Potential Funding in Sweden

Many energy projects are already economic and profitable in Sweden. Due to historically low energy prices, there is a high energy efficiency potential in public facilities. Jokkmokk municipality could by an Energy Performance Project for a pool of its facilities save about 20% of energy costs with a pay back time well below 10 years.

Read more about how to evaluate profitability of energy projects (in Swedish): HERE

Beyond, there are a range of funding programmes which can be used by local authorities and communities, most important until 2020 is “Klimatklivet” “Klimatklivet” is an investment funding programme for local and regional measures that reduce carbon dioxide emissions. The investment is part of the state budget decided by the Swedish Parliament. Those who can apply are county councils, municipalities, limited companies, commercial companies, partnerships, individual business associates, organizations, housing associations, nonprofit organizations, economic associations, universities, colleges or foundations. With regard to companies (organizations engaged in economic activities), the EU's state aid rules govern what the Swedish Environmental Protection Agency can support and to what extent.

Measures that can be supported are concrete climate initiatives in, for example, transports, industries, housing, premises, urban construction and energy. It may concern:

  • Charging infrastructure for electric vehicles
  • biogas plants
  • Change of fossil oil to biofuel or hydrogen
  • Extension of smaller district heating networks

Photovoltaic Support Programme

Investment funding programme for photovoltaic is accessible for all types of actors, both companies and public organizations as well as private individuals. The support covers the installation of all types of networked solar cell systems and solar / solar heating systems. From 1 January 2018, the funding covers 30 percent of eligible installation costs. The maximum possible support per solar cell system is SEK 1.2 million and the eligible costs may amount to a maximum of SEK 37,000 plus VAT per installed kilowatt electric peak power.

PV energy producer can also sell surplus production to electricity network owners / electricity companies. Different electricity network owners have different conditions regarding the amount of compensation, usually between 10 and 50 öre per kWh. When selling electricity, one has to register for VAT and pay 25% of VAT. If the total taxable sales amount to no more than SEK 30,000 excluding VAT during a tax year, you are exempt from VAT.

Renewable Energy Production: Tax Reduction

As of January 1, 2015, it is possible to get a tax reduction for surplus electricity that is fed into the electricity grid. This also applies to wind and water. The tax reduction you as an electricity producer is able to receive is 60 öre per kilowatt hour (kWh) for all electricity that is fed into the electricity grid, however, up to a maximum of SEK 18,000 per year. The tax reduction is obtained through the income statement once a year. One can not get tax subsidies on the kWh that exceeds the outlet.

Electricity Certificates

For each produced megawatt hour (MWh) renewable electricity, producers can obtain an electricity certificate from the state. Electricity producers can then sell the electricity certificates in an open market where the price is determined between sellers and buyers. Electricity certificates thus provide extra revenue for renewable electricity production, in addition to the usual electricity sales. Buyers are actors with a so-called quota obligation, mainly electricity suppliers.

Energy sources entitled to electrical certificates in Sweden. The energy sources entitled to be awarded electrical certificates are wind power, some hydropower, some biofuels, solar energy, geothermal energy, wave energy and turf in combined heat and power plants. An electricity certificate is awarded to a manufacturer who has produced and measured a megawatt electricity in an approved facility.

New facilities that have been put into operation after the introduction of the electricity certificate system are entitled to electricity certificates for 15 years, but by the end of the year 2045.

Investment in Improving Energy Efficiency in Small and Medium-sized Enterprises

Since 2015, the Swedish Energy Agency has been conducting an initiative aimed at reducing the use of energy, increasing the share of renewable energy and reducing the climate impact at small and medium-sized enterprises. The goal that the Agency is working towards is for energy usage at small and medium-sized enterprises to decrease by 10 per cent of added value by 2023.

The Government has commissioned the Swedish Energy Agency to support small and medium-sized enterprises in their work of optimising their energy usage through support from the European Regional Development Fund. The initiative is being conducted within the framework of the National Regional Fund Programme, with the Swedish Agency for Economic and Regional Growth as the administrative authority, and will continue until 2020.

The Swedish Energy Agency is receiving a total of SEK 80 million a year for the initiative regarding improving energy efficiency in small and medium-sized enterprises during the period 2015–2020. SEK 40 million a year is coming from the Swedish Government and SEK 40 million via the European Regional Development Fund.