Only batteries used solely to store energy for individual households will be eligible for the deduction. „The Swedish Tax Agency must immediately reconsider its interpretation and the government needs to ensure that the energy transition is not jeopardized by the misinterpretation“, says Anna Werner, CEO of the Swedish Solar Energy Association (Svensk Solenergi).
Batteries that are partly used to buy and sell energy to the grid, cut power peaks or deliver support services to the electricity grid will not receive a tax reduction, according to the Swedish Tax Agency's new interpretation.
Did you miss that? Residential solar batteries increasingly popular in Sweden
„Sales of batteries are now slowing down considerably due to a misinterpretation even though the text of the law has not changed. All batteries with more functions than storage for self-use will not receive a tax reduction. This change is slowing down both technological development and the transition to renewable energy. A major setback for the green transition," says Anna Werner.
Only solar batteries used solely to store own electricity are entitled to tax reduction
At the turn of the year, the Swedish Tax Agency changed its description of the conditions for obtaining a tax reduction for green technology for batteries on its website. The new website text, which is a far-reaching interpretation of the legislation, means that only battery storage systems used solely to store their own electricity are entitled to the tax reduction.
„There are very few batteries that are used so unilaterally. In this case, the batteries will not even be used in the winter and, as everyone knows, batteries thrive on being used. The Swedish Tax Agency has also made an obviously incorrect interpretation of the law. The sudden change does not follow the intention of the legislation - to promote the green transition and strengthen homeowners' resilience to high electricity prices. "Politicians need to create clarity here," says Anna Werner.
Systems services of batteries to the electricity system also important
It is clear in the law that a battery needs to store self-generated electricity to be eligible for the green deduction, but in addition, a battery can also contribute more benefits to the electricity system. Neither the legislation nor the preparatory work expresses the legislator's intention to limit the benefits a battery can provide. The system services that batteries can provide to the electricity network are important to provide a higher degree of utilization in the electricity network.
„In addition, this is of course a blow to the small house owners who, despite the recession, want to support the electricity grid and thereby the entire green transition. We would rather see a gradual and planned reduction in the deduction than a restriction on the use of batteries that are so valuable to society," adds Anna Werner.
Also interesting: Svensk Solenergi: 1,000 certified PV installers
Given this new position from the Swedish Tax Agency, Svensk Solenergi has asked Finance Minister Elisabeth Svantesson for a meeting. The Director General of the Swedish Tax Agency, Katrin Westling Palm, has also been asked for a meeting.
Claims from Svensk Solenergi
- The Swedish Tax Agency's new interpretation of the legislation is clearly incorrect.
- The new interpretation will lead to unhealthy competition if some small house owners and installers choose to follow it while others continue to sell battery installations with green deductions.
- Energy storage that, in addition to increasing self-consumption, is used to support the Swedish electricity system in various ways should obviously be eligible for a green tax reduction.
- Energy storage is an extremely important part of the energy system of the future. Swedish batteries will now not be used in the best possible way. This is a poor utilization of the resources of small house owners and the state because the full potential of the batteries will not be utilized. Instead, more expensive investments will be needed to expand the electricity grid.
- All batteries sold on the Swedish market are equipped with control functions. This means that virtually no battery meets the requirements for the deduction if the Swedish Tax Agency maintains its strange new interpretation. (hcn)
