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Regulatory informationRES-electricity

Tax regulation mechanisms III (Income Tax Allowance)

Abbreviated form of legal source(s)

● Act 1999:1229
● Position 8-112202

Description of support scheme

Income tax reduction is available for all micro-producers of RES electricity injecting their excess electricity into the grid based on the kWh of fed-in electricity. The maximum amount eligible for the reduction of 30 000 kWh of electricity consumed from the grid at the access point of the installation per natural or legal person or per connection point (Chapter 67 arts 30–31, Act 1999:1229).
For PV systems in residential buildings, the limits for peak installed power is 255kW (Position 8-112202). Micro-PV producers are also exempt from VAT, given that their installation does not exceed 244kW in peak power (Position 8-112202).

Amount

The income tax reduction amounts to 60 öre/kWh (€ct. 5.9/kWh) per access point in a calendar year. The maximum amount is 30,000kWh/ applicant /calendar year. (Chapter 67 arts 30–31, Act 1999:1229; Position 8-112202)

Addressees

Eligible are private and legal persons producing, injecting and consuming electricity from RES at the same connection point to the grid. The maximum of the connection point is 100 amps. The applicants must have notified the grid operator of the production and feeding in of the RES-produced electricity. (Chapter 67 art 27, Act 1999:1229).
For PV micro-installations, the maximum fuse size is 100A/residential building. The same person can apply for a tax reduction from their home and their holiday home if the total fuse size exceeds 100 but the individual fuse size does not exceed 100A (Position 8-112202).

Procedure

The request for tax reduction is made in the person’s/entity’s tax return form at the end of the calendar year (Chapter 67 art 27, Act 1999:1229).

Competent authority

The Swedish Tax Authority

Technologies

Wind energy onshore

Eligible

Wind energy offshore

Eligible

Solar energy

Eligible

Geothermal energy

Eligible

Biogas
Hydro-power

Hydroelectric, wave and tidal power are the eligible hydropower technologies (Chapter 67 arts 27–29, Act 1999:1229).

Biomass

Eligible