The government encourages companies and individuals to invest in renewable energy. On this page, we list all the (business) tax breaks and subsidies that apply to solar panels in 2024.
Since 2023, a VAT rate of 0% on solar panels. This zero rate applies specifically when solar panels are installed on houses or outbuildings of a house. The exact conditions can be found on the website of the Tax Office.
When solar panels are used as a business investment on a business premises are installed, the standard VAT rate of 21% applies. In this case, businesses can often reclaim the VAT they pay on the purchase and installation of the solar panels through their VAT returns.
The net-metering scheme allows owners of solar panels to offset the electricity they feed back to the grid against their own energy consumption, resulting in lower energy bills. This process is known as netting. As a small consumer, you receive the same tariff for the electricity generated as you would normally pay to your energy supplier.
Currently, you are allowed to supply self-generated electricity to the grid and offset it against your own consumption at another time. There was a proposal to phase out the net-metering scheme until 2031, but the new cabinet has recently decided to extend the Salutation scheme to be abolished by 2027.
The Energy Investment Allowance (EIA) was created to encourage the use of renewable energy. This scheme allows 45.5% of investment costs deductible from taxable profit. If you have a small consumer connection (maximum 3x80A) and invest in at least 15,000 Wp of solar panels (about 50 to 60 panels), you are eligible for the EIA.
Not only solar panels, but also other investments in assets for your business may be eligible for the EIA. In addition, the Small Scale Investment Allowance (KIA) may also be applied, which can further increase the tax benefit.
For companies considering investing in solar panels, the Small Scale Investment Deduction (KIA) provides an attractive financial incentive. This scheme is specifically aimed at supporting entrepreneurs in making investments in their business, including the purchase of business assets such as solar panels.
If a company invests in assets eligible for investment deduction within a financial year, the KIA can be applied. This means that you can invest up to maximum 28% of the investment in solar panels is allowed to deduct extra from your profit.
The SDE++ focuses on encouraging companies and (non-profit) institutions in particular to invest in renewable energy sources, including solar panels. If a company is awarded an SDE++ subsidy for solar panels, it receives during 15-year fixed remuneration per kWh of solar energy generated.
An important condition of the SDE++ is that it is only available to large consumers, defined as companies with a connection larger than 3x80A (ampere). Companies with a small-consumer connection (up to 3×80 amps) are not eligible for SDE++, but may be able to benefit from the Energy Investment Allowance (EIA).
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