There is no longer an income tax to be paid on the sale of surplus electricity for own consumption

Today, the Riigikogu approved amendments to the electricity market law, which exempt the sale of surplus electricity for own consumption from taxation.

"Today marks the beginning of filing tax returns for 2022, and now all small producers have the assurance that the sale of surplus electricity for own consumption will not incur additional tax obligations," said Minister of Finance Annely Akkermann. The change is retroactively effective from the beginning of 2022.

"Generating electricity from wind or solar power for own consumption initially requires quite a large investment, and this investment cannot be deducted from individuals' income, and in addition, the sale of surplus electricity was also taxed with income tax. This did not promote investments in renewable energy," explained the minister the necessity of changes.

Income from the sale of electricity produced from a renewable energy source with a production capacity of up to 15 kilowatts is tax-exempt. For housing cooperatives, there is a choice between a 15 kW connection point or 8 kW per apartment. This applies to both solar and wind installations."

Source: emta.ee 15.02.2023 | 15:44