Extended exemption from energy tax for self-produced electricity

Source: International Energy Agency
Last updated: 23 March 2022

The government has submitted five bills to the Riksdag with tax proposals announced in the Budget Bill for 2021, one of which is to extend the exemption from tax liability for own production of electricity in, among other things, smaller solar plants through increased power limits.     

The new power limits are proposed to be 500 kilowatts for electric power produced from solar, 250 kilowatts for wind or waves and 100 kilowatts in other cases.  Producers of renewable electricity whose total capacity exceeds the power limits will be able to make a full deduction for the energy tax.  

The rules apply to electricity that is consumed in the same place as it is produced. The new rules are estimated to reduce the state's tax revenue by SEK 18 million in 2021 and thereafter by SEK 35 million per year.

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