Technical ReportPDF Available
National Survey Report
of PV Power Applications
in Sweden
2019
PVPS
Task 1 Strategic PV Analysis and Outreach
Task 1 National Survey Report of PV Power Applications in Sweden
What is IEA PVPS TCP?
The International Energy Agency (IEA), founded in 1974, is an autonomous body within the framework of the Organization for
Economic Cooperation and Development (OECD). The Technology Collaboration Programme (TCP) was created with a belief that
the future of energy security and sustainability starts with global collaboration. The programme is made up of 6 000 experts across
government, academia, and industry dedicated to advancing common research and the application of specific energy technologies.
The IEA Photovoltaic Power Systems Programme (IEA PVPS) is one of the TCP’s within the IEA and was established in 1993. The
mission of the programme is to “enhance the international collaborative efforts which facilitate the role of photovoltaic solar energy
as a cornerstone in the transition to sustainable energy systems.” In order to achieve this, the Programme’s participants have
undertaken a variety of joint research projects in PV power systems applications. The overall programme is headed by an Executive
Committee, comprised of one delegate from each country or organisation member, which designates distinct ‘Tasks,’ that may be
research projects or activity areas.
The IEA PVPS participating countries are Australia, Austria, Belgium, Canada, Chile, China, Denmark, Finland, France, Germany,
Israel, Italy, Japan, Korea, Malaysia, Mexico, Morocco, the Netherlands, Norway, Portugal, South Africa, Spain, Sweden, Switzerland,
Thailand, Turkey, and the United States of America. The European Commission, Solar Power Europe, the Smart Electric Power
Alliance (SEPA), the Solar Energy Industries Association and the Cop- per Alliance are also members.
Visit us at: www.iea-pvps.org
What is IEA PVPS Task 1?
The objective of Task 1 of the IEA Photovoltaic Power Systems Programme is to promote and facilitate the exchange and
dissemination of information on the technical, economic, environmental and social aspects of PV power systems. Task 1 activities
support the broader PVPS objectives: to contribute to cost reduction of PV power applications; to increase awareness of the potential
and value of PV power systems; to foster the removal of both technical and non-technical barriers and to enhance technology co-
operation. An important deliverable of Task 1 is the annual “Trends in photovoltaic applications” report. In parallel, National Survey
Reports are produced annually by each Task 1 participant. This document is the country National Survey Report for the year 2019.
Information from this document will be used as input to the annual Trends in photovoltaic applications report.
DISCLAIMER
The IEA PVPS TCP is organised under the auspices of the International Energy Agency (IEA) but is functionally and legally
autonomous. Views, findings and publications of the IEA PVPS TCP do not necessarily represent the views or policies of the IEA
Secretariat or its individual member countries.
COVER PICTURE
618 PV modules on 86 separate roof surfaces, Ramsvik Stugby & Camping, Bohuslän Sweden
Foto: Apptek Teknik Applikationer AB
Task 1 National Survey Report of PV Power Applications in Sweden
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TABLE OF CONTENTS
1 Installation Data ................................................................................................................................... 4
Applications for Photovoltaics ................................................................................................ 4
Annual installed PV capacity .................................................................................................. 4
Total installed PV capacity ..................................................................................................... 7
PV market segments .............................................................................................................. 10
The geographical distribution of PV in Sweden ...................................................................... 12
Key enablers of PV development ........................................................................................... 14
PV in the broader Swedish power system .............................................................................. 16
2 Competitiveness of pv electricity .......................................................................................................... 18
Module prices ......................................................................................................................... 18
System prices ........................................................................................................................ 19
Financial parameters and specific financing programs .......................................................... 26
Specific investments programs .............................................................................................. 26
Additional Country information ............................................................................................... 27
Electricity prices ..................................................................................................................... 28
Global solar radiation ............................................................................................................. 32
Production costs of PV electricity ........................................................................................... 33
3 Policy Framework ................................................................................................................................. 37
National targets for PV ........................................................................................................... 38
Direct support policies for PV installations ............................................................................. 38
Self-consumption measures ................................................................................................... 45
Collective self-consumption, community solar and similar measures..................................... 51
Tenders, auctions & similar schemes ..................................................................................... 51
Utility-scale measures including floating and agricultural PV ................................................. 51
Social Policies ........................................................................................................................ 51
Retrospective measures applied to PV .................................................................................. 51
Indirect policy issues .............................................................................................................. 51
Financing and cost of support measures ............................................................................... 54
4 Industry ................................................................................................................................................ 55
Production of feedstocks, ingots and wafers .......................................................................... 55
Production of photovoltaic cells and modules ........................................................................ 55
Task 1 National Survey Report of PV Power Applications in Sweden
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Manufacturers and suppliers of other components ................................................................ 57
R&D companies and companies with R&D divisions in Sweden ............................................ 60
Installers, retailers and wholesalers of PV systems ............................................................... 63
Consultancy firms................................................................................................................... 65
5 Highlights of R&D ................................................................................................................................. 66
PV research groups ............................................................................................................... 66
Public budgets for PV research .............................................................................................. 68
6 PV in the Economy ............................................................................................................................... 68
Labour places ........................................................................................................................ 68
Business value ....................................................................................................................... 70
7 Interest From Electricity Stakeholders .................................................................................................. 71
Structure of the electricity system .......................................................................................... 71
Interest from electricity utility businesses ............................................................................... 71
Interest from municipalities and local governments................................................................ 72
8 Highlights and Prospects ..................................................................................................................... 73
Highlights ............................................................................................................................... 73
Prospects ............................................................................................................................... 73
9 References ........................................................................................................................................... 74
Task 1 National Survey Report of PV Power Applications in Sweden
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1 INSTALLATION DATA
The photovoltaic (PV) power systems market is defined as the market of all nationally installed (terrestrial) PV
applications with a PV capacity of 40 W or more. A PV system consists of modules, inverters, batteries and all
installation and control components for modules, inverters and batteries. Other applications such as small mobile
devices are not considered in this report.
For the purposes of this report, PV installations are included in the 2019 statistics if the PV modules were installed
and connected to the grid between January 1st and December 31st of 2019, although commissioning may have
taken place at a later date.
Applications for Photovoltaics
The installation of grid connected PV systems in Sweden can be said to have taken off in 2006, when about 300
kW was installed that year. Before that only a few grid-connected systems were installed each year. Until 2006, the
Swedish PV market almost exclusively consisted of a small but stable off-grid market where the majority constituted
of systems for holiday cottages, marine applications and caravans. This domestic off-grid market has been quite
stable throughout the years. But since 2007 more grid-connected capacity than off-grid capacity has been installed
annually. The grid-connected market is almost exclusively made up by distributed roof-mounted systems installed
by individual homeowners, companies, municipalities, farmers, etc. Already from the start, the Swedish distributed
market has been driven by the self-consumption business model, as there has never existed a feed-in-tariff in
Sweden. Capital subsidies in combination with different types of schemes that add value for the excess electricity
has until now been crucial for this business model to work in Sweden. About 46 % of the installed grid-connected
PV power are residential systems and 46 % are installed on commercial facilities.
With regards to Building-Integrated PV (BIPV) in the decentralized market segment, several companies offer
different solutions and the feeling (without any backing of statistics) is that the number of BIPV projects in Sweden
is increasing.
So far only a couple of relatively small ground-mounted centralized PV parks, 5 % of the grid-connected market,
have been built. But the interest and activity in this market segment has increased a lot in 2019 and the number
and sizes of centralized PV parks are expected to increase in the coming years.
Annual installed PV capacity
The installation rate of PV continues to increase at a high speed in Sweden. A total of 288.93 MW was installed in
2019, as shown in Figure 1 and Table 2. This means that the annual Swedish PV market grew with 59 % compared
to the 182.19 MW that was installed in 2018.
In recent years, the market for grid-connected PV systems has grown rapidly in Sweden. This continued in 2019 as
another 286.99 MW of grid-connected systems were installed under the year, a 59 % increase compared to the
180.15 MW installed in 2018.
Of the grid-connected PV capacity installed in 2019, 11.45 MW is estimated to be centralized PV parks and 275.55
MW distributed PV systems for primary self-consumption. By that, the annual market of centralized PV in Sweden
grew with about 22 % and the distributed annual market by 61 % as compared with 2018, when approximately 9.40
MW of centralized and 170.75 MW of distributed PV was installed.
Sweden has a stable off-grid PV market. In 2017 and 2018, about 2.06 MW and 2.03 MW respectively of off-grid
applications were sold. In 2019 the off-grid market decreased slightly to 1.94 MW.
Task 1 National Survey Report of PV Power Applications in Sweden
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Table 1: Annual PV power installed during calendar year 2019.
Installed PV capacity in 2019 [MW]
AC or DC
PV capacity
Off-grid
1.94
DC
Decentralized
275.55
AC
Centralized
11.45
AC
Total
288.93
AC
Table 2: PV power installed during calendar year 2019.
Installed PV
capacity [MW]
Installed PV
capacity [MW]
AC or DC
Grid-
connected
BAPV
Residential
275.55
131.71
AC
Commercial
142.90
AC
Industrial
0.94
AC
BIPV
Residential
Unknown
(Included in BAPV)
Unknown
AC
Commercial
Unknown
AC
Industrial
Unknown
AC
Utility-
scale
Ground-mounted
11.45
6.65
AC
Floating
0
AC
Agricultural
4.80
AC
Off-grid
Residential
1.94
0.69
DC
Commercial
0.14
DC
Mobile applications
1.11
DC
Total
288.93
AC
Figure 1: Annual installed PV capacity in Sweden.
Task 1 National Survey Report of PV Power Applications in Sweden
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Table 3: Data collection process
Is the data reported in AC or DC?
The reported data is in AC
Is the collection process done by an official body or a
private company/Association?
Public body, the Swedish Energy Agency (grid
connected data)
Company, Becquerel Sweden (off-grid data)
Link to official statistics (if this exists)
http://www.energimyndigheten.se/statistik/den-
officiella-statistiken/statistikprodukter/natanslutna-
solcellsanlaggningar/
The numbers for total installed PV capacity by the end of 2019 listed in this report are based on two data sources.
All the grid-connected PV capacity is collected through surveys sent out by Statistics Sweden, SCB, (Statistiska
Centralbyrån) on behalf of the Swedish Energy Agency (Energimyndigheten) to all the Swedish grid operators [1].
As it is mandatory to notify the grid operator when a PV system is connected to the grid, the grid operators should
have all the grid-connected PV systems within their grid area registered, and they are obliged to share this
information with the Swedish Energy Agency. The accuracy of the grid connected capacity is therefore judged to
be high.
The official collection of grid-connected PV capacity by the surveys to the grid operators has only been carried
out for the years of 2016, and thereafter. The historic numbers for the installed grid-connected PV capacity (and
off-grid PV capacity) in Sweden until the end of 2015 are therefore exclusively based on the yearly collection of
the sales statistics by the Swedish representatives in IEA PVPS task 1. For 2016 and 2017 weighted average
number between the sales statistics and the statistics from the grid operators has been used due to uncertainties
about the quality of the grid operators’ statistics these years. For a more detailed description see the 2018 version
of National Survey Report of PV Application in Sweden [2].
Data for off-grid PV systems are by definition impossible to get from the grid operators. The information about
installed off-grid PV capacity is therefore based on cumulative sales statistics that have been collected directly
from company representatives throughout the years by the Swedish representatives in IEA PVPS task 1. Off-grid
systems older than 20 years are assumed to have been decommissioned by now and are therefore withdrawn
from the cumulative sales statistics to obtain the total off-grid capacity in Sweden. The companies that have
contributed off-grid data for 2019 are listed in section 4.6. Older Swedish National Survey Reports list the active
companies for the sales statistics for their respective year. The accuracy of the off-grid capacity is judged to be
much lower than for the grid connected capacity.
Task 1 National Survey Report of PV Power Applications in Sweden
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Total installed PV capacity
The total grid-connected capacity at the end of 2019 was 698.05 MW, according to the grid operators. Out of this
capacity about 30.52 MW is estimated to be centralized PV and 667.53 MW to be distributed. In addition, a total of
18.27 MW of off-grid PV applications have been sold in Sweden since 1993, wherein 15.82 MW is estimated to still
be in operation.
By adding the off-grid and the grid-connected PV capacities together, one can conclude a total of 713.87 MW of
electricity producing PV power by the end of 2019, illustrated in Figure 2 and summarized in Table 4. The total
installed PV capacity grew by 68 % in 2019, which is in line with the marked development over the five previous
years, where the total market grew by 59 % (2018), 46 % (2017), 47 % (2016), 63 % (2015) and 85 % (2014).
The strong overall growth in recent years started with the introduction of the direct capital subsidy system (see
section 3.2.1) in 2006, and has since then been fuelled by the declining system prices (see section 2.2), high
popularity among the public (see section 1.6.2), a growing interest from utilities (see 7.2) and an ongoing reformation
work from the Government to simplify the rules for micro-producers (see section 3.3).
In total there were 43 944 grid-connected PV systems in Sweden by the end of 2019. The number of off-grid systems
is unknown. A majority of the grid-connected PV systems, 37 656, are small systems below 20 kW. 6 277 are in
between 20 kW 1000 kW and only eleven systems are above 1 MW according to the official statistics (summarized
in Table 5). However, the official statistics count everything behind one single connection point to the grid as one
system. Several of the centralized PV parks built in Sweden have several connection points to the low voltage
distribution grid. These PV parks are divided into several systems in the statistics, and often in sizes below 1 MW.
So, the actual number of PV systems above 1 MW in Sweden is larger than eleven the way most people would see
it.
With regards to the number of installed PV systems in Sweden, statistics are available for grid-connected system
for the years 2016 to 2019. The number of systems at the end of each year, and the corresponding average system
size is presented in Table 6. As can be seen at the end of 2019, Sweden had 43 994 grid-connected PV system,
and the corresponding average system size was about 16 kW. That is a relatively small system size and it clearly
illustrates that the Swedish PV market mainly consist of small distributed PV systems.
