- Sweden installed 460 MW of solar power in H1 2024, a significant drop from the 1.6 GW installed in 2023.
- The decrease is due to lower electricity prices and uncertainties over green tax credits, though installations are higher than in 2022 and double those in 2021.
- Medium-sized business installations grew to 190 MW by July 2024, indicating continued commercial interest despite the slowdown.
Sweden installed 460 megawatts (MW) of solar power in the first half of 2024, marking a sharp decline compared to the same period in 2023, according to Svensk Solenergi, the Swedish Solar Industry Association. This drop follows a record-breaking year in 2023 when installations reached 1.6 gigawatts (GW) due to high electricity prices and global uncertainties.
The current downturn is attributed to lower electricity prices and uncertainties around green tax credits for batteries. Despite this decline, solar deployment in Sweden has shown an upward trend over recent years. The number of installations so far in 2024 is higher than in 2022 and twice as much as in 2021.
Anna Werner, CEO of Svensk Solenergi, explained, “The slowdown in the first half of 2024 may seem dramatic compared to 2023. However, if we look at the trend over a few years, we see that the number of installations is higher than in 2022 and much more than in 2021.”
Up to July, Sweden had connected 27,500 solar installations, just under 1,000 more than in the same period in 2022. Of these, small installations by homeowners, those under 20 kW, accounted for 260 MW, a slight decrease from 270 MW in January-July 2022.
Conversely, medium-sized installations by real estate companies and businesses showed substantial growth. These installations added 190 MW by July 2024, up from 110 MW during the same period in 2022. This increase suggests that commercial entities view solar energy as a viable long-term investment.
This year’s overall decline in new installations highlights a complex landscape for Sweden’s solar sector. Lower electricity prices and unresolved issues with green tax incentives have contributed to a slower pace of new installations. However, the resilience shown by the commercial sector indicates ongoing confidence in solar energy’s potential.
In summary, while the first half of 2024 has seen a notable reduction in solar power installations compared to the previous record year, the long-term outlook remains positive. Compared to earlier years, the increased number of installations and the growth in medium-sized commercial projects reflect a continued, if tempered, enthusiasm for solar energy in Sweden.