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Dutch Senate Votes to Keep Solar Panel Subsidies: Impact on Consumers and Energy Companies

ANP Solar panels are installed on a roof

NOS News•today, 12:34•Changed today, 15:43

The netting arrangement will remain in place for the time being. The Senate has put an end to the plan of outgoing climate minister Jetten to phase out this subsidy from 2025. Owners of solar panels can therefore continue to offset the power they supply against the power they purchase from the electricity grid.

This afternoon, a majority of senators voted against Jetten’s bill. The two largest factions in the Senate, BBB and GroenLinks-PvdA, believe that the incentive scheme should remain. According to GroenLinks-PvdA, solar panels are now becoming accessible to people with a low income, and then you should not abolish the subsidy.

BBB sees the phasing out as a “pure tax measure” by the cabinet to raise 2.8 billion euros in the coming years. The party believes that before netting is abolished, the congestion on the network must first be resolved.

PVV, SP, Party for the Animals and JA21 also voted against. A majority of 43 of the 75 senators rejected the proposal.

The House of Representatives previously approved the change in the law. Jetten and the cabinet wanted to get rid of the subsidy, because solar panels are now so cheap that they are a good investment even without government support. The scheme also costs the treasury hundreds of millions a year in lost tax revenue and people without panels partly pay the bill.

Last week, during the debate, Jetten made a final appeal to the Senate to agree to his plan. He called it “irresponsible” to maintain the netting scheme, because of the costs to the treasury.

To change the minds of senators, especially GroenLinks-PvdA, he made a commitment to help housing associations to accelerate the rollout of panels on rental homes. That promise was not enough for the group.

Jetten: will hurt a lot of people

Jetten reacts disappointed to the rejection of his plans. “This may seem sympathetic from the Senate, but ultimately it will disadvantage many people.” According to the minister, people without solar panels will pay for the income that energy companies miss. That could amount to a few tens of euros per month, he estimates.

He also expects that people with solar panels will pay a feed-in fee more often at times when energy companies have little need for power. And according to Jetten, maintaining the subsidy creates a new financial problem for the new cabinet.

Reactions: from ‘happy’ to ‘missed opportunity’

The Consumers’ Association is pleased with the decision of the Senate. According to the association, if the scheme had been abolished, it would have “represented a brake on the energy transition.” People must first have “a solid alternative”, so that they can be sure that purchasing solar panels remains profitable.

The grid operators and energy companies are less enthusiastic. Netbeheer Nederland speaks of “a missed opportunity. By keeping the arrangement as it is now, the Senate accepts that the electricity grids are unnecessarily overloaded when the sun shines.”

Energy company Vattenfall points out once again that supplying energy at those times is costing them more and more money. The energy companies would much rather see people encouraged to use electricity themselves when their panels generate a lot of power.

2024-02-13 14:43:56
#Senate #maintains #subsidies #solar #power #time

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