Sweden exempts from energy tax on self-consumption all PV systems of up to 500 kW

On the top of the new fiscal measure, the Swedish government has also announced that the rebate scheme for rooftop PV, which was originally scheduled to be closed this year, will be continued in 2021. It will only apply to municipalities and enterprises and with a limited budget of 260 million SEK ($29.6 million), however.

The Swedish government has announced it will exempt all PV systems up to 500 kW from the payment of tax on electricity generated by renewable energy power generators. Currently, the size limit is 255 kW.

“The new limit of 500 kW means that the installations will generally be larger and be able to have better economies of scale,” said Swedish PV association Svensk Solenergi in a statement on its website. “Of course, we continue to fight for this limit to be removed completely.”

Furthermore, the government announced that the rebate scheme for rooftop PV, which was originally scheduled to be closed this year, will be continued in 2021, but only for municipalities and enterprises and with a limited budget of 260 million SEK (US$29.6 million).

For comparison, the government had allocated SEK1.2 billion for the program in 2020.

The Swedish authorities said the program will now cover 10% of the cost of buying and installing a PV system, while last year it covered 20% of costs.

The Swedish Energy Agency has thus far devoted more than SEK3.4 billion to the multi-year initiative.

According to Swedish Energy Agency, the country’s operational PV capacity increased from 411 MW at the end of 2018 to 698 MW at the end of 2019. In March, it revealed that it expects solar generation to surge in the 2018-22 period, alongside a predicted rise in wind power output.

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