Promotion in Sweden

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Updated: 17.01.2019

Author: Oskar Vågerö

Summary of support schemes

  • Quota system. The main incentive for the use of renewable energy sources is a quota system in terms of quota obligations and a certificate trading system. The Electricity Certificates Act obliges energy suppliers to prove that a certain quota of the electricity supplied by them was generated from renewable energy sources. Energy suppliers shall provide this evidence by presenting tradable certificates allocated to the producers of electricity from renewable sources.
  • Tax regulation mechanisms. 
    Electricity generated from wind energy is eligible for tax privileges consisting in a reduction of the real estate tax as defined in the Act on the Federal Real Estate Tax. 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 as authorised by the Energy Tax Act. Since 2015, a tax reduction for the micro production of renewable electricity is in place. 
  • Subsidy. Sweden grants subsidies for photovoltaic installations. 

Technologies

Basically, all technologies used for the generation of electricity from renewable sources are eligible for the incentives applicable in Sweden. Some incentives are limited to certain technologies.

Statutory provisions

  • Act No. 2011:1200 (Lag om elcertifikat – Electricity Certificates Act)
  • Regulation No. 2011:1480 (Förordning om elcertifikat – Electricity Certificates Regulation)
  • Act No. 1994:1776 (Lag om skatt på energi – Energy Tax Act)
  • Regulation No. 2009:689 (Förordning om statligt stöd till solceller – Regulation on State Subsidies for Solar Panels)
  • Act No. 1984:1052 (Lag om statlig fastighetsskatt – Act on the Federal Real Estate Tax)
  • Act No. 1999:1229 (Inkomstskattelag – Income Tax Act) 

Sweden
Electricity
Heating & Cooling
Transport

Further information