The solar energy generation capacity in the Netherlands increased again in 2024, by 18% compared to the previous year. This is shown by the Solar PV Monitor from the Netherlands Enterprise Agency (RVO). However, the growth is less than in previous years. This is due to our full electricity grid and because the yields are likely lower and more uncertain.
Solar energy growth slows down
Solar energy now contributes about one-fifth to the total electricity production. However, the generation capacity grew less in 2024 than in previous years. In 2022 and 2023, the growth was still 4.7 gigawatt peak (GWp) and 4.8 GWp. In 2024, the capacity grew by 4.3 GWp.
This decrease in growth was especially seen in small solar energy systems, such as solar panels on residential roofs. Additionally, more and more projects that could potentially receive SDE++ subsidies are not proceeding. These involve large projects, such as solar panels on commercial roofs.
Investing in solar energy less attractive for small solar energy projects
Energy prices have been declining since 2023, making it less profitable to invest in solar energy.
Furthermore, the netting scheme will stop from January 1, 2027. Owners of solar panels will no longer be able to offset their self-generated electricity against their consumption. They will receive compensation for returning generated electricity to their energy supplier. This will make it take longer to recoup the investment in solar panels.
Yields decline for large solar energy projects
For companies with large solar energy projects, yields are declining because energy prices were negative more often at the time of generation. In 2024, this was 458 hours, compared to 316 hours in 2023. Throughout 2024, solar energy installations that temporarily shut down during all moments with negative prices yielded 20% less.
Moreover, it is becoming increasingly difficult to connect new systems to the electricity grid due to the full electricity grid (grid congestion). This causes delays or changes in plans for solar energy generation.
Solutions for the future
More and more existing and new large solar energy systems are being equipped with devices that shut down the system remotely. This reduces revenue loss when electricity prices are negative. By the end of 2024, about 60% of large solar energy systems had this capability.
Solar energy systems are increasingly aligning with available space and energy needs in a specific location. For example, solar panels on parking lots use the generated energy directly to charge electric cars. Additionally, it is possible to store excess generated energy in a battery and use it when the sun is not shining.
The generated electricity is increasingly for self-use and is less dependent on the full electricity grid. This way, solar panels remain a saving on the energy bill.
- Ministry of Climate and Green Growth
