Connect with us

Hi, what are you looking for?

The Finnish government has decided to shift renewable energy taxation from a focus on installed capacity to taxing actual system production.

Clean Power

Finland Considers Tax Changes To Boost Small-scale Renewable Energy Sector

The Finnish government has decided to shift renewable energy taxation from a focus on installed capacity to taxing actual system production.

Proposed changes to the tax regime may bring significant financial gains for small-scale renewable energy producers in Finland.

Building integrated solar panels Finland

Building integrated solar panels at a housing complex in Helsinki, Finland

Small-scale renewable power producers, including households with rooftop solar photovoltaic systems, in Finland currently pay tax with respect to the installed capacity and irrespective of the annual power generated and consumed on-site.

As per the current tax regime, generators pay a constant tax based on the installed capacity even if there is no actual generation of electricity. The power generation, especially in case of solar power, is heavily dependent on resource availability which can be highly intermittent in a country like Finland. To correct this situation, the Finnish finance ministry has proposed to tax annual production instead of installed capacity.

According to the proposal, 400 MWh of electricity generated every year will be exempt from tax coverage. While the exempted power generation limit may change, these tax changes would likely result in significant increase in uptake of rooftop solar PV power systems among households.

As of 2013, Finland had an installed solar PV power generation capacity of 11.1 MW, with 11 MW in the off-grid sector. The government’s attempt to make small-scale solar power production more attractive proves that there remains significant untapped potential for the rooftop solar power market.

Recently, ABB set up a rooftop solar power system at its Helsinki-based factory. The 181 kW project is the largest rooftop solar power system in all Nordic countries. The project required an investment of about half a million euros and was partly funded by Ministry of Employment and the Economy.

Image credit: Pöllö | CC BY 3.0

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

Mridul currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.


You May Also Like

Clean Transport

ABB is expanding its EV charger manufacturing in the US with a new multi-million dollar facility in Columbia, South Carolina.

Clean Power

Everyone wants to live in a more energy-efficient world. People are constantly trying to find ways to help make our world more “clean,” yet...

Clean Power

How did I get into solar power? In 2015, during my Postdoc in Pretoria, I traveled to Zimbabwe and spent a few weeks there....

Clean Power

There is a threat to clean energy that’s proliferating around the United States. In articles like this one, we’ve covered the story of several...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.