is included in the expenses paid by the partnership. All investor returns are net of loan repayments.
How do I exit?
ANUVA does not provide an exit guarantee. A purchaser of your interest would also benefit from a Section 12B deduction, which can enhance the marketability of your stake.
Interested? Get in touch with an Investment Consultant: