Global Solar PV Market Report

An important instrument to promote renewable development is the Stimulering Duurzame Energietransitie (SDE++) support scheme that uses competitive auctions to award operational subsidies to new renewable energy projects. SDE++ was implemented after the expansion of SDE+ in 2020, which was designed for large-scale renewable technologies, but did not cover other technologies such as carbon capture and storage. During the period 2011 to 2020, the precursor SDE+ allocated up to €60 billion in subsidies, which are paid over 15 years based on renewable energy production. For the 2022 SDE++ program, the budget was €13 billion, the highest budget for the program to date. Among the largest projects funded by SDE subsidies in 2022 is a 136MW solar farm in Haarlemmermeer, which is 100% locally owned. The project is expected to be finished in 2023 and was developed in co- creation with local citizens.

This SDE++ tendering scheme is the primary driver of the commercial and utility-scale solar energy markets in the Netherlands. Under the scheme solar energy competes with other renewable energy projects and CO2 reducing technologies such as CCS. A total of 2.3GW in solar projects applied for subsidy in the 2022 round, of which 1GW were ground-mounted, 38MW were floating, and 1.3GW were large rooftop installations.

Net metering is another important mechanism for solar growth in the country, which is key to the residential solar market. The Netherlands’ net metering system, set up in 2004, allows households with solar panels to offset their green electricity production against their consumption. With the support policy, more than 2 million homes are currently generating renewable energy. However, a proposal by the Dutch solar sector to gradually phase out net-metering with 9% reductions every year until 2031 is awaiting a vote in parliament. This degressive approach is based on a seven-year payback period for the prosumer, assuming 30% self- consumption and optimal system conditions.

Over the past few years, there have been growing concerns from the insurance sector related to rooftop solar installation causing fires, which had a negative impact on the rooftop solar market. Consequently, the Dutch government conducted an independent study in November 2021 that proved there were limited fire risks. Additionally, a code of conduct was developed, which has been in place for a year now, resulting in higher insurability, thereby enhancing commercial solar installations.

Netherlands is one of Europe’s leading markets for corporate power purchase agreements. Over the period 2014-2022, BNEF has tracked 2,381MW of corporate renewable energy PPAs in the Netherlands. Local companies with high electricity demand and sustainability objectives also contribute to this success.

With available farmland being limited, industry operators have been experimenting with innovative solutions to find space for solar farms. This includes exploring ways to make solar plants work alongside agricultural production. One such project involves growing strawberries and raspberries below a solar panel roof, replacing the plastic cover traditionally used by farmers. In an innovative attempt to utilize land, Dutch solar developer TPSolar installed 23,000 solar panels on a landfill site in Armhoede capable of producing 8.9MW of green electricity.

SCE (Subsidy Cooperative Energy Production 2021) has been successfully supporting the development of cooperative projects among organized citizens and will continue to do so. Additional methods of participation, financial or otherwise, have also been implemented and will be included in the solar sector’s Code of Conduct. This ensures a level playing field for commercial project developers and residents.

In addition, floating solar deployments and technologies have made substantial progress in the country, thanks to the country’s abundant water resources, covering approximately 20% of its surface area. Several solar power developers have taken advantage of this by building farms on artificial lakes. Dutch company GroenLeven has installed more than 500,000 solar panels on Dutch waters. Furthermore, the Netherlands has deployed an innovative floating solar farm that tracks the sun’s path through the sky, maximizing energy production. The farm was developed by the Portuguese company Solaris Float that can be installed on lakes, reservoirs and in coastal areas, potentially solving many issues plaguing solar technology.

There has been a growing appetite for large-scale battery energy storage systems in the country, primarily to tackle the shortages of renewable capacity on the grid caused by grid constraints and procedural delays. The storage requirement is estimated to be 10GW by 2030. Naturally, movement in the battery storage market has picked up over the last 12 months. The largest operational system in the country was brought online in October last year by GIGA Buffalo, followed in quick succession by the largest under- construction projects being launched by Rolls-Royce and Alfen in November 2022 and February 2023, respectively.