Property owners looking to install large-scale rooftop solar systems face financial penalties in Sweden, even when the electricity is consumed entirely on-site. According to a new report by Svensk Solenergi and Fastighetsägarna, systems with a capacity above 500 kW are subject to energy tax on their full output from the first kilowatt hour, despite the electricity never being fed into the grid.
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“This is a systemic flaw. No other climate measure is taxed in the same way. It is also a critical preparedness issue; we must promote distributed electricity production in order to be resilient in times of crisis and war,” says Anna Werner, CEO of Svensk Solenergi.
Other EU countries waive tax – Sweden lags behind
EU directives place no legal obligation on member states to impose energy tax on self-generated solar power. Germany, the Netherlands and Austria have already implemented full tax exemptions without facing objections from the European Commission.
Svensk Solenergi and Fastighetsägarna are calling on the government to immediately abolish the energy tax on solar power consumed within the same property, regardless of system size.
“Local electricity production is crucial in times of crisis”
“It is fundamentally wrong for the state to tax electricity that is produced and used within the property – electricity that does not burden the electricity grid. At the same time, large roof areas remain unused. The tax is slowing down investments that reduce emissions and strengthen energy security. This must come to an end,” says Rikard Silverfur, Head of Development and Sustainability at Fastighetsägarna. (hcn)