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).

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).

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)

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)

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).

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)

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).

Sweden

Further information

Basic information on legal sources