Figure 2: Total installed PV capacity in Sweden.
Task 1 National Survey Report of PV Power Applications in Sweden
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Table 4: The cumulative installed PV power in 3 sub-markets.
Year
Off-grid [MW]
Grid-connected
distributed [MW]
Grid-connected
centralized [MW]
Total [MW]
1992
0.80
0.01
0.00
0.80
1993
1.03
0.02
0.00
1.04
1994
1.31
0.02
0.00
1.34
1995
1.59
0.03
0.00
1.62
1996
1.82
0.03
0.00
1.85
1997
2.03
0.09
0.00
2.13
1998
2.26
0.11
0.00
2.37
1999
2.46
0.12
0.00
2.58
2000
2.68
0.12
0.00
2.81
2001
2.88
0.15
0.00
3.03
2002
3.14
0.16
0.00
3.30
2003
3.39
0.19
0.00
3.58
2004
3.67
0.19
0.00
3.87
2005
3.98
0.25
0.00
4.24
2006
4.30
0.56
0.00
4.85
2007
4.57
1.68
0.00
6.24
2008
4.83
3.08
0.00
7.91
2009
4.97
3.54
0.06
8.57
2010
5.34
5.12
0.25
10.71
2011
5.78
8.47
0.35
14.60
2012
6.38
14.92
1.08
22.37
2013
7.31
32.14
1.81
41.26
2014
8.20
63.81
4.14
76.14
2015
9.16
109.19
5.83
124.17
2016
10.43
165.20
7.05
182.68
2017
12.27
245.50
9.67
267.44
2018
14.09
391.98
19.07
425.14
2019
15.82
667.53
30.52
713.87
Task 1 National Survey Report of PV Power Applications in Sweden
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Table 5: Other PV market information.
2019
Number of PV systems in
operation in Sweden
Grid connected PV
Under 20 kW
37 656
20 kW 1000 kW
6 277
Above 1000 kW
11
Total
43 944
Off-grid PV
Unknown
Decommissioned PV systems during the year [MW]
204 kW of off-grid system is estimated to have
been decommissioned
Repowered PV systems during the year [MW]
Unknown
Total capacity connected to the low voltage distribution
grid [MW]
Unknown
Total capacity connected to the medium voltage
distribution grid [MW]
Unknown
Total capacity connected to the high voltage transmission
grid [MW]
Unknown
Table 6: Number and average sizes of grid connected PV systems in Sweden at the end of each year.
2016
2017
2018
2019
Number of systems
10 006
15 251
25 486
43 994
Average size per system [kW]
14.0
15.1
16.1
15.9
Task 1 National Survey Report of PV Power Applications in Sweden
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PV market segments
The official statistics of the grid operators, collected by the Swedish Energy Agency, only include segmentation in
PV system sizes (power) in the ranges 020 kW, 201000 kW and >1000 kW. The total installations at the end of
2019, according to this source, are summarized in Table 7.
Table 7: Total installations of grid connected PV capacity and number of systems at the end of 2019,
according to the grid operators [1].
020 kW
201000 kW
>1000 kW
Total grid-connected PV capacity according
to the grid operators collected by the
Swedish Energy Agency [MW]
347.12
332.41
18.52
Total number of grid-connected PV systems
according to the grid operators collected by
the Swedish Energy Agency [#]
37 656
6 277
11
However, for market segmentation there is another data source. In the database of the Swedish direct capital
subsidy (see section 3.2.1), called Svanen, all PV systems that have been granted support from the start of the
subsidy programme in 2009 until now are recorded. By cross-referencing between this database and Sweden’s
national business directory, a business sector can be assigned to each system owner. By doing this, the database
can be divided into centralized, industry, commercial or residential systems. It is also possible to sort the PV systems
based on if they were installed on “ground (mark)”, “single-family houses/small buildings (småhus)”, “multi-family
houses (flerbostadshus)”, “facilities (lokaler)” or “other (annat)”. The Swedish standard classification names for the
different type of buildings are added within the parenthesis to make it easier for the Swedish readers as there in
some cases are no straightforward translations into English for these building types. The “other (annat)”
classification includes all installations that do not fit into the other building types. This could be decentralised ground
mounted systems, systems on churches or other cultural buildings and systems on schools just to mention a few.
A problem with the Svanen database is however that a lot of systems have been recorded in an incorrect way, for
example with the wrong power rating, granted subsidy or organization. When it is obvious that the information has
been recorded incorrectly, these systems have manually been removed for the analysis within this report.
The installed PV capacity in the Svanen database for 2019 is lower than the total installed as recorded by the
Swedish Energy Agency. However, by dividing the annual installed PV capacity in Svanen for each market segment
by the total installed PV capacity in Svanen, the different market segments share of the annual installations can be
estimated. The historic development of these shares is presented is presented in Figure 3.
As Figure 3 clearly illustrates, the biggest market segments in Sweden have been residential single-family houses
and commercial facilities. A slight variation over the years can be seen in Figure 3, but these two segments have
always been the biggest. The reason for that is that the self-consumption business model is easy to implement for
these types of buildings.
Task 1 National Survey Report of PV Power Applications in Sweden
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The low shares of the other market segments, such as centralized PV parks, industry and residential multi-family
houses can all be explained by the current policy structure in Sweden.
The reason for the underdeveloped Swedish market of centralized PV parks, as compared to in many other
countries, is that the current support schemes has not been enough do drive PV park development in Sweden until
now. The two support schemes that has been available has been the renewable electricity certificate system
(see section 3.2.3) and a maximum 1.2 million SEK per system from the direct capital subsidy programme (see
section 3.2.1). However, this is a market sector that is expected to grow in the coming years. At the time of writing
there are thirteen commenced PV parks in Sweden that are larger than 1 MW. Besides those mentioned, the authors
are aware of additional plans for several larger PV parks. It seems as though this sector is on the brink of managing
without any subsidies, with the help of innovative business models such as PPA-contracts and PV cooperative
models (see section 2.4).
The almost absent market segment of PV systems on industry properties can be explained by the current tax laws.
First, the manufacturing industry in Sweden has a reduced energy tax. Instead of paying the full energy tax of 0.347
SEK/kWh they only pay 0.005 SEK/kWh. Therefore, the value of self-produced and consumed electricity becomes
lower for manufacturing industries as compared with actors that pay the full energy tax. The other major policy
obstacle for this market segment is the 255-kW limit (see section 3.3.2), where an owner of a system larger than
255 kWp pay energy tax on the self-produced and consumed electricity as well. Many larger industries consider PV
systems of <255 kWp too small to consider, and therefore do not invest in PV, even if they have excellent roofs and
high electricity consumption.
The general obstacle for residential multi-family houses is the current tax laws which makes it complicated to self-
consume PV electricity in the apartments of a multi-family house. The most common situation is that the apartments
have their own meter and contract with the grid operators and the whole multi-family house has one separate meter
and contract for the electricity consumed in common areas of the house, e.g. elevators, laundry room, lighting. With
this arrangement it is only possible to use the produced PV electricity (from a PV system on the building) for the
electricity consumption of the common areas. If the owner of the multi-family house wants to sell the PV electricity
to the apartments, the owner becomes a retailer of the electricity and must follow the regulations which come along
with that role including the Swedish energy tax that is applied to the electricity (even if it has not left the building).
Hence, it is difficult to reach a high degree of self-consumption in multi-family houses arranged this way. The value
Figure 3: Various market segments share of the annual installed PV capacity in Sweden in 2019. Based on
statistics from the capital subsidy database Svanen. The written percentages in the graph represents the
total shares of Residential, Commercial, Industry and Centralized.
Task 1 National Survey Report of PV Power Applications in Sweden
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of the excess electricity exported to the grid drops if the fuse exceeds 100 amperes (see section 3.3.5), thus it
becomes hard to achieve a decent profitability for such installations. However, it is possible to self-consume the PV
electricity in the apartments without taxes if the whole multi-family building, including the apartments, share one
single meter and contract with the grid operator. This arrangement requires that the electricity consumption in the
apartments is included in the general rent of the apartments. And then it is up to the owner of the multi-family house
to decide if the residents in the apartments should pay a fixed price for the electricity regardless of their consumption,
or handle the metering of the electricity consumption themselves and vary the level of the monthly rent for the
residents depending on their electricity consumption. The latter solution becomes more and more common in
Sweden, but the general complexity to move to this arrangement is one reason for the low installation numbers for
multi-family houses. Several proactive housing and property companies have however experienced added values
after investments in PV, such as sustainability, fair cost, and induced innovativeness [3]. These experiences are
likely to spread over time to other actors and motivate them to overcome the perceived legislative barriers.
The geographical distribution of PV in Sweden
The data from the grid operators’ statistics about the installed PV power in Sweden has a geographical resolution
down to municipality-level. This data has been used to illustrate the geographical distribution of PV in Sweden in
Figure 4 and Figure 5 for most of the municipalities in Sweden. However, some municipalities are marked as blank
by the public Swedish Energy Agency due to confidentiality reasons. For these municipalities, data from the green
electricity certificate system (see section 3.2.3) has been used to complement the grid operators’ data in creating
Figure 4 and Figure 5.
In 2016 these municipalities were Ale, Arjeplog, Arvidsjaur, Bjurholm, Dorotea, Fagersta, Gällivare, Habo,
Haparanda, Hedemora, Hofors, Jokkmokk, Kalix, Kiruna, Ljusnarsberg, Ludvika, Lycksele, Lysekil, Malå, Munkedal,
Munkfors, Nordmaling, Pajala, Sala, Sorsele, Storuman, Sundbyberg, Sävsjö, Tanum, Tidaholm, Täby, Umeå,
Vilhelmina, Vännäs, Åsele, Älvsbyn, Örebro and Överkalix.
In 2019 these municipalities were Ale, Arjeplog, Arvidsjaur, Borgholm, Haparanda, Hultsfred, Norberg, Skellefteå,
Sorsele, Storuman, Surahammar, Åmål, Överkalix.
Figure 4 and Figure 5 clearly show that the expansion of PV takes place at different speeds in Sweden's
municipalities. When it comes to most installed PV capacity, Gothenburg, followed by Uppsala and Stockholm were
in the top at the end of 2019 with 22.6, 18.9 and 17.0 MW, respectively. Gothenburg, who overtook the lead from
Linköping in 2018, was much helped by the 5 MW PV park that was finalised on Hisingen in December 2018. The
local utility company is building another 5 MW PV park in 2020.
When the installed PV capacity is divided by capita, as in Figure 5, Sjöbo municipality overtook the last year’s leader
Heby in 2019. The main reason for that is that Sweden’s so far biggest PV park, “Sparbanken Solcellspark” at 5.8
MWp was commissioned in Sjöbo last summer. Sjöbo only has about 19 200 inhabitants, so the PV park had a huge
effect. The top three municipalities then became Sjöbo, Heby and Simrishamn with 405.2, 242.8 and 230.5
W/capita, respectively. It is no coincidence that Heby and Simrishamn also are in the forefront. In Heby, Swedens
first PV cooperative was started already in 2009 (see section 2.4) and in 2018 Swedens largest roof-mounted PV
system was installed on a logistics center. In Simrishamn the utility E.On is running a smart grid project in the village
Simiris where they will run the whole village on solely locally produced wind and PV electricity in an island mode
every fifth week.
The Swedish electricity market is from the first of November 2011 divided into four bidding areas by decision of the
Swedish National Grid (Svenska Kraftnät), marked as SE1, SE2, SE3 and SE4 in Figure 4 and Figure 5. The reason
is that northern Sweden has an excess of electricity production, since that is where a lot of the wind power and a
majority of the hydropower is situated, while the demand is larger than the production in southern Sweden. This
has resulted in transmission bottlenecks, and the borders between the bidding areas have been drawn where there
are congestions in the national grid. The idea of the four bidding areas is to make it clear where the national grid
needs to be expanded and where an increased electricity production is required to better meet the consumption.
Task 1 National Survey Report of PV Power Applications in Sweden
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From this perspective, it is positive that a majority of the PV capacity is being installed in southern Sweden and
mainly in the densely populated municipalities, as Figure 4 shows.
The value of the PV electricity is also higher in SE4 and SE3, as the average value factor between 2014 and 2019
(see section 2.6 for further explanation and discussion) of PV in these bidding areas was 1.028 and 1.025
respectively, as compared to 1.024 in both SE2 and SE1 respectively [4].
Figure 4: Total power of the PV systems in each of Sweden's municipalities. For some municipalities data
from the green electricity system has been used instead of grid operators’ data due to confidentiality
reasons.
Figure 5: Total power of the PV systems per capita in each of Sweden's municipalities. For some
municipalities data from the green electricity system has been used instead of grid operators’ data due to
confidentiality reasons.
Task 1 National Survey Report of PV Power Applications in Sweden
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Key enablers of PV development
1.6.1 Other technologies
For four years the surveys that went out to the installation companies included questions about grid connected
battery capacity that had been installed. According to the installations companies a total battery capacity of 6 362
kWh was installed in 2019,, a slight increase compared to 2018 Table 8: Annual installed grid connected stationary
battery capacity installed by PV installation companies. illustrates. The general global trend of decreasing battery
prices [5], signals that a growing battery market in Sweden is expected. In 2018 a clear shift can be seen Table 8:
Annual installed grid connected stationary battery capacity installed by PV installation companies., as compared
to previous years, where the battery market for private households became larger than the market for commercial
systems. This development can be explained by the introduction of the capital subsidy programme for storage (see
section 3.9.3), which now has an effect on the storage market.
The reader should be aware that this battery capacity is not the total annual installed grid connected battery capacity
in Sweden. It is only the battery capacity that PV installation companies have installed in connection to distributed
PV systems.
