The market for solar heating installations in Sweden grew rapidly until around 2006. After that, the overall market started to decline, and in 2011, a subsidy towards solar heating systems in the form of an investment grant was removed, which also increased this trend.
The decline, apart from the removal of the subsidy, can be explained by low energy prices and competition with heat pumps but also by the large increase in solar electricity (PV), and in many respects the two markets are competing for the same customers. Most companies that currently sell solar heating systems also sell solar electricity systems.
The latest trend in solar thermal in Sweden is rather related to large-scale solar thermal plants, and a pilot plant of 1 MWth solar thermal plant has received funding from the Swedish Energy Agency. The plant will be connected to the district heating grid in Härnösand and is made up of concentrated solar collectors.
In 2021 the Swedish Energy Agency received an assignment from the Swedish Government to analyze the potential of solar thermal energy in Sweden, as well as how solar thermal energy can contribute to the Swedish national energy and climate targets.
The total installed power of solar thermal in Sweden as of 2016 amounts to 211 MWth of glazed solar collectors, excluding concentrators.
More information regarding Sweden's solar thermal market can be found in the IEA SHC Programme's Solar Heat Worldwide 2020 publication.