To realise its ambitious plan to run entirely on renewable energy by 2040, Sweden has announced plans to scrap taxes on its production of solar energy next year.

As reported by The Local, the Swedish finance ministry said in a statement that the production of solar electricity for own use would be entirely exempt from taxes. Electricity providers would meanwhile only be taxed 500 kronor (€51) per megawatt hour, which is a 98% reduction from the current level.

“This makes fast investments possible,” Social Democratic Finance Minister Magdalena Andersson said.

Solar energy is currently marginal in the Nordic nation, accounting for less than 0.1% of electricity production. Sweden relies mostly on hydropower (39%) and nuclear power (36%).

The proposal is likely to be adopted by parliament, with the centre-right opposition having criticised the minister for her lack of ambition with regards to renewable energy investments, reported The Local.

https://www.neweurope.eu/article/sweden-scrap-solar-energy-tax/