Table 8: Annual installed grid connected stationary battery capacity installed by PV installation companies.
Year
Private system
Commercial system
Total
2016
177 kWh
1 365 kWh
1 542 kWh
2017
1 143 kWh
1 288 kWh
2 431 kWh
2018
2 414 kWh
1 520 kWh
3 934 kWh
2019
3 406 kWh
2 956 kWh
6 362 kWh
The battery capacity of the electrical cars in Sweden was 2 395 MWh in the end of 2019 [6]. If one adds the total
battery capacity of stationary grid connected batteries connected to PV systems installed between 2016 and 2019
the total battery capacity at the end of 2019 became 2 409 MWh.
Table 9: Information on key enablers. Values are at the end of 2019.
Description
Annual Volume
Total Volume
Source
Distributed storage
systems [kWh]
Grid-connected private
and commercial
battery systems
4 204 kWh
> 12 066 kWh1
This report
Heat Pumps [#]
Single-family houses
52 723
~ 1 400 000
[7]
Electric cars [#]
Battery electric
vehicles
14 957
34 228
[6]
Plug-in hybrid electric
vehicles
17 054
66 336
1Data collection started in 2016. So, the total number is for sure higher than the cumulative value of 20162019 data.
Task 1 National Survey Report of PV Power Applications in Sweden
15
1.6.2 The public opinion about PV
The general opinion about PV in Sweden is very positive among the public. In an annual survey [8], sent out by the
SOM-institute, randomly selected respondents have answered the question “How much should Sweden invest in
the following energy sources during the next 5-10 years?”. The result is presented in Figure 6, indicating a strong
majority of 82 % of the respondents want more investments in PV in Sweden, which makes the PV technology by
far the most popular electricity production technology in that aspect.
When it comes to the willingness of homeowners to install PV on their house, the results from two different surveys
conducted with national representative samples of Swedes, are presented in Figure 7. The survey presented in
Figure 7a is from 2016 [9] and the one presented in Figure 7b from 2018 [10]. The results from the two surveys are
similar and show that about 60 % of the homeowners in Sweden are interested in having a PV system on their roof.
Finally, there is also a great interest for larger PV systems, and scientific analysis has shown that the installation of
PV systems creates a number of added values for commercial and multi-family building owners [3].
Figure 6: The public opinion in Sweden about different electricity production technologies.
Figure 7: The result of two different surveys conducted with a national representative sample of Swedes.
In (A) the question was “If you had the opportunity, would you then like to produce your own electricity?”
In (B) the question was “As a homeowner, have you installed PV or are you planning to do so?”.
Task 1 National Survey Report of PV Power Applications in Sweden
16
PV in the broader Swedish power system
The complete statistics of the Swedish electricity production of 2019 is not yet available. In Figure 9 the Swedish
electricity production in 2018 is presented. The electricity production data used in Figure 9 and Figure 8, along with
Table 10, were retrieved from Svenska Kraftnät [11] but with complementary data from SCB [12] with regards to
the fuels used in the Swedish CHP power plants. The exception is the produced PV power. Since a large share of
the total PV power production is self-consumed by prosumers it is not registered in the statistics from Svenska
Kraftnät as they only measure electricity fed into the grid. The PV production used in the figures and table below
were therefore instead generated through simulations using a model that have a proven high correlation of 0.95
0.99 to reported historical production data [13].
The simulation result was generated in proportion to the geographical location of the population and the available
solar radiation, this was done in order to ensure that the solar production was distributed realistically. For each year
the production was calculated from the average installed power at the beginning and the end of the year and was
weighted against values on the installed capacity.
Figure 9: Total electricity production in Sweden in 2018.
Figure 8: Annual electricity production in Sweden from 1990 to 2018.
Task 1 National Survey Report of PV Power Applications in Sweden
17
As can be seen in Figure 8, the Swedish electricity has historically been produced by technologies that have a low
CO2-footprint. This along with the low electricity prices (see section 2.6) counts as the two main reasons why the
Swedish PV deployment started late compared to other European markets and still is rather small.
Table 10: PV power and the broader national energy market.
2018 numbers
2019 numbers
Total power generation capacities [MW]
39 782
40 822
Total renewable power generation capacities
(including hydropower) [GW]
27 864
29 714
Total electricity demand [TWh]
135.2
132.1
Total electricity production [TWh]
152.7
158.6
Change in generation capacity [MW]
+ 928
+ 1 040
Change in renewable power generation capacity
(including hydropower) [MW]
+ 1 028
+ 1 850
Estimated total PV electricity production (including
self-consumed PV electricity) in [GWh]
347
543
Total PV electricity production as a % of total
electricity consumption
0.26
0.41
Task 1 National Survey Report of PV Power Applications in Sweden
18
2 COMPETITIVENESS OF PV ELECTRICITY
Module prices
Module prices in Sweden are heavily dependent on the international module market. Sweden saw a very rapid
decline in price for PV modules between 2008 and 2013 due to a growing domestic market, which allowed retailers
to import larger quantities. But also due to the overall price decline of modules on the international market. Between
2013 and 2016, the price decline in Sweden was more moderate.
One of the reasons for the stabilization of module prices in this time period was the import duties on Chinese PV
modules and cells that were introduced in 2013 by the European Commission [14]. In these measures, a minimum
import price (MIP) was introduced, which means that no silicon solar cells or modules could be imported to the
European Union at a price lower than 0.56 €/Wp, which corresponded to about 5.2 SEK/Wp.
In September 2018 the European Commission terminated the duties on Chinese modules. After the termination of
the duties many Swedish retailers lowered their module prices towards the Swedish installation companies with 20-
30 percent. That resulted with the price of a typical module to the end consumer going down by 15 % in 2018, which
continued in 2019 with an additional average price drop of 9 % (see Table 11), according to sales statistics.
Table 11: Typical module prices for a number of years. The prices are reported by Swedish installers and
retailers. The prices are the prices to the end costumer, not the import price for the installers and retailers.
Year
Lowest price of a standard
module crystalline silicon
[SEK/Wp]
Highest price of a standard
module crystalline silicon
[SEK/Wp]
Typical price of a standard
module crystalline silicon
[SEK/Wp]
2004
-
-
70
2005
-
-
70
2006
-
-
65
2007
-
-
63
2008
-
-
61
2009
-
-
50
2010
20
68
27
2011
12
50
19
2012
9.5
40
14
2013
6.0
16
8.9
2014
6.0
12
8.2
2015
5.1
10
7.6
2016
4.5
9.3
7.1
2017
4.1
6.6
5.3
2018
3.2
6.6
4.5
2019
2.2
5.4
4.1
Task 1 National Survey Report of PV Power Applications in Sweden
19
System prices
Sweden has experienced a large decrease in PV system prices since 2010, especially before 2013, as Figure 10
shows. The major reason for the decline in system prices in Sweden is that the prices of modules and the balance
of system (BoS) equipment has dropped in the international market. Another reason is that the Swedish market is
growing, providing the installation firms a steadier flow of orders and an opportunity to streamline the installation
process, thus reducing both labour and cost margins. A clear trend of decreasing yearly full-time labour positions
per installed MW is illustrated in Table 33 further corroborate this hypothesis. Competition in the market has also
increased. In 2010 the author of this report was aware of 37 active companies that sold and/or installed modules or
PV systems in Sweden. In the end of 2019, the corresponding figure had gone up to 314.
2.2.1 Estimated PV system prices by the sales statistics
When it comes to PV system prices, there are two different data sources. One is the sales survey that yearly goes
out to the Swedish installers and retailers as part of the collection of data for this and previous Swedish National
Survey Reports. These surveys have been conducted the same way since 2010, and they collect statistics about
prices that the installer and retailer companies regard as typical for some standard PV systems for their company.
The reported prices have for the years 20102017 been weighted with regards to the number of kWp each company
installed in that market segment. For the 2018 and 2019 numbers, the reported prices have not been weighted (as
the collection of installation data from the installation companies after 2017) and the reported prices are a regular
average. The price information from the sales surveys are presented in Figure 10 and Table 11.
.
Figure 10: Historic development of the weighted average typical prices for turnkey photovoltaic systems
(excluding VAT), reported by Swedish installation companies.
Task 1 National Survey Report of PV Power Applications in Sweden
20
Table 12: National trends in system prices for different applications.
Year
Residential BAPV
Grid-connected, roof-
mounted, distributed
PV system ~5 kW
[SEK/Wp]
Small commercial
BAPV
Grid-connected, roof-
mounted, distributed
PV systems ~15 kW
[SEK/Wp]
Large commercial
BAPV
Grid-connected, roof-
mounted, distributed
PV systems ~100
[SEK/Wp]
Small centralized PV
Grid-connected,
ground-mounted,
centralized PV systems
>0.5 MW
[SEK/Wp]
2007
2008
96.00
67.00
2009
76.00
47.00
2010
63.33
45.89
40.79
2011
32.07
28.77
24.44
2012
21.43
20.29
16.13
2013
16.68
15.09
13.62
12.73
2014
15.28
13.81
12.63
11.77
2015
15.13
13.20
11.82
10.69
2016
15.07
12.48
11.56
9.03
2017
14.81
12.22
10.70
9.30
2018
14.76
12.09
10.31
8.18
2019
14.29
11.74
10.12
7.50
2.2.2 PV system prices recorded in the direct capital subsidy programme
The other source for system price statistics is the database of the Swedish direct capital subsidy, called Svanen.
As described more in detail in section 1.4 it is possible to sort the PV systems by market segment, meaning if they
have been installed on “ground (mark)”, “single-family houses/small buildings (småhus)”, “multi-family houses
(flerbostadshus)”, “facilities (lokaler)” or “other (annat)”. The Swedish standard classification names for the different
type of buildings are added within the parenthesis to make it easier for the Swedish readers as there is some cases
are no straightforward translations into English for these building types. So, most PV systems in the database can
be divided into centralized, industry, commercial and residential systems, and as the system sizes (in kWp), prices
and commission dates are also recorded, it is possible to extract price information within the different market and
size segments, as well as follow the price development over the years.
When it comes to the prices of turn-key grid connected roof-mounted PV systems there is of course a wide range,
even for systems with similar size and type of owner. The range depends on many factors, such as type of building,
type of roof, type of module and BoS, etcetera. Furthermore, it is not possible to derive if the PV systems are
building applied (BAPV) or building integrated (BIPV), or if the owner has carried out some of the installation work
by him/herself. These factors result in several recorded PV system prices (especially in the segment of small
residential single-family systems) that are unusually high >30 SEK/Wp or low <10 SEK/Wp.
Furthermore, there is also the economies of scale, where larger systems are comparatively cheaper to install due
to the fact that some costs, such as for example designing of the system, erection of scaffolding, commissioning
etc, depends little on the number of modules that are being installed.
Task 1 National Survey Report of PV Power Applications in Sweden
21
For this report several size (power) ranges for residential and commercial systems have been selected and an
average has been derived within these size ranges for PV systems. The reason for choosing these size intervals is
because the number of systems should suffice to derive a reasonable average price and that the economies of
scale become less profound the larger the system becomes. For the residential sector the size ranges are 510
kWp and 1020 kWp for single-family houses, and 2050 kWp and 50100 kWp for multi-family houses. The average
prices for residential systems are presented in Figure 11 and Table 13. For the commercial sector the size ranges
are 1020 kWp, 2050 kWp, 50100 kWp and 100255 kWp, presented in Figure 12 and Table 14. The reason for
choosing 255 kWp as the upper boundary for the largest commercial systems is due to the current tax legislation
(see section 3.3.2). Table 13 and Table 14 also list how many systems that the presented average prices have
been derived from, in order for the reader to get a sense of relevance of the average price presented.
The reason for only presenting prices from 2013 and onwards, and not to include 20092012 even if they exist in
the database, is that the number of systems installed those years is so small and the spread of prices between
them so high that deriving an average price of these systems would be precarious and misleading.
Figure 11: Average prices for turnkey grid-connected residential PV systems (excluding VAT) from the
database of the direct capital subsidy programme.
Figure 12: Average prices for turnkey grid-connected commercial PV systems (excluding VAT) from the
database of the direct capital subsidy programme.
Task 1 National Survey Report of PV Power Applications in Sweden
22
Table 13: Average prices for turnkey grid-connected residential PV systems (excluding VAT) from the
database of the direct capital subsidy programme, along with the number of PV systems of that specific
type and power range that the average price has been derived from.
Year
Single-family houses,
510 kWp
Single-family houses,
1020 kWp
Multi-family houses,
2050 kWp
Multi-family houses,
50100 kWp
Average
price
[SEK/Wp]
#
systems
Average
price
[SEK/Wp]
#
systems
Average
price
[SEK/Wp]
#
systems
Average
price
[SEK/Wp]
#
systems
2013
15.49
343
15.13
71
19.26
15
20.62
3
2014
15.00
476
13.35
207
17.62
39
16.88
11
2015
14.56
522
12.42
260
15.31
32
14.57
11
2016
14.69
988
13.25
426
15.33
62
13.38
19
2017
14.19
1 422
12.57
875
16.53
78
13.54
21
2018
14.64
3 627
12.66
2 798
14.62
111
13.21
39
2019
14.26
3 728
12.12
3 660
14.47
34
12.56
10
Table 14: Average prices for turnkey grid-connected commercial PV systems (excluding VAT) from the
database of the direct capital subsidy programme, along with the number of PV systems of that specific
type and power range that the average price has been derived from.
