The Ministry of Finance has proposed new tax rules in the 2025 national budget to sell surplus electricity from private homes. The tax-free income limit is NOK 15,000, and a standard deduction of 15% is applied to income exceeding this limit.
The primary purpose of the production facility must be to supply electricity to the owner's residence or holiday home for the tax exemptions to apply. The proposal will simplify the reporting obligations for individuals who sell self-produced electricity, as power suppliers will be responsible for reporting the income. The new rules will take effect from the 2024 income year, allowing homeowners to benefit from the tax exemption starting this year. Let’s take a closer look at these changes.
Tax-Free Threshold for the Sale of Surplus Electricity
In the proposal, the Ministry of Finance expresses that the general principle is that income from the sale of surplus electricity should be taxed according to ordinary rules. However, a tax-free income limit of NOK 15,000 and a 15% standard deduction for income exceeding this threshold are proposed. A condition for the tax exemptions to apply is that the primary purpose of the production facility must be to supply electricity to the owner's residence or holiday home.
The proposal means that most homeowners will avoid taxation on income from the sale of surplus electricity. This applies to individuals with renewable energy production facilities, such as solar panels, connected to their home or holiday home. The proposal also simplifies the reporting obligations for individuals who sell self-produced electricity.
Simplified Reporting Obligation
Under the proposal, power suppliers will be responsible for reporting income information related to the sale of surplus electricity. This will reduce the tax burden, especially for individuals who exceed the tax-free threshold or are not covered by the exemption, such as those who own properties they do not live in.
Commencement
The new tax rules are proposed to take effect from the 2024 income year, ensuring that homeowners can already benefit from the tax exemption in 2024. The reporting obligation for power suppliers will take effect from the 2025 income year.
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