A Dutch renewable energy subsidy scheme saw the number of solar applications fall to 501 this year from 1,130 in 2023, as grid congestion and negative electricity prices reduced the attractiveness of investments.
Netherlands Enterprise Agency (RVO), the Dutch state agency that manages the Stimulation of Sustainable Energy Production and Climate Transition (SDE++), says that the subsidy scheme was signed this year.
The program, aimed at companies and non-profit organizations that generate sustainable energy on a large scale, was open from September 10 to October 10 and received 761 registrations. In total, companies have applied for 9.8 billion euros in subsidies from the 11.5 billion euro pot.
According to the agency, entrepreneurs have applied for 501 solar subsidies under the scheme this year, less than half of the 1,130 they received in 2023. The amount requested for solar panels fell from more than €1.3 billion in 2023 to €319 million this year.
According to one letter to the Dutch Parliament on the progress of the scheme: this year’s applications for solar energy total 1,411 MW of ground solar energy, 474 MW of rooftop solar energy and 138 MW of floating solar energy.
RVO says that the decrease in the number of solar energy applications is due to the long waiting times that some entrepreneurs have for connections to the electricity grid, with some parts of the Netherlands suffering from grid congestion.
It added that negative electricity prices are becoming more common, making investments in solar panels less attractive.
Because companies applied for less money than was available for solar installations, all applications will receive a subsidy as long as the RVO approves the application. The agency said it is currently reviewing all applications and will send decision letters in the coming weeks.
While solar applications fell, RVO says some technologies, including green gas and hydrogen, were oversubscribed, with companies applying for more than the €1 billion available for each of these technologies.
The Netherlands added 1.76 GW of solar capacity in the first half of 2024, with 148,166 new PV projects. At the end of June, the country’s total installed PV capacity stood at 26.06 GW.
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