Of the subsidies that entrepreneurs have applied for solar energy projects since 2017, 40-60% of the subsidy money remained unused because applicants did not execute their project or did not do so on time. This is evident from research by the Netherlands Enterprise Agency (RVO). The research also shows why entrepreneurs do not carry out these projects.
Part of the subsidy remains unused
Of the 39,206 applications for solar energy projects with the Stimulation of Sustainable Energy Production and Climate Transition (SDE++) subsidy since 2017, 20,028 were released in 2021 through 2024. This means that the initiator who applied for the subsidy did not use it. A large part of the awarded subsidy therefore remains unused. This occurs most often with initiators of larger solar energy projects on a roof (solar panel systems with a capacity of more than 1 megawatt peak).
Grid congestion is the main cause
Various initiators report that grid congestion (too little space on the electricity grid) is the main reason they cannot execute their project. Due to grid congestion, they cannot connect their solar panel system to the grid.
Other reasons include:
- The load-bearing capacity of the roof structure proved insufficient for the installation of the solar panel system.
- Financial reasons: all costs that may turn out to be higher and all revenues that may turn out to be lower. An example of this is that there are increasingly more negative electricity prices.
When the supply of electricity exceeds the demand, this surplus of energy leads to negative electricity prices (negative price hours). The increasing number of negative price hours results in less profit for entrepreneurs.
Release does not always mean cancellation
Sometimes an entrepreneur still carries out their solar energy project without subsidy. This can be interesting if they use a large part of the generated electricity themselves or store it in a (local) battery. Therefore, the release of the subsidy does not always mean that the project will not go ahead at all.
Monitoring solar energy projects
It is important to understand why it sometimes fails to execute a solar energy project with a subsidy (on time). This way, we know better what we can do or what is needed to prevent subsidy release in the future. RVO uses the results of this research to monitor solar energy in the Netherlands even better.
This research is a follow-up to an earlier study from 2021 (covering the period 2017-2020). The SDE++ subsidy was called SDE+ until 2020. The release we investigated in the period 2021 through 2024 can concern subsidy applications from both the SDE+ and the SDE++ subsidy. Therefore, we use the abbreviation SDE+(+) in this message.
Want to know more?
- Ministry of Climate and Green Growth