The Swedish Ministry of Finance has proposed reducing subsidies for solar panel installations as part of a broader plan to gradually phasing out support for micro production of renewable energy on 18 March 2025.
The proposal, introduced under the “Changed Tax Subsidies for Solar Cells and Microproduction of Electricity Bill 2024/25:109” states that the tax credit for solar panel installations would drop from 20% to 15%, the rate that was in place before 2023.
Additionally, the tax reduction for microproduction of renewable electricity would be removed entirely.
If approved, the changes will take effect on 1 July 2025 for solar panel subsidies and on 1 January 2026 for the removal of the microproduction tax reduction.
Earlier, The Swedish government presented its 2025 Budget Bill on 19 September 2024 which proposed eliminating the tax deduction for micro-production of renewable electricity.