Year
Commercial facilities,
1020 kWp
Commercial facilities,
2050 kWp
Commercial facilities,
50100 kWp
Commercial facilities,
100255 kWp
Average
price
[SEK/Wp]
#
systems
Average
price
[SEK/Wp]
#
systems
Average
price
[SEK/Wp]
#
systems
Average
price
[SEK/Wp]
#
systems
2013
20.07
29
19.33
53
15.24
12
15.75
5
2014
14.22
78
15.05
89
16.74
24
16.11
10
2015
14.04
135
13.62
143
13.64
43
14.56
18
2016
13.76
203
13.40
243
13.22
67
13.51
34
2017
13.83
320
13.19
343
12.31
107
12.09
58
2018
13.46
481
12.80
560
12.56
177
11.85
98
2019
13.52
564
12.90
728
12.53
297
11.58
204
Task 1 National Survey Report of PV Power Applications in Sweden
23
2.2.3 PV system price discussion
The fast decrease in PV system prices in Sweden the last few years has slowed down, but a declining price trend
can still be seen. For small PV systems on residential single-family houses of approximately 5 to 10 kWp, both
Task 1 National Survey Report of PV Power Applications in Sweden
24
Table 12 (that is based on the installations companies estimates) and Table 13 (that is based on prices statistics
derived from the Swedish direct capital subsidy programme) show that the price decreased in 2019, with around
34 % to reach an average of 14.2 SEK/Wp. The price of somewhat larger PV systems on residential single-family
houses of about 1020 kWp also declined with about 4 %, as the average prices in this market segment went down
from 12.7 to 12.1 SEK/Wp (see Table 13Table 13). For residential PV systems on multi-family houses the prices
went down with 1 % and 5 % within the size ranges of 2050 kWp and 50100 kWp respectively in 2019.
For roof-mounted PV systems on commercial buildings the price decline seems to have followed the same pace as
the prices went down with 2 % for ~100 kWp systems and 3 % for ~15 kWp systems according to installation
companies (see Table 12). However, Table 14 show that prices for commercial facilities were about the same in
2019 as in 2018.
It is interesting to note that for small residential single-family houses the installation companies estimate typical
system prices at the same level as what have actually been recorded in the direct capital subsidy programme,
namely on average 14.2 SEK/Wp, while for large commercial systems of about 100 kWp the installation companies
estimate lower typical system prices (10.1 SEK/Wp) as compared to the average of the recorded systems in the
direct capital subsidy programme (11.6 SEK/Wp). Looking in the database of the direct capital subsidy programme
a few outlier systems with system prices >30 SEK//Wp are noted in this category, which pull up the average prices.
Consequently, it seems like the typical price for a large commercial PV system of about ~100 kWp was closer to 10
SEK/Wp in 2019.
The largest price decline in 2019 occurred for centralized utility scale PV parks, where the typical price went down
with 8 % from 8.2 SEK/Wp to 7.5 SEK/Wp (see Table 12). An explanation is that five >1 MWp PV parks were
commissioned in Sweden in 2019.
The general slowdown of the price reduction of PV system is expected as it is impossible to continue with such a
fast price reduction as was seen a couple of years ago when the Swedish market was catching up the international
market prices. The stagnation of the prices for the residential and small commercial sector might be explained by
the very high demand for PV in Sweden. The fact that the subsidy levels in the Swedish direct capital subsidy
system haven’t been lowered since 2014 until it was changed in May 2019, may be another reason (see section
3.2.1). This means that the installers could charge the same prices, as the customers have the same profitability,
even if module and other hardware costs has continued to go down.
Table 15 summarizes the PV system prices in 2019. The price ranges presented are appraisals made by the authors
and are based on data from both the installer and retailers’ surveys and the Svanen-database of the direct capital
subsidy.
Task 1 National Survey Report of PV Power Applications in Sweden
25
Table 15: Turnkey PV system prices of different typical PV systems in 2019.
Category/Size
Typical applications and brief details
Current prices
[SEK/Wp]
Off-grid
2 kW
A stand-alone PV system is a system that is installed to
generate electricity to a device or a household that is not
connected to the public grid. The price is for a small off-grid
system on a cottage for seasonal use (summer) that is not
connected to main grid.
2530
Residential BAPV
5-10 kW
Grid-connected, roof-mounted, distributed PV systems
installed to produce electricity to grid-connected households.
Typically roof-mounted systems on villas and single-family
homes.
1117
Small commercial BAPV
10-100 kW
Grid-connected, roof-mounted, distributed PV systems
installed to produce electricity to grid-connected commercial
buildings, such as public buildings, multi-family houses,
agriculture barns, grocery stores etc.
816
Large commercial BAPV
100-250 kW
Grid-connected, roof-mounted, distributed PV systems
installed to produce electricity to grid-connected large
commercial buildings, such as public buildings, multi-family
houses, agriculture barns, grocery stores etc.
714
Industrial BAPV
>250 kW
Grid-connected, roof-mounted, distributed PV systems
installed to produce electricity to grid-connected industrial
buildings, warehouses, etc.
713
Small centralized PV
1-20 MW
Grid-connected, ground-mounted, centralized PV systems that
work as central power stations. The electricity generated in this
type of facility is not tied to a specific customer and the
purpose is to produce electricity for sale.
59
Large centralized PV
>20 MW
Grid-connected, ground-mounted, centralized PV systems that
work as central power station. The electricity generated in this
type of facility is not tied to a specific customer and the
purpose is to produce electricity for sale.
not applicable
Task 1 National Survey Report of PV Power Applications in Sweden
26
Financial parameters and specific financing programs
The interest rate (reporäntan) of the central bank of Sweden (Riksbanken) started at -0.5 % in 2019, but was
increased to -0.25 % on the 9th of January and was then kept at that level for the entire year [15]. Changes in interest
rate by the central bank have a direct impact on the market rates, which therefore have been quite low in 2019. The
cost of capital for a PV system has consequently been low.
In Table 16 the average mortgage rate in 2019 has been used for residential installations. For commercial
installations in Sweden a realistic loan rate has been reported to be the STIBOR rate plus 450 dps. A study to derive
the levelized cost of electricity (LCOE) of Swedish centralized PV parks projects under 2019 and 2020 are taking
place right now, and preliminary average weighted average cost of capital (WACC) from this study is used for
industrial and ground-mounted installations in Table 16.
Table 16: PV financing information in 2019.
Different market segments
Loan rate [%]
Average rate of loans residential installations [16]
1.6 %
Average rate of loans commercial installations [17]
4.3 %
Average cost of capital industrial and ground-mounted installations
4.0 %
To the knowledge of the authors, the first loan specifically directed to PV installations in Sweden was launched in
2019. It is Sparbanken Syd that now offer private persons to finance their investment in PV systems on their house
by a specific PV loan [18].
Specific investments programs
Already in 2009, the first PV cooperative, Solel i Sala & Heby ekonomisk förening, started in Sweden. This PV
cooperative has a FiT agreement with the local utility company Sala-Heby Energi, that buys the electricity from the
cooperatives PV systems. Since the start in 2009 the cooperative has now built six systems with a total capacity of
599 kWp. Other examples of PV cooperatives that has built co-owned PV systems are Solel i Bergslagen ekonomisk
förening, with two systems totalling 112 kWp, and Zolcell 1:1 ekonomisk förening, with 2 systems totalling 27 kWp.
Table 17: Summary of existing investment schemes.
Investment Schemes
Introduced in Sweden
Third party ownership (no investment)
Yes
Renting
Yes
Leasing
Yes
Financing through utilities
Yes
Investment in PV plants against free electricity
Yes
Crowd funding (investment in PV plants)
Yes
Community solar
Yes
International organization financing
No
Task 1 National Survey Report of PV Power Applications in Sweden
27
PV cooperative models have in later years been adapted by utility companies that have built large PV parks or
systems. Any private person or company can buy a share in such a park and the shares represent a certain yearly
production, which the utility company deduct from the share owner’s electricity bill. One examples of this is the 1
MWp park with solar tracking outside of Västerås, which the utility company Mälarenergi and the installation
company Kraftpojkarna manage together. Another example is Kalmar Energi that installed a crowdfunded 600 kWp
system on the roof of a local farm called Nöbble Gård. Following the positive response of Nöbble Gård Kalmar
Energi is now building big crowd funded PV park close to the Kalmar Airport. This park will be built in four stages of
750 kWp each. The first one was finalized in the end of September 2017, the second in June 2018 and the third in
May 2019. The first stage, 0.6 MW, of their crowd funded PV park was finalized in April 2019, the second stage of
another 0.6 MW was in June 2019 and at the time of writing 60 % of a third stage has been financed.
In 2014 there was no company offering PV leasing contracts. However, in 2015, the company Eneo Solutions AB
started to offer solar leasing contracts to owners of commercial and public buildings. In 2016 two utility companies,
Umeå Energi and ETC El started to offer solar leasing contracts to private homeowners.
Additional Country information
Sweden is a country in northern Europe. With a land area of 407 284 km² [19], Sweden is the fifth largest country
in Europe. In January 2017 Sweden passed ten million inhabitants for the first time in history [20]. The population
density of Sweden is therefore low with about 25 inhabitants per km², but with a much higher density in the southern
part of the country. About 85 % of the population lives in urban areas.
Table 18: Country information.
Retail Electricity Prices for a household (range)
1.22.2 SEK/kWh (including grid charges and taxes)
Retail Electricity Prices for a commercial company
(range)
1.21.8 SEK/ kWh (including grid charges and taxes)
Retail Electricity Prices for an industrial company
(range)
0.61.0 SEK/kWh (including grid charges and taxes)
Population at the end of 2019 [20]
10 327 589
Country size (km2) [19]
407 284
Average PV yield in kWh/kWp [21][22]
900 kWh/kWp (7501100 kWh/kWp)
Name and market share of major electric utilities
Electricity
production
(2018)
[23]
Share of
grid
Subscribers
(2017)
[24]
Number of
retail
customers
(2018)
[25]
Vattenfall
44 %
16 %
20 %
Uniper
15 %
-
-
Fortum
14 %
-
21 %
Statkraft
4 %
-
-
Skellefteå
Kraft
2 %
1 %
4 %
E.ON
-
19 %
15 %
Ellevio
-
17 %
-
Task 1 National Survey Report of PV Power Applications in Sweden
28
Electricity prices
In Sweden, the physical electricity trading takes place on the Nordic electricity retailing market, Nord Pool Spot
market. Historically, electricity prices in Sweden have primarily been dependent on the rainfall and snow melting,
the availability of the nuclear reactors and the outside temperature. In recent years, a lot of wind power has been
built and more transmission connections to surrounding countries have come online, which affect the spot prices
on windy days.
The Swedish electricity market is from the first of November 2011 divided into four bidding areas by decision of the
Swedish National Grid (Svenska Kraftnät). The reason is that northern Sweden has a surplus of electricity
production compared to the demand, while there is a higher demand than production in southern Sweden. That has
resulted in transmission capacity problems and the borders between the bidding areas have been drawn where
there are congestions in the national grid. The idea of the four bidding areas is to make it clear where in Sweden
the national grid needs to be expanded and where in the country increased electricity production is required to
better meet consumption, and thus reduce the need to transport electricity long distances. The geographical borders
of the areas are marked in Figure 4 and Figure 5.
Figure 13: Daily average day-ahead spot prices in area 1 (Luleå) and area 4 (Malmö) in 2019.
Figure 14: Weekly average day-ahead spot prices in area 1 (Luleå) and area 4 (Malmö) in 20142019.
Task 1 National Survey Report of PV Power Applications in Sweden
29
In 2019 the spot prices were quite stable over the year, as Figure 13 illustrates, and the yearly average ended up
at 0.401 in SE1, 0.401 in SE2, 0.405 in SE3 and 0.421 in SE4. The very small difference between the areas does
not influence the distribution of PV systems over the country to the same extent as solar radiation (see section 2.7)
and the population distribution does (see section 1.4). Looking back over the last six years, the spot prices have
varied quite substantially in Sweden, as Figure 14 and Table 19 illustrates, which makes it harder to predict the
business case of centralized PV parks. With more in-depth analysis of the production profile of PV and the spot
price variation, the market value of the PV electricity and the value factor can be derived [26]. The market value
points to whether the production profile of power generation from a specific energy resource matches the spot price
variation, and is the average of the production share at times the corresponding spot price pt at every specific
timestep t. This is expressed by the equation:


where T is the number of time steps in the examined period. The value factor VF is the market value divided with
the average spot price  in the examined period:

A value factor greater than one indicates that the value of electricity generation exceeds the average spot price for
a certain period (typically one year), and vice versa for value factors under one. A value factor over one for a power
supply indicates that the electricity market is demanding electricity production that is in line with the power supply's
production profile.
As can be derived from Table 19 the market value of PV electricity in Sweden has on average been higher than the
spot prices in Sweden under the time period 2014 to 2019. On average a PV system received 10 SEK more per
MWh than the average spot price. One can also see that the market value of PV electricity is higher in the two
southern price areas (SE3 and SE4) than in the two northern ones (SE1 and SE2). This is fortunate, as the average
global radiation is higher in the southern part of Sweden.
Table 19: The average day-ahead spot prices, the market value of PV and the value factor of PV [4].
