Solar Incentives in Denmark 2026: Net Settlement Groups & Surplus Sales
Last updated July 2026
Denmark supports solar through its self-producer framework rather than up-front grants: net settlement (nettoafregning), where your settlement group defines how self-use is offset (new systems default to instant settlement, group 3). Surplus is paid only if you sign an agreement with an electricity trader. Tax and the håndværkerfradrag deduction apply via Skattestyrelsen. Systems register via the netselskab. Confirm current terms officially.
Denmark supports household and business solar mainly through its self-producer (egenproducent) framework rather than up-front purchase grants. The core mechanism is net settlement (nettoafregning), administered by the Danish Energy Agency (Energistyrelsen): electricity you generate and consume yourself is treated differently from electricity you export, and your 'settlement group' (afregningsgruppe) defines how that offset is measured. New self-production installations are placed by default in settlement group 3 (oejebliksafregning / instant settlement), where surplus must be used the moment it is produced or is exported; the older annual net-settlement pool (group 6) and a fixed price supplement (pristillaeg) are legacy schemes closed to new applicants, and the hourly settlement group was phased out in 2026. Surplus you export is only paid for if you sign a production agreement with an electricity trading company (elhandelsselskab); tax on any sales income and the home-improvement labour deduction (haandvaerkerfradrag) are handled by the Danish Tax Agency (Skattestyrelsen). Rates, allowances, thresholds and group rules change frequently, so always confirm current figures with the official Energistyrelsen and Skattestyrelsen sources before relying on them.
Registering your solar system on the grid
Stamdataregister registration and grid connection via the netselskab and Energinet DataHub
Before a solar system can legally export power or be paid for surplus, it must be registered and connected. Your authorised electrician (elinstallatoer) reports the installation to your local grid company (netselskab), which registers it in the Danish Energy Agency's master data register (stamdataregister) and in the national DataHub, activates the export meter, and issues an 18-digit GSRN identification number. The system is placed in a settlement group (by default group 3, instant settlement). You then separately arrange a production agreement with an electricity trading company (elhandelsselskab / produktionselleverandoer) to be paid for exported surplus; without such an agreement, surplus flows to the collective grid without payment. The netselskab, not the homeowner, performs the master-data registration.
Nettoafregning settlement groups (afregningsgrupper)
Administered by: Energistyrelsen (Danish Energy Agency)
The framework that defines how a self-producer's own consumption is offset against generation. The settlement group determines the time window in which self-generated electricity can be used before it counts as export: instant settlement (group 3) requires simultaneous production and consumption, while annual net settlement (group 6) offset production against consumption over a yearly period. New installations are registered in group 3 by default; the annual group is closed to new entrants and an hourly group was discontinued in 2026, so the current group structure should be verified before relying on it.
Who it is for: Self-producers (households and businesses) who generate electricity for their own consumption and are grid-connected via a netselskab.
Pristillaeg (price supplement) and surplus settlement
Administered by: Energistyrelsen (Danish Energy Agency)
A fixed settlement supplement paid by the Danish Energy Agency on surplus production for installations approved under earlier rounds of the Renewable Energy Act (VE-loven). The agency pays out based on production data reported through DataHub, topping up or reconciling against the market price. This is a legacy support scheme: it is no longer open to new installations, and continued high market prices can produce a negative supplement to be repaid.
Who it is for: Only self-producers with installations previously approved for a price supplement under the older VE-loven rules; not available to new systems.
Flexafregning for annual net-settled self-producers
Administered by: Energistyrelsen (Danish Energy Agency)
The transition of annual net-settled self-producers (group 6) to flexible, hourly buying and selling of all electricity delivered to or drawn from the collective grid, while the electricity-tax and public-tariff reconciliation continues to be calculated on an annual basis. It changes how imports and exports are priced and metered without removing the underlying annual net-settlement entitlement.
Who it is for: Existing annual net-settled (group 6) self-producers with solar or household wind installations.
Tax and VAT treatment of private solar (skematisk metode)
Administered by: Skattestyrelsen (Danish Tax Agency)
For private households, electricity produced and consumed by the household is tax-free, while income from selling surplus is taxed under a simplified schematic method with a per-owner basic allowance; there is no depreciation on the system itself, though loan interest remains deductible. On VAT (moms), a private household solar system is not treated as economic activity, so private owners cannot register for VAT or reclaim purchase VAT. Commercial-scale or income-oriented systems are assessed differently.
