To achieve the climate transition and strengthen Sweden’s and Europe’s strategic independence, society needs both to reduce its reliance on energy from fossil fuels and to increase the production of fossil-free energy.
Compensation for residents nearby and the local society
A wind farm changes the appearance of the landscape. In the surrounding area, it may also generate noise and cast shadows. To ensure that those affected share in the value created by wind power, there is now a statutory wind power compensation scheme.
What does the law say?
Under Swedish law, owners of residential buildings located within a certain distance from a wind turbine may be entitled to a tax-free financial compensation when a new wind power facility is put into operation. The legislation applies to wind power facilities whose environmental permit became legally binding after 30 June 2026, or which received municipal approval after 6 November 2025.
The compensation is paid by the wind farm operator, for example SCA, and is calculated based on:
- the wind turbine’s revenue from electricity production
- the distance between the residential building and the wind turbine
- the number of wind turbines within the same wind farm
The right to compensation applies to residential buildings that meet the legal requirements and that existed, or were under construction, when the permitting process for the wind power facility began.
For projects that SCA has acquired at a later stage of development, such as Skogberget and Fasikan, previously agreed compensation arrangements continue to apply. These projects are therefore not fully covered by the statutory compensation model.
Act on revenue sharing from wind power facilities (In Swedish)
How much is the compensation?
The compensation is calculated per wind turbine according to the following distance-based model:
- up to 5 times the turbine’s total height: 0.25% of the turbine’s annual revenue
- 5–6 times the total height: 0.20%
- 6–7 times the total height: 0.15%
- 7–8 times the total height: 0.10%
- 8–9 times the total height: 0.05%
In general, the closer the residential building is to a wind turbine, the higher the compensation.
If several wind turbines are located within the compensation area, compensation is calculated based on the two turbines that generate the highest amount.
The total compensation to nearby residents may not exceed two percent of the wind farm’s annual revenue. If the calculated compensation exceeds this limit, the available amount is distributed proportionally among eligible property owners.
How is the compensation paid out?
To receive compensation, property owners must submit a claim every year.
Payment is made no later than 1 July of the year following the calendar year to which the compensation relates. This applies for the entire operational lifetime of the wind power facility.
The operator reports how the compensation has been calculated.
For us, it is important that the local communities contributing to the transition also benefit from the value created by wind power. The new legislation provides a clear and long-term model for compensation to nearby residents, while SCA continues to contribute to local development through its community fund (bygdepeng)
Compensation to municipalities
Municipalities affected by wind power receive compensation through a state-run system. This compensation is not handled by SCA or other wind farm operators.
SCA’s contribution to local communities
In addition to the statutory requirements, SCA allocates 0.5 percent of its electricity sales revenue to a local community fund.
The purpose of the fund is to strengthen local communities and it can be applied for by, for example, associations, village groups, and schools for projects within:
- nature and culture
- leisure and sports
- tourism
- local infrastructure
More questions and answers about compensation
Yes. After the wind turbines have been put into operation, you must submit an annual claim to the wind farm operator in order to receive compensation.
You may be eligible if your residence is located within nine times the height of a wind turbine in the wind farm and meets the other requirements of the legislation.
No. The compensation depends on the distance to the turbine and how much electricity is produced.
No later than 1 July of the year following the electricity production.
No. The wind power compensation is statutory and is paid to nearby residents. The community fund is a voluntary contribution from SCA to local communities.
The wind farm operator must, no later than when the wind power facility is put into operation, inform property owners who may be entitled to wind power compensation. The information must be provided through a public notice in a local newspaper or by other appropriate means, and must include details about the right to compensation and how to submit a compensation claim.
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