13 Feb 2024 at 12:28
The netting scheme for solar panels will not be phased out in the coming years. The GroenLinks-PvdA senate faction, which has a decisive vote, does not support the outgoing cabinet’s plan.
The netting scheme has been in place since 2004. It is intended to make the investment in solar panels more attractive. People with solar panels on their roof can completely offset the energy they generate themselves against their consumption. No tax has to be paid on that part.
Due to the growing popularity of the netting scheme, the government is losing more and more tax revenue. This amounts to approximately 2.8 billion euros until 2031 and then to more than 700 million euros per year.
The decision to abolish the scheme was already taken in 2017, but has since been postponed several times. So also now.
Cabinet believes the scheme is unfair and no longer necessary
The cabinet believes that the scheme is no longer necessary. People can recoup their investment faster and faster. Moreover, one in three owner-occupied homes now has solar panels. This is far from being the case in the rental sector.
The government also believes that the netting scheme is becoming increasingly unfair for people without solar panels. This is because energy suppliers incur higher costs as a result of the scheme. They pass this on to all their customers.
A year ago, the House of Representatives approved the bill to phase out the scheme. VVD, D66, CDA, ChristenUnie, FVD, SGP and Volt supported the plan. The GroenLinks and PvdA factions were now opposed, just like the senators.
Guarantees regarding investments in solar panels
There were concerns in the Senate about the payback period of the investment in solar panels. Outgoing Minister Rob Jetten (Climate and Energy) had given the guarantee that this would always remain for seven to nine years. There would also be evaluation moments to see whether the phase-out path is still correct. If not, action could be taken.
GL-PvdA was also very concerned about the rental sector. Jetten had promised in the debate that he is open to working with the Aedes trade association to see how much extra money is needed to encourage the installation of more solar panels.
The commitments proved not to be enough to win the support of the left-wing faction.
Regulation would not disappear overnight
The scheme would not be abolished all at once. In 2025, people with solar panels would still be able to net 64 percent of the electricity they supply back, that was the plan. This would then become less and less, until in 2031 it would no longer be possible to offset at all.
In 2025, something would replace the scheme: a compensation for all electricity that you supply back to the grid. This would amount to at least 80 percent of the ‘basic’ electricity rate that you normally pay.
The tax advantage would disappear: people would pay energy tax on all the electricity they consume from the electricity grid. Only the electricity they would get directly from their own solar panels would remain free and tax-free.
2024-02-13 11:28:31
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