NETHERLANDS TO SLASH VAT FOR RESIDENTIAL PV TO 0%
The Dutch government is planning to reduce the value-added tax (VAT) applied to PV systems used in residential applications from 21 to 0%.
“The measure will be part of the Tax Plan 2023 package and still needs final parliamentary approval,” Dutch solar analyst Peter Segaar said. “As the Netherlands has been a firm proponent of the decision of the European Commission to enable this type of tax exemption, it is expected that this measure will be introduced by the end of this year.”
Building-integrated photovoltaic (BIPV) systems were not included in the proposal. “But part of the VAT paid for those installations can still be requested by homeowners. The majority of residential dwellings has, however, conventional PV systems mounted on roof tiles, or on flat roofs with mounting systems,” Segaar explained.
According to what he said, around 1.58 million Dutch households were equipped with a residential solar systems at the end of 2021. “These systems have a combined capacity of 5.6 GW,” he also noted.
The country is supporting rooftop solar system currently through a net metering scheme. The prospect of reduced net-metering returns may prompt Dutch homeowners to instead focus on raising the self-consumption rate of home solar systems, for instance by adding behind-the-meter battery storage.
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