Norwegian energy minister Tord Lien and his Swedish counterpart, Ibrahim Baylan, have agreed to increase the common goal by 2TWh and produce 28.4TWh by 2020.
The extra production will be the responsibility of Sweden, with Norway's contribution to the target remaining at 13.2TWh.
As a way of further evening up the playing field, Sweden will also end a tax exemption for Swedish companies that install their own new capacity.
Lien said: "This meets Sweden's desire for expansion of the electricity certificate scheme and the development of renewable energy.
"It will provide more equal conditions for Norwegian and Swedish builders," he added.
The neighbouring Scandinavian countries set up a shared renewable energy certificate scheme three years ago. Under the deal Sweden and Norway agreed split subsidy costs from these renewable projects, regardless of which side of the border they were located on.
In October, the CEO of Norway's wind energy association, NORWEA, Oyvind Isachsen, said the difference in tax and depreciation rules have make Sweden a more attractive investment.
Last month, the Norwegian government announced plans to change depreciation rules to bring them inline with its neighbour. At the time, NORWEA adviser Lars Granlund said the new rules would increase the return to developers from Norwegian wind projects by NOK 0.03/kWh (€0.003/kWh).