Tax regulation mechanisms II (Energy tax reduction)
Updated: 17.01.2019
Author: Oskar Vågerö
The state of Sweden levies a tax on the consumption of electricity; the persons liable to this tax are commercial electricity producers and suppliers (Chapters 11 §§ 1, 5 Act No. 1994:1776). Electricity produced in electricity generators with a capacity lower than 50 kW is not taxable. In case of electricity generated from wind, wave and solar this capacity margin is higher. (Chapter 11 § 2 Act No. 1994:1776).
Eligible technologies
Electricity produced in electricity generators with a capacity lower than 50 kW is not taxable. In case of electricity generated from wind, wave and solar this capacity margin is higher (Chapter 11 § 2 Act No. 1994:1776).
| Wind energy | Electricity produced from wind energy in electricity generators with a capacity lower than 125 kW is not taxable (Chapter 11 § 2 Act No. 1994:1776). |
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| Solar energy | Electricity produced from solar energy in electricity generators with a capacity lower than 255 kW is not taxable (Chapter 11 § 2 Act No. 1994:1776). |
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| Geothermal energy | Electricity produced from geothermal energy in electricity generators with a capacity lower than 50 kW is not taxable (Chapter 11 § 2 Act No. 1994:1776) |
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| Biogas | Electricity produced from biogas in electricity generators with a capacity lower than 50 kW is not taxable (Chapter 11 § 2 Act No. 1994:1776) |
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| Hydro-power | Electricity produced from wave energy in electricity generators with a capacity lower than 50 kW is not taxable (Chapter 11 § 2 Act No. 1994:1776). |
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| Biomass | Electricity produced from biomass in electricity generators with a capacity lower than 50 kW is not taxable (Chapter 11 § 2 Act No. 1994:1776) |
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Amount
The energy tax is 34.7 öre per kilowatt hour (€ct 3.4 per kWh) (Chapter 11 § 3 par. 1 Act No. 1994:1776). For the calendar year 2020, the tax rates are multiplied by a factor based on the difference between the applicable electricity price of June the previous year and the price as of June 2018 (Chapter 11 § 3 par. 2 Act No. 1994/1776). By the end of November, the Government will determine the recalculated tax amount to be levied for the upcoming year (Chapter 11 § 3 par. 3 Act No. 1994/1776).
Electricity produced in electricity generators with a capacity lower than 50 kW is not taxable. In case of electricity generated from wind, wave and solar this capacity margin is higher (Chapter 11 § 2 Act No. 1994:1776).
Addressees
The persons liable to this tax are commercial electricity producers and suppliers (Chapter 11 §§ 5 Act No. 1994:1776).
Distribution of costs
| State | As the state levies the energy tax, it bears the costs arising from the tax privileges (Chapter 1 § 1 Act No. 1994:1776). |
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Sweden
