• In Sweden, the government has decided to stop the state support for rooftop solar PV installations
  • Only eligible projects that submit applications till July 7, 2020 can get a slice of the last batch of the support under existing scheme
  • It will be replaced by a tax deduction scheme expected to come into effect on January 1, 2021

The Swedish government has decided to end its investment support scheme for rooftop solar installations and that for energy storage as well. The schemes will be replaced with a tax deduction program from 2021. The news was announced by the Ministry of Infrastructure through an official statement.

Interested and eligible applicants have time till July 7, 2020 to seek support under the last batch of the existing support scheme.

Due to the COVID-19 pandemic spread, the ministry has extended the project completion deadline for such installations from December 31, 2020 to June 30, 2021.

The replacement scheme proposes a 15% tax reduction for solar systems and 50% for storage of self-generated electricity and charging points for electric vehicles. It covers only private individuals and is designed in a way that buyers can receive part of the tax relief at the time of purchase so that they are not dependent on any fund limits  available for a given year, as per the Ministry of Finance.

On May 18, 2020, the finance ministry said it has referred the tax deduction program to be a part of the Budget Bill 2021. Once included, it is proposed to come into force on January 1, 2021 and will be available for installations carried out after December 31, 2020.

The solar association of Sweden Svensk Solenergi pointed out that eligible individuals and companies can secure 20% of total installation cost in the last batch of state support under the existing scheme. However, it pointed out that after July 7, 2020, the next opportunity for state support will be only in 2021 when the tax deduction is scheduled to come into effect. The close for funding  applications might interrupt the recent strong growth path of Sweden’s rooftop solar segment, it fears.

At the end of 2019, Sweden’s cumulative operational installed solar power capacity totaled 698 MW as per the Swedish Energy Agency with 287 MW added last year. Most of this capacity came from installations below 20 kW, primarily on residential rooftops (see Sweden Installed Record 287 MW PV In 2019).