2014
2015
2016
2017
2018
2019
Average 20142019
Average day-ahead spot prices [SEK/MWh]
SE1
286.0
198.0
275.1
297.1
454.6
401.0
318.6
SE2
286.0
198.1
275.1
297.1
454.6
401.0
318.6
SE3
287.8
205.9
277.8
300.9
457.8
405.5
322.6
SE4
290.5
214.3
280.6
310.0
476.6
420.9
332.1
Average
287.5
204.1
277.1
301.3
460.9
407.1
323.0
The market value of PV [SEK/MWh]
SE1
306.7
182.0
289.7
312.2
489.5
390.6
328.4
SE2
306.7
182.1
289.7
312.2
489.5
390.6
328.5
SE3
309.4
191.2
290.1
317.4
492.4
393.1
332.3
SE4
310.5
204.8
291.4
323.1
520.6
409.2
343.3
Average
308.3
190.0
290.2
316.2
498.0
395.9
333.1
The value factor of PV
SE1
1.072
0.919
1.053
1.051
1.077
0.974
1.024
SE2
1.072
0.919
1.053
1.051
1.077
0.974
1.024
SE3
1.075
0.929
1.044
1.055
1.076
0.969
1.025
SE4
1.069
0.956
1.039
1.042
1.092
0.972
1.028
Average
1.072
0.931
1.047
1.050
1.080
0.972
1.025
Task 1 National Survey Report of PV Power Applications in Sweden
30
Analysing the value factor of PV, Table 19 show that the value factor has varied over the years. In 2015 and 2019
it was below 1.0, while it was higher than 1.0 in 2014, 2016, 2017 and 2018. The highest value factor was achieved
in 2018, which was also the year with highest global radiation records in Sweden (see section 2.7). High production
and a high value factor do not necessarily have a correlation. The reason for the high value factor and an irregularly
high production by PV in 2018 was actually the low production by other power sources in Sweden, due to the long
periods of anticyclone weather (with high barometric pressure). In the Swedish power mix wind power and hydro
stands for large shares (see Figure 8 and Figure 9), which are both production sources that depend on low
barometric pressure weather, as this typically leads to higher wind speeds and precipitation. Furthermore, the
electricity production from Swedish CHP plants are heavily dependent on heat demand from the well-developed
Swedish district heating networks, and the heat demand was of course very low due to long periods of sunny and
warm weather that year. This led to a situation with much higher electricity prices in the summer, compared to in
the winter.
If one compares the value factor of PV with the value factor of the other power sources [4], one can see that hydro
power, PV and CHP in general has value factors above 1.0, while nuclear and wind power consistently have value
factors below1.0. A simplified conclusion is that the price indicates that the Swedish electricity system would benefit
if production with the production profiles similar to either hydro power, PV or CHP would be added. However, this
does not by default correlate with profitability for these power sources.
Table 20: Summary of the market value over the different price areas for the most common power sources
in Sweden from 2014 to 2019.
Table 21: Summary of average value factors over the different price areas for the most common power
sources in Sweden from 2014 to 2019.
2014
2015
2016
2017
2018
2019
Average 2014
2019
Hydro
294.4
205.4
284.0
313.2
469.4
419.0
330.9
Nuclear
283.4
202.3
271.8
294.2
458.8
400.3
318.5
CHP
283.0
227.5
284.3
300.4
451.8
426.8
329.0
Wind
275.2
194.4
268.2
282.4
442.3
384.5
307.8
PV
308.3
190.0
290.2
316.2
498.0
395.9
333.1
2014
2015
2016
2017
2018
2019
Average 2014
2019
Hydro
1.024
1.006
1.025
1.040
1.018
1.029
1.024
Nuclear
0.986
0.991
0.981
0.976
0.995
0.983
0.985
CHP
0.984
1.115
1.026
0.997
0.980
1.061
1.027
Wind
0.957
0.953
0.968
0.937
0.960
0.945
0.953
PV
1.072
0.931
1.047
1.050
1.080
0.972
1.025
Task 1 National Survey Report of PV Power Applications in Sweden
31
As the electricity mix in Sweden changes, (more wind and PV are expected to be built while the two nuclear reactors
at Ringhals 1 and Ringhals 2 face decommissioning as of 30 of December 2019 and 31st of December 2020) the
value factor of the different power sources will change. E.g. in a recent study it was simulated that the value factor
of PV will go from in general being above 1.0 to in general be below 1.0 if PV reaches above 5 % of the total power
production in the electricity mix [27].
Household electricity costs consist of several components. The base is the Nord Pool Spot price of electricity. On
top of that, energy tax, the cost of green electricity certificates, the variable grid charge, the fixed grid charge, VAT
and sometimes an electricity surcharge and a fixed trading fee are added. Figure 15 illustrates the evolution of the
average electricity price for the average end consumer over the years [28]. In Figure 16 the variable part of the
electricity price, which is what can be saved if the micro-producer replaces purchased electricity with self-generated
PV electricity, is illustrated. Furthermore, the value of the excess electricity is shown for two base cases with the
Nord Pool spot price as a base compensation offered by electricity trading utility companies (see section 7.2),
energy compensation from the grid owner (see section 3.3.6), the tax credit system (see section 3.3.5) and with
and without the green electricity certificate, since few PV owners are using the green electricity certificate system
(see section 3.2.3).
Figure 15: Evolution of the average electricity price (in January) for private end consumer with a single-
family house with electric heating.
Task 1 National Survey Report of PV Power Applications in Sweden
32
The reader should note that the electricity price in Figure 16 was the lowest achievable in May 2019, and that most
customers payed more. It is also worth noting that some utility companies offer higher compensations than the Nord
Pool spot price, so with all current possible revenue streams, both the self-consumed electricity and the excess
electricity would have been higher than in the figure.
Global solar radiation
The total amount of solar radiation that hits a horizontal surface is called the global radiation. The global solar
radiation thus consists of the direct radiation from the sun and the diffuse radiation from the rest of the sky and the
Figure 16: The lowest available electricity price for a typical house with district heating in Stockholm with
an annual electricity consumption of about 10 000 kWh/year, a 16-ampere fuse and Vattenfall as the grid
owner in May 2019. Furthermore, the compensation for the excess electricity, with and without the extra
remuneration from green electricity certificates.
Figure 17: Average global solar radiation in Sweden in one year.
Task 1 National Survey Report of PV Power Applications in Sweden
33
ground. The solar radiation therefore depends on the weather, on the position on the globe and the season of the
year. The distribution of annual average global radiation over Sweden is presented in Figure 17 [29].
In the long-term variation of global radiation in Sweden a slight upward trend has been noted and the average solar
radiation has increased by about 8 % from the mid-1980s until today, from about 900 kWh/m2 in 1985 to the current
level of the recent years, which has varied between 9001 000 kWh/m². In 2019 annual average accumulated global
radiation reached 976 kWh/m² [29]. From a PV production perspective, a rather good year, but far below the historic
record of 1050,8 kWh/m2 in 2018, when long periods of anticyclone weather (where barometric pressure is high)
over Scandinavia gave very sunny weather during May and July.
Production costs of PV electricity
The most common way to estimate the production cost of electricity is to calculate the levelized cost of electricity
(LCOE). For calculating the LCOE for PV the following equation can be used;
  
 

 





Where t is the year number ranging from 1 to N, N the lifetime of the power plant, Y the initial annual yield in year
0, Dg the annual degradation of the nominal power of the system, CAPEX the total capital expenditure of the
system, made in year 0, O&Mfix the yearly fixed operation and maintenance cost, O&Mvar the variable operation and
maintenance cost per produced kWh, ReInv major reinvestment needed to reach expected lifetime, x the time in
years after operation start when the major reinvestment ReInv occur and ResValue the residual value or cost of the
system at the end of the lifetime. WACCnom stands for nominal weighted average cost of capital per annum and is
calculated by;
 
where D is the total dept financing, Cd the interest rate of dept financing (Cost of dept), CT the corporate tax rate,
E the total equity financing and Ce the interest rate of equity financing (Cost of equity).
Figure 18: The annual average accumulated global solar radiation in Sweden between 1984 and 2019.
Task 1 National Survey Report of PV Power Applications in Sweden
34
The relationship between the nominal weighted average cost of capital per annum and the real weighted average
cost of capital per annum WACCreal is expressed by;
 

were Infl stands for the annual inflation rate.
The LCOE of PV electricity very much depend on the size of the PV system and the type of actor owning the system,
as the CAPEX and WACC parameters are the two most influential ones for the end result. In this report the
assumptions made for the LCOE of a small residential BAPV systems on a single-family house (hereafter called
villa systems) is discussed, while preliminary assumptions derived from an upcoming interview study for centralized
PV parks are just listed.
The general lifetime of a villa-system is today unknown as very few PV systems in Sweden (or internationally) have
been operated for longer than 20 years. The PV modules usually have a warranty of 25 or 30 years, which could
be used as an indicator of the economic lifetime. It is difficult to prove that the warranty holds for PV systems in
Swedish climate and determine what the degradation rate is in a northern climate, as very few studies have been
made. But one study made on modules from a PV system installed 1981 on Bullerön showed that the PV modules
degraded 2 % over 25 years [30]. This corresponds to a degradation rate of only 0.08 %/year. It is hard to tell from
just one study if these silicon modules were of very good quality or if the Swedish climate with lower temperatures
give lower module degradation in general. There are some unpublished measurements of old systems that indicate
that the latter holds, so a degradation rate of 0.2 % has been assumed for the LCOE calculations.
With regards to the first-year yield of villa systems in Sweden a study summarizing the actual production of 828
(2017) and 1380 (2018) decentralized PV systems concluded that the average specific yield for Sweden adjusted
to average solar irradiation was 801 kWh/kWp for 2017 and 790 kWh/kWp for 2018. Therefore, we assume a first-
year yield of an average villa system to be 800 kWh/kWp. This number can of course be higher for individual systems
as it depends significantly on local factors such as azimuth, tilt, shadowing effects and geographical location in
Sweden (see Figure 17).
As concluded in section 2.2 the typical villa system price, both estimated by the installations companies and as
average of registration systems in the Swedish direct capital subsidy programme was 14.3 SEK/kWp. Adding the
Swedish VAT of 25 % the final CAPEX then becomes 17.9.
The yearly fixed operation and maintenance costs of villa systems are harder to estimate. It is believed that most
of the homeowner’s take care of the administrative work, follow the PV systems production (electricity monitoring)
and take care of module cleaning without reflecting over the cost of their time. Other typical O&M costs does not
apply to homeowners. E.g. the insurance costs of PV systems are usually covered by the normal home insurance,
there is no additional real estate tax if the PV system is mounted on the roof of a villa and there is usually no
electricity and balancing cost, nor additional annual grid expenses for villa systems. The later because the law
states [31] that an electricity user who has a fuse subscription of no more than 63 amperes and who produces
electricity whose feed in can be made with a power of maximum 43.5 kilowatts shall not pay any fee for the feed in
if the electricity user has extracted more electricity from the grid than he/she has fed in to the grid within a year.
However, some cost estimations associated to the fixed operation and maintenance for homeowners can be made.
One example is that Checkwatt (see section 4.4.1.2) offers a visualization product that includes an alarm if the PV
production falls outside expectations to an annual cost of 420 SEK. This can be viewed as an annual electricity
monitoring service. Furthermore, some utilities charge an administrative fee to handle the initial administration of
renewable certificates (see section 3.2.3) and guarantees of origin (see section 3.3.7). This fee is usually a one-
time fee of about 950 SEK, but it is usually not included in turnkey PV system prices. If this one-time administrative
cost is distributed over the 15 years that one can get renewable electricity certificates and for a 10 kWp system, it
becomes 6 SEK/kWp/a.
Task 1 National Survey Report of PV Power Applications in Sweden
35
There are usually no variable costs associated to PV system as no fuel is consumed, nor are there any moving
parts that wear out with regards to each kWh produced. However, as initial grid connection cost is included in the
CAPEX and annual fixed grid cost in the O&Mfix a consistent methodology calls for that all variable costs (or income)
from the grid operator is accounted for in the variable operation and maintenance. Hence, the grid benefit
compensation (see section 3.3.6) that a villa system owner receives, can be regarded as a negative variable cost.
The grid benefit compensation typically varies between 0.02 and 0.10 SEK/kWh for different grid operators but
seems to be around 0.04 SEK/kWh on average.
It is usually assumed that the major reinvestment needed to achieve 30 years lifetime of a PV system is a one-time
replacement of the inverters. No Swedish study has been conducted about the future cost of inverters, but from
international studies a common derived price is 25 /kWp [32][33], which corresponds to 260 SEK/kWp.
The residual value/cost of a PV system is very hard to estimate today, as very few PV systems have been
decommissioned so far. It has been estimated that the global cumulative PV panel waste will amount to 1.78
million tonnes by 2030, and that the corresponding total potential material value recovered through PV panel
treatment and recycling could be 450 million USD. Even if the global PV waste streams still are relatively small, an
international recycling industry is starting to take form [34][35]. However, it is still difficult to speculate what the
dismantling costs and recycled material value will be 30 years into the future. A common assumption is that the
value of the material that is possible to recycle correspond to the cost of decommission a system and take care of
all components, which leads to a residual value of 0 SEK in total. This assumption is very uncertain but the best we
can do with the knowledge of today.
The estimation of the WACC for private individuals is also tricky. When it comes to the cost of equity, few people
think about things like discount rate and risk for his/her personal investments. To simplify, we have therefore
assumed a 100 % dept financing and that a PV system is financed through an enlargement of the mortgage loans,
which rates on average was 1.6 % in 2019. As a private homeowner does not pay any corporate tax rate, the
nominal weighted average cost of capital per annum becomes 1.6 %. As the goal of the Swedish National Bank
(Sveriges Riksbank) is to keep the inflation at 2 % [36], the real weighted average cost of capital per annum
becomes -0.4 %.
All LCOE assumptions are summarized in Table 22, and with these assumptions the LCOE of a 10 kWp villa system
becomes 0.74 SEK/kWh. This is with no subsidies whatsoever. If the direct capital subsidy is used, which gives a
20 % rebate on the CAPEX, the LCOE becomes 0.6 SEK/kWh. These 0.6 SEK/kWh in production cost can be
compared with the revenues of the self-consumed electricity and excess electricity in Figure 16 for assessments of
profitability of small residential systems in Sweden in 2019.
With the assumptions for a 5 MWp centralized PV park listed in Table 22, the LCOE becomes 0.43 SEK/kWh.
Comparing this production cost with the market value of PV the last six years in Table 19, it can be concluded that
profitability for a merchant business model would only be reached with spot prices at levels seen in 2018. Hence,
for market of centralized PV parks in Sweden it is still important that additional value to PV electricity is added
through, either subsidies such as the renewable electricity certificates (see section 3.2.3), or by business models
such as PPAs or cooperative owned PV parks (see section 2.4).
