The Netherlands 107
large- scale solar parks could double this capacity. Large- scale projects have thus
far been scarce in the Netherlands, which has been largely due to the fact that
revenues have long been insufficient to cover the costs. Moreover, in a densely
populated country such as the Netherlands, space is limited so that opportunity
costs are relatively high (see also elsewhere in this chapter when discussing specific risks). For these reasons, according to the chair of Holland Solar (a solar
PV sector organisation) in an interview, stakeholders such as municipalities,
railway infrastructure management, and the Ministry of Infrastructure and
Water Management have long taken a re- active position, while they have only
recently become pro- active (Cobouw, 2018).
Since 2017, the option of large- scale solar parks has become eligible for
exploitation support under the Dutch sustainable energy subsidy scheme
(SDE+).
2
Projects granted this subsidy become financially viable, which takes
away an important financial barrier to large- scale solar expansion. In 2017, over
half of the SDE+ budget of €6 billion was allocated to solar parks (Van den
Eerenbeemt, 2018). With the adoption of large- scale ground- mounted projects,
the expansion of solar PV could go faster than rooftop solar PV due to economies of scale.
Next to technical and economic potential (supported by incentive schemes),
the scale and pace of solar PV expansion also depends on a range of other
factors. These include: the policy mix for creating an enabling environment for
solar PV; opportunity costs when land that is used for solar parks can no longer
be used for other (e.g. agricultural) purposes; inefficiencies in the market value
chain; and whether energy, legal, financial, and technical services are sufficiently capable of supporting scaling up solar PV.
The scope for Dutch energy and climate policies is set by EU directives such
as the Renewable Energy Directive, the Energy Performance of Buildings Directive, and the Electricity Market Directive. Examples of policy instruments
derived from these, with direct relevance for solar PV, are: net metering,
enabling households and small businesses
3
to feed surplus solar electricity into
the grid; the SDE+ subsidy scheme; energy investment tax exemptions, enabling
an investor in clean energy technology to deduct investment costs from income
before taxes; and the postal code regulation, enabling consumers to invest in
nearby solar parks and receive tax rebates.
In particular, the net- metering instrument has turned out to be a strong stimulus for rooftop solar PV investments by households and small businesses.
Households that produce solar- based electricity are exempted from energy
charges and are paid by the grid operator when they deliver surplus electricity to
the grid. With these financial benefits, return on investment for solar PV easily
surpassed interest rates on bank accounts. As explained above, the SDE+
opening for large- scale solar PV has generated a strong growth in planned solar
parks. Since the eligibility of solar parks under SDE+, the number of completed
parks has grown from 2 MW p in 2014, to 15 MW p in 2015, 43 MW p in 2016 and
114 MW p in 2017. Many more projects are in preparation: as of May 2018,
94.5% of all planned solar parks (including those that have been approved for
large- scale solar parks could double this capacity. Large- scale projects have thus
far been scarce in the Netherlands, which has been largely due to the fact that
revenues have long been insufficient to cover the costs. Moreover, in a densely
populated country such as the Netherlands, space is limited so that opportunity
costs are relatively high (see also elsewhere in this chapter when discussing specific risks). For these reasons, according to the chair of Holland Solar (a solar
PV sector organisation) in an interview, stakeholders such as municipalities,
railway infrastructure management, and the Ministry of Infrastructure and
Water Management have long taken a re- active position, while they have only
recently become pro- active (Cobouw, 2018).
Since 2017, the option of large- scale solar parks has become eligible for
exploitation support under the Dutch sustainable energy subsidy scheme
(SDE+).
2
Projects granted this subsidy become financially viable, which takes
away an important financial barrier to large- scale solar expansion. In 2017, over
half of the SDE+ budget of €6 billion was allocated to solar parks (Van den
Eerenbeemt, 2018). With the adoption of large- scale ground- mounted projects,
the expansion of solar PV could go faster than rooftop solar PV due to economies of scale.
Next to technical and economic potential (supported by incentive schemes),
the scale and pace of solar PV expansion also depends on a range of other
factors. These include: the policy mix for creating an enabling environment for
solar PV; opportunity costs when land that is used for solar parks can no longer
be used for other (e.g. agricultural) purposes; inefficiencies in the market value
chain; and whether energy, legal, financial, and technical services are sufficiently capable of supporting scaling up solar PV.
The scope for Dutch energy and climate policies is set by EU directives such
as the Renewable Energy Directive, the Energy Performance of Buildings Directive, and the Electricity Market Directive. Examples of policy instruments
derived from these, with direct relevance for solar PV, are: net metering,
enabling households and small businesses
3
to feed surplus solar electricity into
the grid; the SDE+ subsidy scheme; energy investment tax exemptions, enabling
an investor in clean energy technology to deduct investment costs from income
before taxes; and the postal code regulation, enabling consumers to invest in
nearby solar parks and receive tax rebates.
In particular, the net- metering instrument has turned out to be a strong stimulus for rooftop solar PV investments by households and small businesses.
Households that produce solar- based electricity are exempted from energy
charges and are paid by the grid operator when they deliver surplus electricity to
the grid. With these financial benefits, return on investment for solar PV easily
surpassed interest rates on bank accounts. As explained above, the SDE+
opening for large- scale solar PV has generated a strong growth in planned solar
parks. Since the eligibility of solar parks under SDE+, the number of completed
parks has grown from 2 MW p in 2014, to 15 MW p in 2015, 43 MW p in 2016 and
114 MW p in 2017. Many more projects are in preparation: as of May 2018,
94.5% of all planned solar parks (including those that have been approved for