When people switch to renewable energy, the balancing scheme is a snag after all. As a result, many installation companies prefer to leave the net-metering scheme behind. The Sustainable Guys are often asked what the situation is with the net-metering system. What exactly does it entail? And what makes it so complex? We would like to give you some more clarity.
Attractive subsidy for solar panels
The net-metering scheme is a form of subsidy that was devised when the Netherlands was unable to comply with the European climate agreement. It makes the purchase of solar panels extra attractive. But there is a downside. People who now become self-sufficient with renewable energy will still have to make an additional investment in a battery supply in the future, should they wish to remain (partially) self-sufficient.
In fact, this scheme ensures that all the energy that the Dutch generate in their homes is subtracted from the energy they have consumed at the end of the year. In this way, households can also use solar energy in the evening or in winter when there is less energy. At the end of the year, the energy supplier (so to speak) lines everything up against each other. In this way, homes can become self-sufficient quite easily.
Phasing out savings scheme step by step
So basically the grid is used as a battery. However, the grid gets overloaded and this is a subsidy that costs the Netherlands money. Therefore, the government wants to quietly phase out the balancing scheme. That bill has now been postponed again to 2024. From that year on, the subsidy will be phased out around 9% each year. This means for consumers that they are now self-sufficient with solar panels, but in the future they will see the energy price rise again. Since the Netherlands is far from the equator, we have much more energy in the summer than in the winter. We should always keep in mind that we have an energy surplus in summer and an energy shortage in winter.
For Dutch consumers, it is wise to take stock towards the future of how much energy they use during the day and in the evening. Suppose total consumption is 5000 kWh per year. 5000 kWh/365 days = 13.7 kWh per day. If half of it is consumed in the evening while there is no solar energy, it means that roughly a 7 kWh battery is needed of about 7000 euros. Consumers can optimize home energy consumption by using as much energy as possible during the day. Dishwasher, dryer, washing machine and you name it. That’s where a piece of smart home living comes in. Then energy consumption in the evening, for example, goes from 7 to 5 kWh and such a battery costs 5000 euros. By then we hope that, like in Belgium now, there will be a 50% subsidy on those batteries. Then a battery will still cost 2,500 euros and it will be affordable for many Dutch people.
Solar panels remain a good investment
Right now it is just a matter of waiting and earning back your solar panel installation as soon as possible with the net-metering scheme. Then, step by step, we can achieve the healthiest possible climate for homes in the future. Actually, the Netherlands is doing this very cleverly, because Belgium is abolishing the net-metering scheme immediately. We are phasing it out slowly, allowing everyone to inform themselves calmly. It is and remains difficult to communicate the balancing system properly, because people have to be almost highly educated to understand it. We are convinced that a large proportion of solar panel owners still do not know exactly what the balancing scheme means. After reading this article, hopefully they will.
When asked whether solar panels remain a good investment for the future, our answer is: Of course! Especially in 2022 and 2023 while the net-metering scheme is still in full force. Moreover, with solar panels you save on your monthly energy bill, your home will only increase in value and you can reclaim VAT. All your money in the bank yields less, right?
In a no-obligation consultation, we explain what you need to consider while purchasing a solar panel system. From the net-metering scheme to the VAT refund and more. Any questions? Please contact us !
