116 Krisztina de Bruyn-Szendrei et al.
demand. ‘Traditional’ energy companies can furthermore support the lowemission energy transition by shifting to more renewable- energy production
themselves, thereby benefiting from their existing customer base and experience
with large- scale projects.
Impact of net metering on the fiscal balance of the Dutch treasury
As explained previously in this chapter, rooftop solar PV panel investments by
households are supported via the policy instrument of net metering. Groundmounted solar parks have become eligible for exploitation support through the
SDE+ subsidy scheme. While net metering has an impact on the government’s
fiscal budget through reduced tax income, subsidy scheme support for solar PV
will lead to higher governmental expenditure.
Due to net metering, the Dutch treasury misses potential tax revenues
because households and businesses with solar PV panels on their rooftop are
exempted from paying energy tax, value- added tax (VAT), and sustainable
energy contribution (ODE) on the self- generated electricity they consume. For
this study, a simplified model exercise has been carried out to calculate this
effect, assuming an accelerated phase out of coal plants by the year 2030.
6
It has
been concluded that, should the net- metering mechanism remain unchanged,
the treasury might lose out by around €500 million in 2023, rising to almost
€1.2 billion by 2030.
However, for a more complete picture, for this study the net financial impact
of net metering on the Dutch treasury has been estimated. After all, economic
activities related to installing solar panels also lead to tax incomes. Assuming
that an average household generates about 3000 kWh of solar electricity per
year and is exempted from energy tax, VAT, and ODE, the government’s
annual tax income amounts to around €1,200 per year (compared to a situation
where the household consumed electricity from the grid and paid taxes on this).
The calculations show that tax losses for the treasury indeed outweigh the gains
in tax income from installation companies (see Figure 7.3).
According to interviewed stakeholders, net metering has been a powerful
incentive for households to invest in rooftop solar panels. Additionally, as some
indicated, the persistently low interest rate has been a stimulus as this made
saving money generally less attractive than investing in solar panels. An
Treasury
Taxes and premiums
from installation company
C440 (once)
Net metering
C445 (per year)
VAT refund
C750 (once)
Gain
Loss
Figure 7.3 Balance of the Dutch treasury for the case of a household with 3000 kWh
solar electricity generation.
demand. ‘Traditional’ energy companies can furthermore support the lowemission energy transition by shifting to more renewable- energy production
themselves, thereby benefiting from their existing customer base and experience
with large- scale projects.
Impact of net metering on the fiscal balance of the Dutch treasury
As explained previously in this chapter, rooftop solar PV panel investments by
households are supported via the policy instrument of net metering. Groundmounted solar parks have become eligible for exploitation support through the
SDE+ subsidy scheme. While net metering has an impact on the government’s
fiscal budget through reduced tax income, subsidy scheme support for solar PV
will lead to higher governmental expenditure.
Due to net metering, the Dutch treasury misses potential tax revenues
because households and businesses with solar PV panels on their rooftop are
exempted from paying energy tax, value- added tax (VAT), and sustainable
energy contribution (ODE) on the self- generated electricity they consume. For
this study, a simplified model exercise has been carried out to calculate this
effect, assuming an accelerated phase out of coal plants by the year 2030.
6
It has
been concluded that, should the net- metering mechanism remain unchanged,
the treasury might lose out by around €500 million in 2023, rising to almost
€1.2 billion by 2030.
However, for a more complete picture, for this study the net financial impact
of net metering on the Dutch treasury has been estimated. After all, economic
activities related to installing solar panels also lead to tax incomes. Assuming
that an average household generates about 3000 kWh of solar electricity per
year and is exempted from energy tax, VAT, and ODE, the government’s
annual tax income amounts to around €1,200 per year (compared to a situation
where the household consumed electricity from the grid and paid taxes on this).
The calculations show that tax losses for the treasury indeed outweigh the gains
in tax income from installation companies (see Figure 7.3).
According to interviewed stakeholders, net metering has been a powerful
incentive for households to invest in rooftop solar panels. Additionally, as some
indicated, the persistently low interest rate has been a stimulus as this made
saving money generally less attractive than investing in solar panels. An
Treasury
Taxes and premiums
from installation company
C440 (once)
Net metering
C445 (per year)
VAT refund
C750 (once)
Gain
Loss
Figure 7.3 Balance of the Dutch treasury for the case of a household with 3000 kWh
solar electricity generation.