Task 1 National Survey Report of PV Power Applications in Sweden
36
Table 22: LCOE parameters assumptions for a 10 kWp residential system and a 5 MWp centralized PV park
in Sweden.
Parameter
10 kWp residential
5 MWp centralized
Lifetime, N [Years]
30
30
Initial annual yield, Y [kWh/kWp/a]
800
970
System degradation rate, Dg [%]
0.2
0.2
CAPEX [SEK/kWp]
17 900
7 300
Yearly fixed operation and maintenance, O&Mfix
[SEK/kWp/a]
48
83
Variable operation and maintenance, O&Mvar
[SEK/kWh]
-0.04
-0.01
Major reinvestment needed to reach expected
lifetime in at t=x, ReInv [SEK/kWp]
260
650
Years after operation start when major reinvestment
is needed, x [Years]
15
17
Residual value/cost of the system at the end of the
lifetime [SEK/kWp]
0
0
Nominal weighted average cost of capital per
annum, WACCnom [%]
1.6
4.0
Real weighted average cost of capital per annum,
WACCreal [%]
-0.4
1.9
Levelized cost of electricity
0.74 SEK/kWh
0.43 SEK/kWh
Task 1 National Survey Report of PV Power Applications in Sweden
37
3 POLICY FRAMEWORK
This chapter describes the support policies aiming directly or indirectly to drive the development of PV. Direct
support policies have a direct influence on PV development by incentivizing, simplifying or defining adequate
policies. Indirect support policies change the regulatory environment in a way that can push PV development.
Table 23: Summary of PV support measures.
Category
Residential
Commercial +
Industrial
Centralized
Measures in 2019
On-going
New
On-going
New
On-going
New
Feed-in tariffs
-
-
-
-
-
-
Feed-in premium
(above market price)
Yes
-
(Yes)1
-
-
-
Capital subsidies
Yes
-
Yes
-
Yes
-
Green certificates
Yes
-
Yes
-
Yes
-
Renewable portfolio
standards
with/without PV requirements
-
-
-
-
-
-
Income tax credits
Yes2
-
(Yes)2
-
-
-
Self-consumption
Yes
-
Yes
-
-
-
Net-metering
-
-
-
-
-
-
Net-billing
-
-
-
-
-
-
Collective self-consumption
and virtual net-metering
Yes
-
-
-
-
-
Commercial bank activities
e.g. green mortgages
promoting PV
Yes
Yes
-
-
-
-
Activities of electricity utility
businesses
Yes
-
Yes
-
Yes
-
Sustainable building
requirements
Yes
-
Yes
-
-
-
BIPV incentives
-
-
-
-
-
-
Guarantees of origin
Yes
-
Yes
-
Yes
-
1 Only small commercial system can benefit from the tax credit system.
2 The feed in premium is compensated as income tax credits. It is the same system.
Task 1 National Survey Report of PV Power Applications in Sweden
38
National targets for PV
There is no official target for future PV installation in Sweden. However, there exist a political agreement that sets
a goal that Sweden will have a 100% renewable electricity system by 2040, while still planning to be a net exporter
of power. The agreement is not a political stop date for nuclear, but in order to reach the goal, this implies phasing
out the Swedish nuclear reactors that are coming of age and continuously pushing for new renewable energy
production. Many of the introduced legislation changes in the coming years are expected to spring from this political
agreement, and the Swedish PV market will most likely benefit from it.
Direct support policies for PV installations
3.2.1 Direct capital subsidy for PV installations
The current capital subsidy for solar cells was introduced on July 1, 2009. Prior to that, there was support for energy
efficiency in public premises, where solar cells were included as eligible investments that could be applied for. In
this program, PV systems could get 70 % of the installation costs covered and the program got the grid-connected
PV market started in Sweden. The support program for public premises was introduced in 2005 and ended after
2008.
In the beginning of 2009, there was a gap with no direct support for grid-connected PV and the installation rate went
down in 2009, as can be seen in Table 4. However, a new subsidy program was introduced in mid-2009, now open
for all actors [37]. Support rates were 55% for large companies and 60% for all others. Originally, 50 million SEK
was deposited annually for three years. This support program has since been extended, support levels have
changed, and more money has been allocated, summarized in Table 24 and Table 25.
Table 24: Summary of changes in the direct capital subsidy ordinance, support level and duration [38].
Ordinance
Start date
Maximum coverage of the
installation costs
Initial stop
date
2005:205 Energieffektivisering i
offentliga lokaler
2005-04-14
70 %
2008-12-31
2009:689 Stöd till solceller
2009-07-01
55 % for large companies
60 % all others
2011-12-31
2011:1027 ändring av 2009:689
2011-01-01
45 %
2012-12-31
2012:971 ändring av 2009:689
2013-02-01
35 %
2016-12-31
2014:1582 ändring av 2009:689
2015-01-01
30 % companies
20 % all other
2016-12-31
2016:900 ändring av 2009:689
2016-10-13
30 % companies
20 % all other
2019-12-31
2017:1300 ändring av 2009:689
2018-01-01
30 %
2020-12-31
2019:192 ändring av 2009:689
2019-05-08
20 %
2020-12-31
Task 1 National Survey Report of PV Power Applications in Sweden
39
The original program was planned to end by the 31st of December 2011 but has been prolonged several times.
In 2017 the budget was increased even more as the government added 200 million SEK for 2017 and 525 million
SEK for each of the years 20182020. Later another 170 million SEK was added to the 2018 budget, summing up
to 1,085 million SEK in total. After the election in autumn 2018 the parliament passed an autumn budget which
decreased the annual budget for the direct capital subsidy to 436 million SEK for 2019. In the spring of 2019, the
new formed government added 300 million SEK to the budget and later another 500 million SEK in the next autumn
budget. At the same time, it was communicated that the original budget for 2020 would be 835 million SEK. In the
spring budget of 2020, another 200 million SEK was added. The budget over the years is summarized in Figure 19.
Since its introduction, the interest in the capital subsidy program has always been greater than the budget allocated.
When the support was introduced the 1st of July 2009, there had been a gap since the 31st of December 2008 when
support for public premises was ended, and many actors were prepared to invest. The 50 million SEK that were
allocated for 2009 were therefore all applied for already in day 3 [38]. Ever since then, the amount of money applied
for each year has been much higher than the allocated budget. Therefore, a long queue to get the subsidy has
arisen as applications do not fall out of the line at the end of a year. When the situation was at its peak in 2016,
average waiting time was on average 722 days, i.e. almost 2 years [38]. The effect of the previous long waiting
times led to that the program not solely stimulated, but also constituted an upper cap of the Swedish PV market.
Until 2011 the new version of the subsidy covered 60 % (55 % for large companies) of the installation costs of PV
systems, including both material and labour costs. For 2012 this was lowered to 45 % to follow the decreasing
system prices in Sweden and was lowered further in 2013 to 35 %. From 2015 the level was decreased to maximum
30 % for companies and 20 % for other stakeholders. From January 1st, 2018 the Swedish government increased
the subsidy level for “others” to 30 % so that all actors had the same level. From the 8th of May 2019 the level has
been decreased to 20 % for all following the decline of PV prices and increase in electricity prices for end
consumers.
In the current version of the statute, funds can now only be applied for if the system costs are less than 37 000 SEK
excluding VAT/kWp. Solar power/heat hybrid systems can cost up to 90 000 SEK plus VAT/kWp. If the total system
costs exceed 1.2 million SEK, capital support is only granted for the part of the system cost that is less than this
value (see Table 25). The 1.2 million SEK cap effectively lowers the subsidy level available for big PV systems. For
example, if a large centralized PV park of 10 MW at a cost of 70 million SEK receives the 1.2 million SEK subsidy,
it will only cover 1.7 % of the total system cost.
Figure 19: The annual budget of the direct capital subsidy program.
Task 1 National Survey Report of PV Power Applications in Sweden
40
Table 25: Summary of the Swedish direct capital subsidy program [38][39][40].
Maximum
coverage of
the
installation
costs
Upper
cost
limit per
PV
system
[MSEK]
Maximum
system
cost per W
[SEK/W]
Budget
[MSEK]
Granted
funds1
[MSEK]
Disbursed
funds
[MSEK]
Yearly PV
capacity
with
support
from the
direct
capital
subsidy2
[MWp]
Yearly total
installed
grid
connected
PV capacity
[MWp]
Total
2006
2008
70% Only for
public
building
5.0
-
138
138
138
2.96
2.83
2009
55 %
Companies
60 % Others
2.0
75
212
28.43
0.05
0.20
0.52
2010
74.12
33.23
2.07
1.78
2011
70.99
81.02
3.13
3.44
2012
45%
1.5
40
57.5
57.70
78.35
6.31
7.18
2013
35%
1.3
37
210
108.64
73.16
11.73
17.96
2014
58.94
75.60
22.30
34.00
2015
30 %
Companies
20 % Other
1.2
90
71.65
78.17
30.10
47.07
2016
316
223.04
138.79
52.58
57.23
2017
585.6
321.86
235.71
78.66
82.92
2018
30%
1085
1069.79
601.70
171.60
155.89
2019
20%
1236
828.416
676.53
206.39
286.99
Total
-
-
-
3930.10
3051.58
2210.30
587.75
698.05
1Extract from Boverket's database 2020-05-31. The granted resources are expected payments which may change if the circumstances change in
individual cases.
2The numbers are probably higher for several of the later years, as there is a large delay in the system due to the long ques.
Since the start of the first program in 2006 until the end in 2019, 3 051.58 million SEK had been granted and
2 210.30 million SEK had been disbursed [40]. This capital has supported a total installation of 593.12 MWp so far.
This means that the average subsidy for all PV systems since 2006 to 2019 has been 3.7 SEK/Wp, down from
11.8 SEK/Wp in 2015, 8.9 SEK/Wp in 2016, 5.3 SEK/Wp in 2017 and 4.6 SEK/Wp in 2018.
Listed in Table 25 is the annual installed PV capacity that has received support from the direct capital subsidy as
compared to the statistics of yearly installed grid connect PV capacities. The statistic from direct capital subsidy
program correlates well with the yearly installation statistics, except for 2009, 2018 and 2019. For 2009 it can be
explained with a backlog of installations from the older direct capital subsidy program. The difference in the statistics
for 2018 can probably be related to the switch from sales statistics to collecting the statistics from the grid owner.
The explanation for the incoherence of 2019 is probably a delay in disbursement of support to already
commissioned systems. A general explanation for the higher number of annual installed capacities compared to
yearly PV capacity with support from the direct capital subsidy is that nowadays it is more common to complete the
installation of the PV system without first being granted the direct capital subsidy. This can be seen in the database
Task 1 National Survey Report of PV Power Applications in Sweden
41
of the program where there are several systems that have a registered system completion date that is earlier than
the granted support date.
3.2.2 Direct capital subsidy program for renewable energy production in the
agriculture industry
In 2015 the Swedish Board of Agriculture (Jordbruksverket) introduced a direct capital subsidy for production of
renewable energy. The subsidy can be applied for if a company has a business in agriculture, gardening or herding.
The subsidy is given to support production of renewable energy for both self-consumption in agricultural activities
and for sale. This may be in the form of biomass, wind, hydropower, geothermal or PV [41].
The subsidy is granted for the purchase of materials, services of consultants to plan and carry out the investment,
but not salary to employees or work done by the applicant. The level of the direct capital subsidy is 40 % of the total
expenses. The maximum amount of aid a company can receive is decided by the respective County Administration
(Länsstyrelse) or by the Sami Parliament (Sametinget) [41].
The support level of this direct capital subsidy is higher than in the national direct capital subsidy program for PV
installation. This can be motivated by the fact that many agricultural companies pay a lower level of the Swedish
energy tax (see section 3.3.1), which makes the value of self-consumed electricity lower than for regular electricity
consumers and therefore a PV system or any other renewable system is less profitable. A higher subsidy level
increases the profitability of PV installations on barns and other agriculture buildings, which is a market segment
with large potential [42].
Until the end of 2019, the program has granted and disbursed support to 101 PV projects with a total capacity of
3 725 kW for a total amount of 15 744 718 SEK, in accordance with Table 26.
Table 26: Summary of the PV projects in the direct capital subsidy program for renewable production in the
agriculture industry.
Year
Number of financed PV
projects
Disbursed funds
[SEK]
Installed PV capacity
[kWp]
Average cost
per kWp
2016
5
1 026 096
203
13.6
2017
25
2 865 775
632
13.2
2018
31
5 180 719
1109
12.3
2019
40
6 672 128
1781
11.9
Total
101
15 744 718
3725
12.4
3.2.3 The renewable electricity certificate system
The basic principle of the renewable electricity certificate system is that producers of renewable electricity receive
one certificate from the Government for each MWh produced. Meanwhile, certain electricity stakeholders are
obliged to purchase certificates representing a specific share of the electricity they sell or use, the so-called quota
obligation. The sale of certificates gives producers an extra income in addition to the revenues from electricity sales.
Ultimately it is the electricity consumers that pay for the expansion of renewable electricity production as the cost
of the certificates is a part of the end consumers' electricity price. The energy sources that are entitled to receive
certificates are wind power, some small hydro, some biofuels, solar, geothermal, wave and peat in power
generation, and each production facility can receive renewable electricity certificates for a maximum of 15 years
and limited to the end of year 2045.
The quota-bound stakeholders are: electricity suppliers; electricity consumers who use electricity that they
themselves produced if the amount used is more than 60 MWh per year and it has been produced in a plant with
an installed capacity of more than 50 kWp; electricity consumers that have used electricity that they have imported
or purchased on the Nordic power exchange; producers who produce electricity to a grid which is used without
Task 1 National Survey Report of PV Power Applications in Sweden
42
support of grid concession (nätkoncession), provided the electricity used amounts to more than 60 MWh per year
and if the electricity is commercially supplied to consumers who use the electricity on the same grid; and electricity-
intensive industries that have been registered by the Swedish Energy Agency (Energimyndigheten).
