The Swedish Parliament has approved a government’s proposal to effectively cancel the tax on power generated by PV systems for self-consumption with a capacity of over 255 kW. The proposal was submitted by the Social Democrat-led government in late March, while the plan to cancel the tax was announced in November.
The tax, which was introduced in early 2016 by the same government that has now decided to abolish it, was not completely cancelled, but it was reduced from SEK 0.295 ($0.03)/kWh to SEK 0.005 (0.0005$)/kWh. Sweden’s finance minister Magdalena Andersson had previously explained that the tax could not be completely canceled due to technical reasons, but that it would be slashed by 98%.
The government, however, intends to completely remove the tax, and it is in discussion with the relevant EU authorities on the matter.
Sweden has topped 140 MW of cumulative installed PV capacity as of the end of December 2016, according to the latest statistics from Swedish energy agency Energimyndigheten. Newly installed capacity for 2016 was approximately 13 MW. In 2015 and 2014, the country saw the addition of around 37.6 MW and 36.2 MW, respectively.
Last year’s poor performance was mainly due to the solar tax.