Who it is for: Private homeowners with solar generating for their own household; commercial operators are taxed under separate business rules.
Haandvaerkerfradrag (home-improvement labour deduction)
Administered by: Skattestyrelsen (Danish Tax Agency)
A personal income-tax deduction for the labour cost (not materials) of qualifying green home-improvement work on your own home, which includes installing, repairing or replacing solar panels. It is claimed per person through the tax return / TastSelv. A key restriction is that you cannot use the deduction for a solar installation if you also sell electricity from it, because that makes it commercial. The scheme was reinstated after an earlier abolition and runs on a time-limited basis, so eligibility and coverage should be confirmed.
Who it is for: Private homeowners paying for qualifying installation labour who do not sell electricity from the system.
Before you rely on any figure — check the official source
Solar incentive rates, tariff levels, budgets, eligibility thresholds and deadlines in Denmark change frequently, and several schemes run on limited budgets or fixed application windows. This guide describes each programme at the mechanism level and links to the official administering body so you can confirm the current terms for your own project and year. Never commit to a purchase on the strength of a headline number from a third-party site — including this one.
Once you know which schemes apply, the practical next step is a qualified local installer who can size the system, handle the grid registration and apply for the incentives that fit. Browse solar companies in Denmark → on Solar Directory.
Official sources
Every programme fact on this page is drawn from official government and agency sources. Confirm the current terms directly:
- https://ens.dk/tilskud-og-puljer/solceller-og-husstandsvindmoeller/opsaetning-af-et-nyt-ve-anlaeg
- https://ens.dk/tilskud-og-puljer/faq-om-stoette-til-vedvarende-energi
- https://ens.dk/tilskud-og-puljer/afregning-sol-og-vind
- https://ens.dk/tilskud-og-puljer/flexafregning-aarsnettoafregnede-egenproducenter
- https://skat.dk/borger/bolig-og-ejendomme/solceller-og-andre-vedvarende-energianlaeg/skat-af-solceller-og-andre-vedvarende-energianlaeg
- https://skat.dk/en-us/individuals/deductions-and-allowances/home-improvement-and-household-services/home-improvement-services
Solar support programmes in Denmark at a glance
| Programme | What it does | Official source |
|---|---|---|
| Nettoafregning settlement groups (afregningsgrupper) | Net settlement scheme | Official page → |
| Pristillaeg (price supplement) and surplus settlement | Feed-in price supplement | Official page → |
| Flexafregning for annual net-settled self-producers | Hourly billing transition | Official page → |
| Tax and VAT treatment of private solar (skematisk metode) | Income tax and VAT rules | Official page → |
| Haandvaerkerfradrag (home-improvement labour deduction) | Green renovation tax deduction | Official page → |
Frequently Asked Questions
Do I have to register my solar panels before I can sell surplus electricity?
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Yes. Your authorised electrician reports the system to your local grid company (netselskab), which registers it in the Danish Energy Agency's master data register (stamdataregister) and the national DataHub and issues you a GSRN number. Only then can you sign a production agreement with an electricity trading company (elhandelsselskab) to be paid for exported surplus. Without such an agreement, any surplus flows to the collective grid without payment.
Which settlement group will a new solar installation be placed in?
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New self-production installations are placed by default in settlement group 3 (oejebliksafregning / instant settlement), where self-generated electricity must be used at the moment it is produced or is treated as export. The older annual net-settlement group (group 6) is closed to new entrants, and an hourly settlement group was discontinued in 2026. Because these groups and their rules change, confirm the current group structure with Energistyrelsen before deciding.
Is the money I earn from selling surplus solar electricity taxed?
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Electricity you produce and use in your own household is tax-free. Income from selling surplus is handled by the Danish Tax Agency (Skattestyrelsen) under a simplified schematic method with a per-owner basic allowance, and private household systems cannot register for VAT to reclaim purchase VAT. The exact allowances and calculation change, so verify the current figures on skat.dk before filing.
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