The system was introduced in Sweden in 2003 to increase the use of renewable electricity. The goal of the certificate
system at that time was to increase the annual electricity production from renewable energy sources by 17 TWh in
2016 compared to the levels of 2002. In 2012 Sweden and Norway joined forces and formed a joint certificate
market. The objective then was that the electricity certificate system would increase the production of electricity
from renewable sources by 26.4 TWh between 2012 and 2020 in Sweden and Norway combined. In the common
market there is the opportunity to deal with both Swedish and Norwegian certificates to meet quotas [43]. In March
2015, the Swedish and Norwegian governments made a new agreement that raised the common goal of 2 TWh to
28.4 TWh until 2020. This increase will only be funded by Swedish consumers [44].
Furthermore, in the wake of the broad political agreement on the future Swedish electricity system (see section 3.1)
it was decided in 2017 that the electricity certificate system will be extended to 2030 with another 18 TWh of
renewable electricity. The prolongation involves a linear escalation of the 18 TWh with 2 TWh per year from 2022
to 2030. However, due to the rapid construction of wind power, the Swedish Energy Agency anticipate that the 2030
goal could be reached by as early as 2021 [45]. To avoid that the prices of the certificates drops down to zero due
to over-establishment of renewable energy sources, which would be detrimental to early investors, a new
proposition was circulated on March 18th, 2020. This proposition suggests that no power production constructed
after 2021 will be eligible for certificates, and that the termination of the certificate system be advanced to 2035
rather than the current 2045 end date [46].
In 2019, the average price for a certificate was reduced to 90.5 SEK/MWh from the average price of
145.7 SEK/MWh in 2018 [47] and the quota obligation was increased to 30.5 %, from 29.9 % in 2018 [48]. The
established trend in the level of the quota duties is summarized in Figure 21 and the price trend in Figure 20. Since
the start in 2003 until the end of 2019, certificates corresponding to 294.4 TWh has been issued in Sweden with PV
accounting for 463.7 GWh of them [47].
Figure 21: The quota levels in the renewable electricity certificate system [48].
Figure 20: The price development of the renewable electricity certificates [47].
Task 1 National Survey Report of PV Power Applications in Sweden
43
Until 2005 there were no PV systems in the electricity certificate system [49]. However, as Table 27 show, the
number of approved PV installations increased over the years and a majority of the approved plants in the certificate
system are now PV systems. However, these systems only make up for a very small part of the total installed power
and produced certificates. As can be seen in Figure 22, most of the certificates go to wind and biomass power,
which produce more in the winter months. Even after considering the electricity consumption in Sweden, which is
higher in the winter, the allocation of certificates is higher in the winter months. By comparing Figure 22 and Figure
23, it is easy to see the potential for solar to level out the seasonality of certificate issuance. However, the installed
solar capacity would have to increase dramatically in magnitude.
340.1 MW of PV power was accepted in the certificate system at the end of 2019 [49], making it 49 % of the total
installed PV grid connected capacity. As Figure 24a shows, that share has been rather constant over the years.
Figure 23: Renewable electricity certificates issued to PV produced electricity [47].
Figure 24: (a) Percentage of the installed PV power in Sweden that is approved for renewable electricity
certificates. (b) Allocated certificates to PV electricity divided by the theoretical yearly PV production
[47]
.
Figure 22: The allocation of renewable electricity certificates to different technologies [47].
Task 1 National Survey Report of PV Power Applications in Sweden
44
Table 27: Statistics about PV in the electricity certificate system [47][49].
Number of
approved PV
systems in the
certificate
system at the
end of each
year
Total approved
solar power in
the certificate
system at the
end of each year
Average size of
PV systems in
the certificate
system at the
end of each year
Number of issued
certificates from
solar cells per year
Number of
produced
certificates
eligible in kWh per
installed power
and year
2006
4
105 kW
26.3 kW
20 MWh
190 kWh/kW
2007
7
185 kW
26.4 kW
19 MWh
103 kWh/kW
2008
17
507 kW
29.8 kW
129 MWh
254 kWh/kW
2009
28
1 047 kW
37.4 kW
212 MWh
202 kWh/kW
2010
60
3 060 kW
51.0 kW
278 MWh
91 kWh/kW
2011
134
3 962 kW
29.6 kW
556 MWh
140 kWh/kW
2012
388
7 582 kW
19.5 kW
1 029 MWh
136 kWh/kW
2013
959
17 560 kW
18.3 kW
3 705 MWh
211 kWh/kW
2014
1 843
34 835 kW
18.9 kW
10 771 MWh
309 kWh/kW
2015
3 235
61 458 kW
19.0 kW
24 544 MWh
399 kWh/kW
2016
5 058
100 642 kW
19.9 kW
45 535 MWh
452 kWh/kW
2017
7 336
153 790 kW
21.0 kW
74 148 MWh
482 kWh/kW
2018
11 053
241 323 kW
21.8 kW
120 919 MWh
501 kWh/kW
2019
15 415
340 105 kW
22.1 kW
181 840 MWh
535 kWh/kW
There are several reasons why it has been difficult for PV to take advantage of the electricity certificate system and
why solar owners refrain from applying. One is that many owners of small photovoltaic systems do not consider the
income that certificates provide worth the extra administrative burden. The main reason for this is that the meter
that registers the electricity produced by a PV system is often placed at the interface between the building and the
grid. This has the consequence that it is only excess production from a PV system that generates certificates and
the solar electricity that is self-consumed internally in the building is not awarded any certificates. A PV owner can
get certificates also for the self-consumed electricity if an internal meter is installed. For smaller PV systems, the
additional cost of such a meter and the annual metering fee can be higher than the revenue from the additional
certificates, which means that many refrains from applying for certificates for the self-consumed electricity. This is
the main reason why the proportion of PV production that receive certificates per year is so low in Table 27 and
why only 181 840 certificates were issued to PV in 2019 [47]. This is only about 29 % of the theoretical production
of 691 MW × 900 kWh/kW 622 GWh from all grid-connected PV systems in Sweden. The reader should note that
the calculation above is very simplified since the whole cumulative grid-connected PV power at the end of 2019
was not up and running throughout the whole year.
Another reason why it has been difficult for PV to take advantage of the certificate system is that it can be difficult
for an individual to find a buyer for only a few certificates. However, this is about to change as more and more
utilities have begun offering to purchase certificates from micro-producers (see section 7.2). This, and the fact that
the systems are getting increasingly larger as the prices are going down, may be the reason for the clear trend in
in Figure 24b and Table 27 where the share of the produced PV electricity that receives certificates is increasing.
To summarize, the renewable electricity certificate system in the present shape is being used by some larger PV
systems and parks but does not provide a significant support to increase smaller PV installations in Sweden in
general. It is also likely to expect a decision about an earlier termination of the system in the near future.
Task 1 National Survey Report of PV Power Applications in Sweden
45
3.2.4 BIPV development measures
There were no specific BIPV measures in Sweden in 2019.
Self-consumption measures
Self-consumption of PV electricity is allowed in Sweden and is the main business model that is driving the market.
Several utilities offer various agreements for the excess electricity of a micro-producer.
Since the spring of 2014 an ongoing debate about what tax rules that apply to micro-producers has been under
way, and consequently several changes in the different tax laws has occurred since then. Listed in this section are
some specific tax laws that affect self-consumption and micro-producers.
Table 28: Summary of self-consumption regulations for small private PV systems in 2019
PV self-consumption
1
Right to self-consume
Yes
2
Revenues from self-consumed PV
Savings on the electricity bill
3
Charges to finance Transmission,
Distribution grids & Renewable Levies
None
Excess PV electricity
4
Revenues from excess PV electricity
injected into the grid
Various offers from utilities +
0.6 SEK/kWh + Green
certificates + Feed in
compensation from the grid
owner
5
Maximum timeframe for compensation
of fluxes
One year
6
Geographical compensation (virtual
self-consumption or metering)
On site only
Other characteristics
7
Regulatory scheme duration
Subject to annual revision
8
Third party ownership accepted
Yes
9
Grid codes and/or additional taxes/fees
impacting the revenues of the prosumer
Grid codes requirements
10
Regulations on enablers of self-
consumption (storage, DSM…)
Storage investment subsidy
11
PV system size limitations
1.Below 43.5 kWp and 63 A,
and net-consumer on yearly
basis, for free feed-in
subscription towards the grid
owner.
2.Below 100 A and maximum
30 MWh/year for the tax
credit.
3.Below 255 kWp for no
energy tax on self-consumed
electricity.
Task 1 National Survey Report of PV Power Applications in Sweden
46
12
Electricity system limitations
None
13
Additional features
Feed in compensation from
the grid owner
3.3.1 General taxes on electricity
In Sweden, taxes and fees are charged at both the production of electricity and at the consumption of electricity.
Taxes that are associated with the production of electricity are property taxes (see section 3.6.1), taxes on fuels
and taxes on emissions to the atmosphere.
The taxes associated with electricity consumption are mainly the energy tax on electricity and the value added tax
(VAT). The manufacturing and agriculture industry paid 0.005 SEK/kWh in energy tax in 2019. The Energy tax rate
has been increased in steps for residential customers the last couple of years after the Swedish Energy Commission
(see section 3.1) decided to remove the specific tax on nuclear and finance that with a higher energy tax [50]. The
latest increase occurred the first of January 2020 when the energy tax was increased from 0.347 SEK/kWh
(excluding VAT) to 0.353 SEK/kWh. The exception is some municipalities in northern Sweden where the energy
tax now is 0.257 SEK/kWh (excluding VAT) [51]. Additionally, a VAT of 25 % is applied on top of the energy tax.
Altogether, roughly 40 % of the total consumer electricity price (including grid fees) was taxes, VAT and certificates
in 2019.
3.3.2 Energy tax on self-consumption
There has been an ongoing modernization of the Swedish tax rules when it comes to taxation on self-consumed
electricity. The current rules, which were implemented on July 1st, 2017, can be can be summarized as [51]:
A solar electricity producer that owns one or more PV systems whose total power amounts to less than
255 kWp does not have to pay any energy tax for the self-consumed electricity consumed within the same
premises as where the PV systems is installed.
A solar producer that owns several PV systems, which total power amounts to 255 kWp or more, but where
all the individual PV systems are smaller than 255 kWp, pays an energy tax of 0.005 SEK/kWh on the self-
consumed electricity used within the same premises as where the PV systems is installed.
A solar producer that owns a PV system larger than 255 kWp pays the normal energy tax of 0.347 SEK/kWh
on the self-consumed electricity used within the same premises as where the PV systems is installed, but
0.005 SEK/kWh in energy tax for the self-consumed electricity from the other systems if they are less than
255 kWp.
The current legislation has the effect that few PV systems over 255 kWp are built for self-consumption in Sweden.
The full energy tax on self-consumed electricity limits the profitability for those systems. This leads to that the large
technical potential of PV systems within the industrial sector currently is unexploited.
When it comes to systems smaller than 255 kWp the main economic obstacle for real estate owners that plan to
build several small PV systems has been removed with this legislation. However, the administrative burden of
measuring and reporting the self-consumed electricity if the total power limit of 255 kWp is exceeded remains.
However, there is an ongoing discussion on how to tax self-consumption, and it is not unlikely that changes to this
legislation will take place in the near future. One positive prospect in this matter is that the government has declared
their purpose to remove the 0.005 SEK/kWh energy tax for real estate owners that own several small systems, and
thereby remove the administrative barrier, by sending in a state aid notification to the EU Commission [52].
3.3.3 Deduction of the VAT for the PV system
Sweden has a non-deductible VAT for permanent residents. The possibility to deduct the input VAT for a PV system
therefore depends on whether all produced electricity is sold, or if a portion of the generated electricity is consumed
directly for housing and only the excess electricity is sold to an electricity supplier [53].
Task 1 National Survey Report of PV Power Applications in Sweden
47
If only the excess electricity is sold to an electricity supplier and the PV system also serves the private facility, then
deduction of the VAT for the PV system is not allowed.
If all generated electricity is delivered to an electricity supplier, then the PV system is used exclusively in economic
activity and deduction of the VAT for the PV system is allowed.
However, according to Case 6174-18 of the Swedish Supreme Administrative Court, it is stated that the VAT
deduction waiver for permanent housing does not include homeowner’s association's (BRF) acquisition of PV
systems. The homeowner’s association is granted the right of deduction for VAT as long as the acquisition is
attributable to the association's VAT liable sales of surplus electricity. In summary, this means that a homeowner’s
association may deduct VAT on the investment in a PV system corresponding to the proportion of electricity that
will be sold to the electricity grid.
3.3.4 VAT on the revenues of the excess electricity
A PV system owner that sells the excess electricity will receive compensation from the electricity trading utility
company and from the grid owner (see section 3.3.5). If the total renumeration from the property (including other
revenue streams than selling excess electricity) under a tax year exceeds 30 000 SEK, excluding VAT, the house
owner needs to register for VAT and handle the VAT streams between the utilities that buy the excess electricity
and the tax agency (see Figure 25). If the total annual sales do not exceed 30 000 SEK the PV system owner are
exempted from VAT [54].
At a reimbursement from a utility company of 0.5 SEK/kWh, 60 000 kWh can be sold per year before reaching the
limit. At a self-consumption rate of 50 % it corresponds to a PV system of a size of about 120 kWp. Hence, as a
general rule of thumb, the 30 000 SEK limit corresponds to PV systems of 100200 kWp, which is a very large PV
system size for regular homeowners.
The limit of 30 000 SEK was implemented the 1st of January 2017 and is an improvement for the Swedish PV
market. In 2016 a private homeowner needed to go through the administration of registering for VAT and reporting
the VAT to the Government. The new set of rules makes it much easier for a household to invest in PV in Sweden.
