Police are conducting an investigation at the site of the explosion in a residential area of Varberg in Skarholmen, south of Stockholm, according to a Stockholm police statement.
Police stated that they are considering the blast to be an "isolated incident"; at present, no larger threat has been identified.
According to the Radio Sverige media outlet, the explosion occurred at 3:03 p.m. (14:03 GMT).
Earlier, Swedish media reported that the blast might have occurred by the detonation of an explosive device.
According to unconfirmed information, the man who triggered the bomb is likely to have killed himself in the explosion.