It now takes 20 years for solar panels to pay for themselves: Homeowners’ assoc

The time that it takes to earn your money back after purchasing solar panels has increased to 20 years due to the abolition of the netting scheme. The Dutch homeowners' association (VEH) reported this based on new calculations of research agency Berenschot.

At the end of last year, the Senate voted in favor of abolishing the netting scheme in 2027. This scheme ensures that people are currently able to offset the electricity generated by their solar panels against their energy usage. With the new plans, consumers who supply electricity will receive compensation from their supplier over two years.

The time it takes to earn your money back is also dependent on the electricity prices, the costs related to supplying electricity back to the grid, and the resupply compensation.

According to the research, the supply costs are expected to be as high as compensation given for supplying electricity, which would mean that homes with a solar panel would receive hardly anything for their electricity generated from the solar panels.

"The payback period is even longer than previously thought," said Judith Scholte of the VEH. "Consumers are in danger of completely dropping out of buying solar panels."

VEH did add that the new calculations apply to people who have yet to buy a solar panel. The payback period is shorter for people who already own a solar panel.

According to VEH, solar panel owners are best using the solar energy themselves to shorten the payback period. Currently, the homes use an average of 30 percent for themself, but VEH stated that if the homes were to use 60 percent themselves then the payback period drops to 12 years.

The homeowners association wants the Cabinet to take additional measures to make solar panels more attractive. “The government said that they want to reach climate goals. Solar panels on roofs are a huge necessity for this,” said Scholte.