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Tax on self-generated electricity changes: "Steps in the right direction"

February 18, 2022
Property owners are said to be disadvantaged by the tax system. Photo: Creative Commons.
Property owners are said to be disadvantaged by the tax system. Photo: Creative Commons.
Solar installations that have a installed peak power below 500kW will not have to pay tax, the Riksdag announces. The swedish solar energy organisation hails the decision - but sees that the tax system can hamper the expansion of solar power.

Last week, parliament passed the government's proposal for tax exemptions for self-generated electricity. These are plants with a peak power of less than 500 kW.
The swedish solar energy organization writes on its website that it is "a long-awaited decision for the solar industry."

"This is a small step in the right direction. Self-use electricity tax is in practice a punitive tax on a single power, solar power. Together with others, we have produced a report that shows that Sweden is relatively alone in Europe about the tax. Now we roll up our sleeves and work on it to remove it completely," says Anna Werner, CEO of Svensk Solenergi, on the organization's website.

The previous peak power to avoid tax on electricity produced from own photovoltaic plants was 255 kW. But Svensk Solenergi sees a continuing problem with the tax system and wants it to be completely abolished in the future. In other European countries, self-generated electricity is not taxed and the organisation believes that it is mainly Swedish property owners who install several smaller plants that are affected.

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

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