The Swedish Solar Stroll: A Dissection of the Market in the First Half of 2024

Sweden's solar industry continues to evolve, though at a slower pace in 2024. According to Svensk Solenergi, the nation established an additional 460 MW of solar infrastructure within the first half of the year. This marks a notable decrease from 2023's remarkable engagement of 1.6 GW of photovoltaic (PV) power. By July 2024, Sweden had connected 27,500 new solar installations, slightly surpassing the 26,600 projects from the same period in 2023 but falling well short of 2022's 66,000 installations.

Market Challenges and the Impact of 2023’s Momentum

The slowdown in 2024 was anticipated, with Svensk Solenergi attributing 2023’s boom to high electricity prices and global uncertainty. However, the legal uncertainties surrounding green tax exemptions for battery storage, coupled with lower electricity costs, contributed to a dip in solar activity this year.

Svensk Solenergi’s CEO, Anna Werner, pointed out that despite this year's slow start, installations in 2024 still outpaced 2022 and doubled those of 2021. She emphasized that the temporary uncertainty regarding the green deduction had a dampening effect on installations.

Growth in Residential Installations and the Reinstatement of Green Tax Incentives

Residential solar installations under 20 kW accounted for an additional 260 MW capacity by July. Notably, in June 2024, the Swedish Tax Agency reinstated green tax incentives for battery storage in solar installations, which is expected to rejuvenate the residential market. Werner projected a strong rebound for the remainder of the year, stating that homeowners would no longer feel hesitant about installing solar due to uncertainties around tax incentives.

Medium-Sized Solar Projects and Commercial Investment

Sweden's solar sector also saw a significant rise in medium-sized solar projects (20 kW to 1,000 kW), contributing an additional 190 MW in power connections. This represents an impressive 75% growth compared to the same period in the previous year. Werner highlighted that continued investments from commercial entities are a testament to the long-term viability of solar power as a sound investment.

Notable Commercial Solar Projects in 2024

One of the standout developments in 2024 was the initiation of a 14 MW rooftop solar project on Sweden’s largest depository. This project, the largest rooftop solar initiative in the Nordics, further cements Sweden's position as a leader in solar energy innovation and infrastructure.