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Tax regulation mechanisms II (Energy Tax Allowance)

Abbreviated form of legal source(s)

Act 1994:1776

Description of support scheme

Electric power is exempted from the tax if it

 1. produced

 a) in an installation with a total installed peak power of less than 100 kilowatts,

 b) by anyone having an aggregate installed generating capacity of less than 100 kilowatts, and

 c) the electric power has not been transferred to a network subject to a concession,

 2. to a power lower than 50 kilowatts transferred without compensation by a producer or a network operator to a consumer who is not in a community of interest with the producer or network operator,

 3. produced and consumed on a ship or other means of transport,

 4. consumed for the production of electrical power, or

 5. produced in a reserve power unit and has not been transferred to a network subject to a concession.

For electricity produced from wind or wave power the peak power limit is equal to 250 kW. For solar power the peak power limit is 500 kW (see eligible technologies) (Chapter 11 art. 2, Act 1994:1776).

Amount

The energy tax is 34.7 öre/kWhk (€ct 3.42/kWh) (Chapter 11 Art 3, Act 1994:1776).
The government determines the recalculated, adjusted amount according to a formula for the following year at the end of November the previous year (Chapter 11 art 3, Act 1994:1776).

Addressees

Those who are obliged to pay energy tax (tax liable):

 1. produces taxable electric power (producer),

 2. is a network operator,

 3. approved as a voluntary taxpayer according to § 6, or

 4. owns an electricity network for which a concession has not been announced and which via this electricity network brings in electric power to Sweden (Chapter 11 art 5, Act 1994:1776).

Competent authority

The Swedish Tax Authority

Technologies

Wind energy onshore

Both types of wind power (onshore and offshore) are subject to an elevated capacity margin of 250kW/installed generator. This means that plants with capacities below or equal 250kW are eligible for tax exemption.

Wind energy offshore

Both types of wind power (onshore and offshore) are subject to an elevated capacity margin of 250kW/installed generator. This means that plants with capacities below or equal 250kW are eligible for tax exemption.

Solar energy

Solar power is subject to an elevated capacity margin of 500kW of peak power / installed generator. This means that plants with capacities below or equal 500kW are eligible for tax exemption.

Geothermal energy
Biogas
Hydro-power

Wave power is subject to an elevated capacity margin of 250kW/installed generator. This means that plants with capacities below or equal 250kW are eligible for tax exemption.
Other hydropower plants are not subject to the elevated capacity margin. This means that only plants with capacities below or equal 100kW are eligible for tax exemption.

Biomass