Swedish Solar Energy Insights

In this edition of our newsletter, we share that smart batteries receive green deduction again and you can learn more about growth in the solar energy sector. Do not forget to subscribe!

Successful Svensk Solenergi participation during Almedalen Week

Another Almedalen Week has ended, and Sweden's political elite are heading on vacation. We had many fruitful discussions and meetings during the week.

Our main take-away from this year's Almedalen Week is that electricity production and flexibility are central to all parts of the societal debate.

No industrial sector has failed to mention the issue of energy, and solar power is often highlighted as an obvious part of the solution.

Find our summary on our website.

Smart Batteries Receive Green Tax Deductions Again

The 4th of July the Tax Advisory Committee issued a preliminary decision to a private individual seeking a green tax deduction for a stationary home battery to be used for support services. The decision was positive, aligning with industry standards; batteries used for support services should be eligible for green deductions.

The Swedish Tax Agency published the same day a new position in line with the decision and has changed its stance on the matter.

- "It is pleasing for the green transition that smart batteries can receive green deductions again. Batteries are a crucial part of the future energy system," says Anna Werner, CEO of Svensk Solenergi.

Read our full comment here: Smarta batterier f?r nu gr?nt avdrag igen - Svensk Solenergi

Is this a turnaround we are seeing?

The number of pre-registered solar installations has increased each month during the first five months of 2024.

During May, new finnished solar panel installations were up 15 percent compared to April. Pre-registrations increased by 1.2 percent.

We have been collecting monthly statistics from the three major electricity network companies for a couple of years, using their data to estimate the entire market. They now account for 55 percent of the market, which we will use for our future monthly estimates.

In May, according to these estimates, there were 6,100 solar panel installations. This is 1.2 percent more than in April. This means that pre-registrations have increased for the fifth consecutive month since hitting a low in December, which was the lowest level since 2021.

Our forecast for the entire year is 65,000.

Don't miss our statistics pages! You can find them here.

The European market for solar battery storage increased by 94% in 2023.

The latest analysis from SolarPower Europe shows that in 2023, Europe installed over 17 GWh of new battery energy storage systems (BESS); a 94% increase compared to 2022. This is the third consecutive year that the annual market has doubled.

At the end of 2023, Europe's total operational BESS fleet was approximately 36 GWh. The residential segment accounted for 63% of this capacity, followed by large-scale battery systems (21%) and commercial and industrial systems (9%).

Germany led the market with 34% of the European market share in 2023, followed by Italy (22%) and the United Kingdom (15%).

Although expansion is expected to continue to grow in 2024, forecasts still fall below the estimated 200 GW of battery capacity needed by 2030 to unlock the EU’s solar energy potential. Battery storage faces hurdles across Europe including lack of targeted goals, insufficient market signals, double taxation, and restrictive grid policies for hybrid installations of renewable energy.

Access the European Market Outlook for Battery Storage 2024-2028 here.

Industrial Electricity Demand is Increasing

The Swedish industrial organization SKGS's new survey shows a pressing need for new electricity production in Sweden.

SKGS works with energy issues for the Swedish basic industries and is a collaboration between the industry organizations Skogsindustrierna, IKEM – Innovation and Chemical Industries in Sweden, Svemin, and Jernkontoret.

The SKGS survey indicates that the electricity demand within the industry will increase by 88 TWh by 2035. To meet the industry's needs, an expansion of at least 5 TWh of new electricity production is required each year. In 2023, solar and wind power increased by just over 1 TWh each, while other types of power production decreased from the previous year. SKGS predicts that the electricity surplus in northern Sweden will disappear around 2030 and that the electricity deficit in southern Sweden will triple by 2035.

However, several Swedish industrial initiatives have been postponed, which means that a significant increase in electricity demand is not expected until 2027. The report forecasts that electricity usage within the industry in 2030 will be 66 TWh higher than today, and that the total Swedish electricity consumption at that time will be 210 TWh, which is 50 percent higher than today.

Access the full survey here.