Furthermore, it has also reduced the administration for the tax agency as it doesn't need to handle the registration
of several thousands of private PV owners. As the Government is not losing any tax income, as illustrated in Figure
25, it is a win-win situation for all parties as compared to before the 1st of January 2017.
3.3.5 Tax credit for micro-producers of renewable electricity
The 1st of January 2015, an amendment to the Income Tax Act was introduced [55]. The tax credit is 0.60 SEK/kWh
for renewable electricity fed into the grid. The right to receive the tax credit applies to both physical and legal
persons. To be entitled to receive the tax credit the PV system owner must:
feed in the excess electricity to the grid at the same connection point as where the electricity is received,
not have a fuse that exceed 100 amperes at the connection point,
Figure 25: Illustration of the revenue and VAT streams for the excess electricity for a private PV owner
before and after the 1st of January 2017.
Task 1 National Survey Report of PV Power Applications in Sweden
48
notify the grid owner that renewable electricity is produced at the connection point.
The basis for the tax reduction is the number of kWh that are fed into the grid at the connection point within a
calendar year. However, the maximum number of kWh for which a system owner can receive the tax credit may not
exceed the number of kWh bought within the same year. In addition, one is only obliged to a maximum of
30 000 kWh per year. The grid owner will file the measurement on how much electricity that has been fed into and
out of the connection point in one year and the data will be sent to the Swedish Tax Agency (Skatteverket). The tax
reduction will then be included in the income tax return information, which should be submitted to the Swedish Tax
Agency in May the following year.
The tax credit of 0.60 SEK/kWh is received on top of other compensations for the excess electricity, such as
compensation offered by electricity retailer utility companies (see section 7.2), the grid benefit compensation (see
section 3.3.6) and revenues for selling renewable electricity certificates and guarantees of origins (see section 3.2.3
and 3.3.7). The tax credit system can be seen as a feed-in premium for the excess electricity. However, unlike the
case in other European countries, the Swedish tax credit system does not offer a guaranteed revenue over a specific
period. This means that the extra income that a micro-producer receives from the tax credit system when feeding
electricity to the grid can be withdrawn, increased or decreased by a political decision.
According to the Swedish Tax Agency 29 512 micro-producers of renewable electricity received a total 74 884
654 SEK for excess electricity fed into the grid in 2019. This amount is based on 124 807 MWh of excess electricity
fed into the low voltage grid by micro producers, reported by the grid operators to the Swedish Tax Agency. The
average production fed into the grid per micro-producer with a capacity of less 100 amperes was thereby 4 229 kWh
in 2019, as summarized in Table 29.
Table 29: Statistics about tax credit for micro-producers of renewable electricity.
Year
Number of micro-
producers
Paid funds each year
[SEK]
The basis (excess
electricity) of the tax
reduction [kWh]
Average electricity fed
into the grid per
micro-producer
[kWh/micro-producer]
2015
5 391
11 421 003
19 035 005
3 531
2016
8 161
19 545 400
32 575 667
3 992
2017
12 138
30 068 341
50 113 902
4 129
2018
20 350
57 098 546
95 164 243
4 676
2019
29 762
75 682 222
126 137 037
4 238
Total
-
193 815 512
323 025 853
-
These numbers contain, not only PV, but all small-scale renewable production. To get an estimation of the share of
PV in the tax reduction one can look at the power of systems that had a production capacity below 69 kW (which
corresponds to the 100-ampere limit of the tax reduction) in the green electricity certificate system. In total there
was 224 677 kW of systems with a power less than 69 kW by 2019-12-31. Of this power 220 111 kW was PV, and
the rest was 2 372 kW wind, 1 235 kW hydro and 959 kW biofuel or peat system [49]. If one uses this relationship,
a rough estimation is that 189 876 695 SEK of the total 193 815 512 SEK has been paid to PV system owners
through the tax credit for micro-production system until the end of 2019. This calculation is just a rough estimation
since both the total produced electricity in a year and the self-consumption ratio differ between the different
renewable energy technologies and between all the individual production facilities.
3.3.6 Grid benefit compensation
A micro-producer is entitled to reimbursement from the grid owner for the electricity that is fed into the grid. The
compensation shall correspond to the value of the energy loss reduction in the grid that the excess electricity entails
Task 1 National Survey Report of PV Power Applications in Sweden
49
[31]. The compensation varies between different grid owners and grid areas and is typically between 0.02 and 0.10
SEK/kWh.
Task 1 National Survey Report of PV Power Applications in Sweden
50
3.3.7 Guarantees of origin
Guarantees of origin (GOs), were introduced in Sweden on December 1st in 2010, and are electronic documents
that guarantee the origin of the electricity. Electricity producers receive a guarantee from the Government for each
MWh of electricity. The electricity producer can then sell GOs on an open market. The buyer is usually a utility
company who wants to sell that specific type of electricity. Utilities buy guarantees of origin corresponding to the
amount of electricity they would like to sell. GOs are issued for all types of power generation and applying for
guarantees of origin is still voluntary.
When the electricity supplier has bought the GOs and sold electricity to a customer, the GOs are nullified. The
nullification ensures that the amount of electricity sold from a specific source is equivalent to the amount of electricity
produced from that source.
Table 30: Statistics about solar guarantees of origin [47].
Year
Solar GOs
issued in
Sweden
Solar GOs
transferred
within
Sweden
Solar GOs
imported to
Sweden
Solar GOs
exported from
Sweden
Solar GOs
nullified in
Sweden
Solar GOs
that expired in
Sweden
2011
194
96
-
-
0
0
2012
378
173
-
-
104
90
2013
2 337
1 373
-
-
324
294
2014
7 846
4 563
-
-
1 510
972
2015
18 953
11 301
-
-
5 314
2 830
2016
36 702
22 183
-
-
11 966
9 454
2017
58 806
65 936
1 481 437
69 279
96 442
16 146
2018
111 143
1 306 626
568 810
1 467 852
317 167
29 499
2019
166 670
894 568
1 527 014
526 292
976 716
51 935
A utility company that wants to sell, for example, electricity from PV can do so in two ways. Either by nullify
guarantees of origin from its own PV-system, or by purchasing guarantees of origin from a PV-system owner and
nullify them when the supplier sells the electricity to the end customer.
The GO act (2010:601) and regulation (2010:853) was changed the first of June 2017 to enable the Swedish Energy
Agency to issue GOs for electricity that can be transferred to another EU Member State [56]. Thus, the Swedish
GO system now has been adapted to the EECS standard.
As a result of the new legislation and due to the increase of PV system the trading with solar GOs in Sweden
increased dramatically, as can be seen in Table 30. In 2017 a lot of solar GOs was imported to Sweden, and in
2018 a lot of them was exported. 2019 is once again seeing an increase in imported solar GOs, along with a three-
fold increase in nullification from the year before.
The trading volumes of solar GOs are still too small in Sweden for the system to really generate an actual market
price. But according to Svensk Kraftmäkling (SKM), the largest brokerage firm in the Nordic electricity market, Solar
GOs were generally traded in Europe for 60 -cents/MWh in 2019, which would translate to the value 0.006
SEK/kWh. However, some Swedish utilities buy solar GOs issued in Sweden from small-scale PV owners for a
much higher price.
Task 1 National Survey Report of PV Power Applications in Sweden
51
Collective self-consumption, community solar and similar
measures
Collective self-consumption from a PV system in an apartment building is allowed in Sweden if all the apartments
share the same grid subscription. A number of housing companies and housing societies are using this option. The
general approach for such a solution is that the whole apartment building share one electricity contract with the
utility and that the electricity is included in the rent, but that electricity consumption is being measured internally by
the housing company/society and the monthly rent is affected by this consumption.
Collective self-consumption where the electricity is transported over a grid that is covered by a grid concession is
currently not allowed.
Tenders, auctions & similar schemes
There were no national or regional tenders or auctions in 2019 in Sweden. However, commercial PPAs for PV exists
in Sweden.
Utility-scale measures including floating and agricultural PV
There were no specific national or regional subsidies for utility-scale PV in Sweden in 2019. The support and
measures accessible for utility-scale PV are the general support schemes of the direct capital subsidy (see section
3.2.1) but with a cap of 1.2 million SEK per system which lowers the benefits of utility-scale centralized PV parks,
the green electricity certificate system (see section 3.2.3) and the guarantees of origin system (see section 3.3.7).
3.6.1 Property taxes
Power generation facilities in Sweden are charged with a general industrial property tax. Today the PV technology
is not defined as power generation technology in the valuation rules for power production units in the real estate
law (Fastighetstaxeringslagen). The tax agency has so far classified the few large PV parks that exist as “other
building” and taxed them as an industrial unit. Currently the property tax of an industrial unit represents 0.5 % of the
assessed value of the facility [57].
Social Policies
There were no social policy measures directed to PV in Sweden in 2019.
Retrospective measures applied to PV
There are currently no retrospective measures applied to any subsidies for PV in Sweden.
Indirect policy issues
3.9.1 Rural electrification measures
There were no rural electrification measures in Sweden in 2018.
3.9.2 Exemption for building permits for solar energy systems
As from the first of August 2018 PV and solar thermal system installations on buildings are exempted from building
permits in general. Some installations still require building permits, and that is when the one of following situations
applies [58]:
When the PV or solar thermal system does not follow the shape of the current building.
When the PV or solar thermal system is installed within a residential area that is classified as valuable
from either a historical, cultural, environmental or artistic point of view.
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When the PV or solar thermal system is installed within a residential area where the municipality in the
detailed development plan defined that building permits are required for solar systems.
When the PV or solar thermal system is installed within an area that are of national interest for the military.
Maps over these areas are located can be found here.
In these cases, a regular building permit must be submitted to the municipality.
3.9.3 Direct capital subsidy for storage of self-produced electricity
To help increase individual customers possibility to store their own produced electricity the Swedish Government
has introduced a direct capital subsidy for energy storage owned by private households. The subsidy is given for
energy storages that fulfil these criteria [59];
connected to an electricity production system for self-consumption of renewable electricity,
connected to the grid,
helps to store electricity for use at a time other than the time of production,
which increases the annual share of self-produced electricity used within the property to better meet the
electricity consumption.
The state aid is not given to installations of storage that has received the ROT tax deduction (see section 3.9.7) or
any other public support. Eligible costs are the costs of installing electrical energy storage systems, such as
batteries, cabling, control systems, smart energy hubs and installation work. The subsidy is only granted to
individuals with a maximum of 60 % of the eligible costs, but no more than 50 000 SEK [59].
For other end consumers than private households, that want to invest in PV with storage, the storage can be
included in the overall system cost in the regular direct capital subsidy for PV (see section 3.2.1)
The state aid for storage program was introduced in November 2016, but all storage installations that meet the
criteria and were installed in 2016 are entitled to apply for the subsidy. The budget for the storage subsidy program
is 25 million SEK for 2016 and 50 million per year for 2017 to 2019. However, the budget for this subsidy has not
been used in any single year. The total granted and disbursement of funds as of the end of 2019 was
51 766 639 SEK and 23 817 471 SEK, respectively.
3.9.4 Future aggregated grid subscriptions
From 2021 it will be possible to subscribe for aggregated grid contracts for connection points in areas where
Svenska Kraftnät previously refused increased grid connection capacities. The prerequisite is that there are
connection agreements for the points and that it is technically possible to connect them. An aggregated subscription
means that the grid customer is given the opportunity to transfer power between the different connection points that
are included in the aggregated subscription. These can be used to alleviate the situation in areas where there is a
lack of grid capacity. The change is being implemented in the existing tariff structure in order to be able to facilitate
the rapidly emerging markets relatively quickly.
3.9.5 Support for electric vehicles
3.9.5.1 The Bonus-Malus systems
The Bonus Malus system was introduced the 1st of July 2018 to replace the previously existing system of five-year
tax exemption for vehicles classified as a green vehicle.
The main cause for the new law was to increase the share of vehicles with low carbon footprint and to lower the
dependency of fossil fuels in the fleet of vehicles. For cars and light trucks taken into use from the 1st of July 2018,
an individual can get up to 60 000 SEK as a capital subsidy. For every gram of carbon dioxide per kilometre that
the vehicle emits, the bonus is reduced by a set amount. If the vehicle was sold and taken into use prior to 2020,
the bonus is reduced by 833 SEK per additional gram. For vehicles taken into use in 2020 or later, the bonus is
reduced by 713 SEK per additional gram. The lowest bonus was 10 000 SEK at 60 gCO2/km and from there the
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bonus ceases. However, as of 2020, the lowest bonus can now be obtained for vehicles with emissions at 70
gCO2/km. Furthermore, the maximum bonus cannot exceed 25 percent of the vehicles’ price [60].
A company can also get a bonus. However, for companies it is up to 35 percent of the price difference between the
price of the low emitting vehicles’ and the price for the closest comparable vehicle [61].
For petrol- and diesel-powered vehicles, an increased vehicle tax (malus) is added for the first three years. The tax
increase is based on how much carbon dioxide the vehicle emits. If the vehicle emits 96-140 gCO2/km the tax
increase is 82 SEK per gram carbon dioxide emitted per kilometre. If the vehicle emits more than 140 gCO2/km the
tax increase is 107 SEK per gram carbon dioxide emitted per kilometre.
For 2019, there was 1.28 billion SEK administered by the Swedish Transport Agency [62]. Year 2020 has an
increased budget of 1.76 billion SEK.
3.9.5.2 Subsidies for charging infrastructure
To favour the development of the electrical vehicle market it is important to create a liable charging infrastructure.
In 2015 a capital subsidy (Klimatklivet) was established, aimed at supporting local and regional investments that
lower carbon dioxide emissions. The grant is administered by the Swedish Environmental Protection Agency
(Naturvårdsverket) and can be applied by