Tax regulation mechanisms III (Tax reduction for micro production of renewable electricity)
Updated: 17.01.2019
Author: Oskar Vågerö
A tax reduction is provided for the excess electricity fed from micro-producers of electricity generated from renewable energy sources into the grid at the basis of the kWh of renewable electricity fed into the grid at the connection point during a calendar year.
Eligible technologies
Electricity produced from solar, wind, wave, tidal, hydro, geothermal or biomass plants is eligible for tax reduction (Chapter 67 § 27-29 Act No. 1999:1229).
| Wind energy | Eligible (Chapter 67 § 27-29 Act No. 1999:1229). |
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| Solar energy | Eligible (Chapter 67 § 27-29 Act No. 1999:1229). |
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| Geothermal energy | Eligible (Chapter 67 § 27-29 Act No. 1999:1229). |
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| Hydro-power | Hydroelectric, wave and tidal power plants are eligible for tax reduction (Chapter 67 § 27-29 Act No. 1999:1229). |
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| Biomass | Eligible (Chapter 67 § 27-29 Act No. 1999:1229). |
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Amount
The tax reduction amounts to 60 öre (€ct. 6.3) per kWh of renewable electricity fed into the grid at the access point during the calendar year. However, the tax reduction may not exceed 30,000 kWh or the amount of electricity withdrawn from the electricity grid at the access point during the same year per natural person / legal entity or per connection point (Chapter 67 §§ 30, 31 Act No. 1999:1229).
Addressees
The tax reduction applies to private individuals and companies that produce and feed in and take out the renewable electricity at one and the same connection point and that have a maximum fuse of 100 amps at the connection point and notified the grid operator about the production and feeding in of renewable electricity (Chapter 67 § 27 Act No. 1999:1229).
Procedure
Process flow | The request for tax reduction should be made in the tax return at the end of the calendar year s (Chapter 67 § 28 Act No. 1999:1229). |
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Competent authority | The Swedish Tax Authority (Skatteverket). |
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Sweden
