The Netherlands’ renewable energy subsidy scheme, SDE++, a key tool in driving the energy transition, receives annual government funding to support businesses investing in sustainable projects such as solar, wind, biomass, and geothermal energy. Recent results for 2024 released by the Netherlands Enterprise Agency (RVO) reflect the current state of the country’s renewable energy transition.
In 2024, a total of 640 sustainable projects were approved. Businesses applied for subsidies exceeding €10.5 billion, with approximately €7 billion approved after review. The annual budget was set at €11.5 billion, meaning €4.5 billion remained unused. Electricity production projects remained the dominant category, with 337 projects approved and subsidies amounting to around €734 million. Among these, rooftop solar projects accounted for 219, making them the primary beneficiaries.
However, compared to 2023, subsidies for electricity production projects were halved. According to the latest data from Enexis, over 9,000 business users are waiting for new or higher-capacity grid connection points, an increase of more than 1,000 from the same period last year. Grid loads in multiple regions are approaching or even exceeding safety limits, with some nodes operating beyond 100% capacity, severely impacting project implementation and the efficient use of funds.
By 2025, the Dutch government will continue its large-scale financial support, with a total of €8 billion in SDE++ subsidies available for businesses this year. The application window will open on October 7 and close on November 6, providing clear timelines for companies interested in developing renewable energy projects.
SDE++ continues to drive the Netherlands’ energy transition. Compared to large centralized power plants, rooftop projects are widely distributed, exert less pressure on the grid, and are more likely to be approved, making them expected to remain the largest beneficiaries. However, to fully leverage policy and funding effectiveness, grid expansion and flexibility enhancements are urgently needed. Although the Dutch government has introduced related plans, challenges remain in approval processes, technical expertise, and community acceptance. Resolving grid bottlenecks is critical to achieving the country’s energy transition goals smoothly.
