Sweden Drops Solar Tax

November 23, 2016 Taxation in Sweeden

Solar Tax in SwedenSTOCKHOLM – Sweden has slashed taxes on large-scale solar power generation, in an effort to see boost the uptake of renewable energy sources in the country.

In a press statement issued earlier this week the government of Sweden announced that it would be slashing the rate of tax applied on the large-scale production of solar electricity.

In 2016 the government enacted a tax of SEK 0.292 per kWh produced by large-scale solar arrays generation arrays in excess of 255 kW.

The government is aiming to eventually drop the tax entirely, however, legislative hurdles prohibit them from simply striking the tax.

Instead, the rate of the tax will be dropped by 98 percent to SEK 0.005 per kWh, with an exemption for solar arrays rated at less than 255 kW.

Sweden currently sees approximately 0.1 percent of its total power generation coming from solar panels, however, nearly 39 percent of the country’s power comes from hydropower, and 36 percent comes from nuclear power.

The government hopes that by the end of 2040 the entirety of all electricity used in Sweden will be generated from renewable sources.