The solar PV market in the Netherlands is growing at a sustainable pace after experiencing rapid expansion over the last few years as the Dutch government takes proactive steps to manage grid capacity and circular economy practices, says a new report from the International Energy Agency Photovoltaic Power Systems Programme (IEA PVPS). This market added 4.4 GW DC of new PV capacity in 2023, with 2.3 GW DC coming from the decentralized segment of less than 15 kW capacity and 2.1 GW DC from the centralized projects of more than 15 kW capacity. The latter segment is supported by state subsidies under the country’s flagship SDE++ program and can be ground-mounted, floating solar or building-mounted systems. Further categorization shows that out of the new grid-connected capacity in 2023, building applied PV (BAPV) added 2.178 GW DC, building integrated PV (BIPV) contributed close to 100 MW, while utility-scale projects brought in 2.065 GW DC of capacity comprising ground-mounted, floating and agrivoltaic systems. At the end of 2023, the Netherlands had a cumulative installed PV capacity of 23.9 GW DC, according to the report. In 2022, the annual PV additions totaled 4.77 GW DC, 3.7 GW DC in 2021, and 3.88 GW DC in the year before that. This, according to the report, shows that the country has been observing a steady growth in annual PV installations. A Dutch New Energy Research report of March 2024 claimed 4.84 GW new PV capacity addition in the Netherlands in 2023, and forecasted 3.9 GW of new additions in 2024 (see Netherlands Installed 4.82 GW New Solar Capacity In 2023). Decentralized segment main driver What helps the Netherlands grow at a steady, sustainable pace is the decentralized PV deployment. The country experiences high electricity demand from home-charged electric vehicles (EV), heat pumps, and increasing use of air conditioning in the summer, making solar PV the main driver of the energy transition in decentralized systems as it is accessible to the end consumers. In the centralized power systems, it is wind that outperforms solar, and most of these installed offshore at the North Sea are connected to the TENNET transmission system. To make use of this infrastructure, the country is seeing a proliferation in hybrid solar and wind parks which again drives PV deployment here. In terms of regulatory framework, the country has its well-established SDE++ scheme that covers the operational period of a project and compensates the difference between the cost price and revenue. Smaller systems are backed by net metering, especially in the residential segment. Here, the government deducts the initial 3,000 kWh produced and fed into the grid against the same retail price.
