Tax regulation mechanisms II (Energy Tax Allowance)

Abbreviated form of legal source(s)

Act 1994:1776

Description of support scheme

Sweden levies a tax on electricity consumption. Therefore, electricity producers and suppliers are subject to this tax. The electricity is however exempt from this tax obligation if it is produced in a plant with capacity below or equal 100kW (Chapter 11 arts 1 and 5, Act 1994:1776). Electricity produced from wind, wave and solar power is also exempted if the plant’s capacity is higher (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

Commercial electricity producers and suppliers (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