Sweden’s plan to reduce tax for self-consumption by 98% moves forward

The Swedish government is proposing a 98% reduction to the tax on electricity generated by renewable energy power generators over 255 kW. The new rules were submitted to local Parliament and, if approved, would come into force by January 2018 at the latest.

Sweden had approximately 140 MW of installed PV capacity at the end of 2016.

Image: [Alan]/Flickr

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The Swedish government has submitted its proposal to effectively cancel the tax on power generated by renewable energy systems for self-consumption.

The government announced its plan to effectively cancel the tax for solar power systems with a capacity over 255 kW in November. At the time, Sweden’s finance minister Magdalena Andersson said the tax could not be completely canceled due to technical reasons, but she confirmed that it would be slashed by 98%.

According to the document submitted to the Parliament, the tax would be reduced from SEK 0.295 ($0.03) per kWh to SEK 0.005 (0.0005$) per kWh. The government said the new rules are expected to come into force on July, 1, 2017, or at the latest on January, 1, 2018.

The government also stressed that it intends to completely remove the tax, and that it is in discussion with the relevant EU authorities on the matter.

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A few days earlier, the Swedish government announced another plan to drop building permits for PV. The exemption for solar is part of a broader package of newly simplified building regulations set out by the national government.

In the summer 0f 2016, the coalition government sidled with the leading parties in Sweden to commit to a goal of 100% renewable energy by 2040.

The Swedish Solar Association recently told pv magazine that its aim is for PV to account for 10% of the country’s 100% renewable goal.

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