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Tax on self-produced electricity changes: "Step in the right direction"

February 18, 2022
Property owners said to be disadvantaged by the tax system. Photo: Creative Commons.
Property owners said to be disadvantaged by the tax system. Photo: Creative Commons.
Solar power plants that have an installed peak power of less than 500kW are exempt from tax, the Parliament announces. The organization Svensk Solenergi praises the decision - but sees that the tax system may inhibit the expansion of solar power.

Last week, the parliament approved the government's proposal for tax exemptions for self-produced electricity. This concerns facilities that have a peak power of less than 500 kW.
The organization Svensk Solenergi writes on its website that it is "a long-awaited decision for the solar energy industry."

"This is a small step in the right direction. Tax on self-used electricity is in practice a punitive tax on a single type of power, solar power. Together with others, we have produced a report that shows that Sweden is relatively alone in Europe regarding the tax. Now we are rolling up our sleeves and working to get it completely removed," says Anna Werner, CEO of Svensk Solenergi, on the organization's website.

The previous peak power for avoiding tax on electricity produced from own solar power plants was 255 kW. However, Svensk Solenergi sees a continued problem with the tax system and wants it to be completely abolished in the future. In other European countries, self-produced electricity is not taxed, and the organization believes that it is primarily Swedish property owners who install several smaller plants who are affected.

"Anyone who has many small plants that together have an installed peak power of over 500 kW will unfortunately continue to be liable for tax, but the tax is reduced to 0 öre per kWh (currently 0.6 öre per kWh). For some property owners, the heavy administration will therefore continue and at the same time inhibit the expansion of solar power, even though this tax will not give the state a penny," writes Svensk Solenergi.

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