Solar panel owners face new payment system from 2027

Photo: Depositphotos.com

As expected, MPs have voted in favour of ending the way in which households with solar panels are paid for the excess electricity they produce and feed back into the grid from January 2027.

Currently households can deduct the volume of electricity they return to the network from their own usage but that, says the government, is costing too much in lost tax revenue.

From 2027, people with solar panels will be paid for the excess electricity they deliver back to the grid, but how much will be up to their their own energy provider. It must be at least 50% of the price of electricity at that moment.

The move was part of the right-wing coalition agreement and included in the government’s tax plan for next year. Left-wing parties and the fundamentalist Christian SGP voted against.

The vote brings clarity for solar panel owners who have been left unsure about what will happen, following a string of changes in policy and votes for and against these changes over several years.

“We can now focus on the future and work towards encouraging people to use more of the electricity that they produce,” said Nold Jaeger, a spokesman for solar power lobby group Holland Solar.

“Research shows that people who use twice as much of their own solar energy earn back the cost of their solar panels twice as quickly. The cabinet must now stimulate people to use their own energy.”

Energy companies have also been introducing fees for solar panel owners, who have to pay fees to return their excess power to the grid. These charges are likely to come down, but will not disappear altogether, consumers lobby group  Consumentenbond said.

“The measures backed by parliament do not sufficiently protect consumers,” the agency said. “Households have no idea if solar panels will remain attractive and that it makes sense to invest in them. We hope the senate will send this legislation back to the lower house to make changes.”

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