Demand for solar panels rising again now that netting scheme is here to stay

The demand for solar panels picked up strongly last month after several months of decline, NOS reports after speaking to the trade association Techniek Nederland and several installation companies. They attribute the increased popularity to the Dutch Senate deciding not to scrap the netting scheme that allows solar panel users to deduct the power they supply to the electricity grid from the power they purchase.

The solar power industry in the Netherlands has been booming for years. Last year, the number of homes with solar panels grew from 2 million to 2.6 million. But since last summer, installers noticed a significant decrease in demand, with some companies reporting as much as 30 percent fewer orders.

That happened after the government announced its plan to abolish the netting scheme as of 2025. According to the government, solar panels are now cheap enough to be a good investment even without government support. Although independent parties like Milieu Centraal calculated that solar panels would still pay for themselves within six years, that decision caused reluctance among homeowners.

The Eerste Kamer, the Dutch Senate, scrapped that plan last month, and solar panel installers immediately saw orders pick up again, Techniek Nederland and several solar panel companies told NOS. “People kept their hands on their purse strings due to the lack of clarity,” Yasin Kilic of the Utrecth Installation company Niyata said. “Now that there is clarity, the wait is over.”

Solar panels are also cheaper now. The high demand during the coronavirus pandemic coincided with delivery problems and staff shortages, making the panels relatively expensive. “Now there are large stocks at wholesalers due to the lower demand in recent months. And so the price is lower,” Kilic said. “We can supply the panels for thousands of euros less per house than during the peak.”