This report presents an analysis of PV market growth and overall policy support measures for adoption of Solar PV generation in Sweden. The study combines all the available data from 1992 to 2014 for all the 4 market segments of solar PV generation plants. The report also tracks developments in policy support measures over this period.

1. Policy Support
Mechanisms for Solar PV
in Sweden
AUMKAR BORGAONKAR

2. PV Market in Sweden
Sectors in Swedish PV Market
• Power households or a village
• No connectivity to utility grid
• Energy storage often installed
• Powers agricultural pumps,
remote communication, etc.
• No connectivity to utility grid
• Power grid-connected
customer
• Can feed into the grid
• Centralized power station
supplying bulk power to
the grid

3. PV Market in Sweden
0
10
20
30
40
50
60
70
80
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sector-wise Cumulative Installed PV Capacity in Sweden (MW-peak)
Grid-connected Centralized Grid-connected Distributed Off-grid Non-domestic Off-grid Domestic

4. PV Market in Sweden
• Almost constant
annual growth
before 2009
• Accelerated
annual growth
from 2009
onwards
• Accelerated
growth during
2006 to 2008
• Reduced
installation in
2009 but more
accelerated
growth since
• Roughly constant
but very low
annual growth
• No installations
before 2009.
• Accelerated but
low (as compared
to Distributed PV
Systems)
increment after
2009
Off-Grid Domestic PV
System
Off-Grid Non-Domestic
PV System
Grid-connected
Distributed PV System
Grid-connected
Centralised PV System
Important Observations about Sector-wise Installed Capacities

5. PV Market in Sweden
0
20
40
60
80
100
120
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
AVERAGE TURNKEY PRICES OF DIFFERENT PV SYSTEMS IN SEK/WP
IN SWEDEN
Off-grid System
(upto 1 kWp)
Off-grid System
(more than 1 kWp)
Grid-connected
(Less than 10 kWp)
Grid-connected
(More than 10 kWp)
Continuous decrease in per unit average turnkey prices of all PV systems after 2008

6. Support Measures and Policies
1. Electricity Certificate Scheme
2. Investment Subsidy Scheme
3. Public Budget for R&D and Market Deployment
4. Other Indirect Measures

7. Electricity Certificate Scheme
Electricity Certificate : Electronic proof provided by
competent authority that 1 MWh of renewable
electricity is produced as per regulations
Quota : A ratio that determines number of certificates
to be cancelled when multiplied with annual electricity
production
Electricity Producers : Renewable energy electricity
producers as defined by regulation
Certificate Purchasers : Parties with assigned quota
obligation to purchase certificates
Electricity Consumers : Electricity end users who
ultimately bare the cost of renewable energy expansion
Open
Certificate
Market
Electricity
Producers
Certificate
Purchasers
Certificate
Purchasers
Electricity
Producers
Electricity
Consumers

8. Electricity Certificate Scheme
0
5
10
15
20
25
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Electricity Certificate Market Scenario
Electricity Certificates Issued Electricity Certificates Cancelled Accumulated Surplus

9. Electricity Certificate Scheme
0
0.05
0.1
0.15
0.2
0.25
0
5
10
15
20
25
30
2003
2004
2005
2006
2007
2008
2009*
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Quota
Renewable
Energy
in
TWh
Quota Obligation and Renewable Energy Scenario
Forecast of New Renewable Electricity (TWh) Actual New Renewable Energy Production (TWh)
Quota before 2010 Update Quota after 2010 Update

10. Electricity Certificate Scheme
Impact of the Scheme →
o Quota obligation fulfilment is almost 100% every year due to heavy penalties
imposed on failure to cancel required number of certificates
o Due to general purpose of the scheme, renewable energy sources with low
investment are benefited more (for example – biomass)
o The solar PV sector has slowly started to extract benefits through this
scheme with only 61 PV plants registered by the end of 2012
o For successful functioning of the scheme, a certain amount of surplus is
required and amount of surplus may affect the benefits from the scheme

11. Investment Subsidy Schemes
❖ PV Investment Subsidy for Public Buildings (May, 2005)
o Total Budget – 100 Million SEK for tax rebates for PV systems
o Project Eligibility – Proprietors of public buildings such as schools, hospitals or churches
o Subsidy Amount – Tax credit of 70% of the investment cost once the installation is live
o Eligible Costs – Cost of material, installation and external project management
o Subsidy Cap – 5 Million SEK per building
Note: In 2006 revision, this was changed to a capital subsidy scheme with 150 million SEK
total budget.

12. Investment Subsidy Schemes
Impact of the Scheme →
o Greatest impact on grid-connected distributed PV market which exhibited an
annual growth rate of nearly 100% each year starting from 2006 to 2008
o Encouragement for investing in PV systems with larger (referred to that time)
PV systems with capacity of 60 to 80 kW
o Growth of Off-grid non-domestic sector remained unaffected since the
scheme only catered to public buildings

13. Investment Subsidy Schemes
❖ State Subsidy for Solar Installations (Regulation No. 2009:689)
2009-2011
Ordinance
2012
Ordinance
2013-2014
Ordinance
2015
Ordinance
Percent
Compensation of
Eligible Cost
55% (60%) 45% 35% 30% (20%)
Subsidy Cap per PV
System (SEK)
2,000,000 1,500,000 1,300,000 1,200,000
Maximum Eligible
Cost (SEK / kW-peak)
75,000 40,000 37,000 37,000
Total Budget (SEK) 222,000,000 60,000,000 210,00,000 50,00,000
Funds Assigned (SEK) 212,000,000 296,500,000 385,600,000 --
o Originally planned till the
end of 2011 but extended
till 2016
o Subsidy for Grid-connected
PV systems and Hybrid PV
– Heating systems
o Frequent Revisions in the
ordinance to follow the PV
market dynamics

14. Investment Subsidy Schemes
Impact of the Scheme →
o Encouragement for investment in grid-connected PV market with more than
200% growth in annual cumulative installed PV capacity
o First grid-connected centralised PV system was implemented in 2009 with
continuous growth in the market segment thereafter
o Subsidy gap created due to delayed approval of State Subsidy hindered the
growth of grid-connected distributed market segment during 2008 to 2009

15. Comparison with Indian Policies
o India has better infrastructure for solar radiation measurement with 51
resource assessment stations established by MNRE
o Lack of dedicated support programs in Sweden such as Jawaharlal Nehru
National Solar Mission in India with targeted installed capacity of 1000 MW
o Lack of indirect tax benefit schemes in Sweden like Accelerated Depreciation
policy in India
o The Renewable Energy Certificate scheme in India is dedicated to renewable
energy sources only the Electricity Certificate Scheme in Sweden

16. THANK YOU!