Dutch solar expansion cools down as profit margins drop

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Growth in Dutch solar energy capacity is levelling off, according to a report released by the Netherlands Enterprise Agency (RVO) on Tuesday. The slowdown is most pronounced among households and small businesses, though large-scale solar parks and commercial rooftop installations are experiencing similar declines. The agency attributes the cooling market directly to falling financial yields across all sectors.

Net-metering repeal and grid fees weaken home solar demand

For residential users and small businesses, the upcoming end of the net-metering scheme on 1 January 2027 represents the primary cause of market deceleration. Under the new rules, feeding excess electricity back into the grid yields significantly lower financial returns. Additionally, energy suppliers increasingly charge feed-in fees to customers who return surplus solar power to the network, further undermining household incentives.

Grid congestion stalls commercial development

For large-scale commercial projects, persistent power grid congestion remains the main obstacle. Developers frequently fail to secure required grid connections, leading to fewer project proposals and higher cancellation rates during planning stages. Although total solar capacity grew by 1.4 gigawatt-peak in 2025 to reach 29.4 gigawatt-peak—supplying 19.7 per cent of total Dutch electricity—growth rates fell well short of the rapid expansion recorded in 2023 and 2024.

Negative power prices force temporary shutdowns

The RVO also highlighted that combined solar and wind generation increasingly exceeds national electricity demand during peak hours. Surplus production resulted in more frequent hours with negative power prices, forcing operators to shut down green energy installations temporarily. Estimates indicate that curtailment caused the loss of several per cent of generated solar power in 2025, leading the RVO to project even slower annual solar capacity growth over the coming years.

@ anp | NEWS BRAINPORT

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