If you take a quick glance at your annual energy bill, you’ll notice that the majority of energy consumption comes from gas—specifically for heating. It’s not that gas is more expensive than electricity, but in winter, we consume significantly more energy to heat our homes. In fact, winter energy use is 80% higher as we strive to stay comfortable.

The adoption of solar panels in Dutch homes has skyrocketed in recent years, reaching a peak in 2022 with about 500 megawatts of installed capacity. To put this into perspective, with the typical panel producing 350 watts per hour (as of 2022), that equates to approximately 1.5 million solar panels installed in residential properties in just one year. But if the main issue is gas, as mentioned earlier, why are so many households investing in solar panels? A significant driver seems to be the massive publicity solar panels have received, bolstered by the government’s policy to phase out gas in new construction projects. This has encouraged families to allocate their savings toward solar panel systems.

The Hard Facts

Nowadays (2024), solar panels offered by installers typically range from 440 to 535 watts per hour in capacity. Under ideal conditions, a panel can generate up to this amount of energy per hour. For example, a setup with 10 panels of the highest capacity mentioned could theoretically produce 4.4 kWh (4400 watts per hour). However, this maximum output is rarely achieved since it depends on specific, optimal conditions that occur only a few times per year.

Installers usually include a solar energy analysis with their quotes, considering factors like panel orientation, angle, and possible shading, all of which influence the total output. Additionally, there’s a gradual decline in performance over time due to wear and tear.

How Much Electricity Does a Household Use?

The average electricity consumption of a household in the Netherlands is around 2500 kWh per year, though this varies widely. Typically, usage is around 150 kWh per month in summer and can reach 250 kWh per month in winter. This usage pattern is the inverse of the solar panels’ production curve, as sunlight is more abundant in summer.

In the Netherlands, energy companies are currently required to balance (or “net”) consumption and production over a year. This net metering policy ensures that households benefit financially, even if their energy production does not match their momentary consumption. However, the new Dutch government is planning to phase out this scheme in a few years. Without net metering, households may need to install batteries to store surplus energy. Yet, home batteries come with their own set of challenges: they are expensive and can only store enough electricity for two or three days of consumption at best.

Evaluating the Investment

When considering solar panels, it’s essential to account for all these factors. Solar panel installations are a significant investment—one example installation cost €6000, with the government providing a VAT refund of approximately €1000.

Key Questions to Consider:

1. How much electricity do I consume annually?
2. How many panels can I install on my roof, and what is the expected annual output?
3. What are the installation costs for my home, and how many years will it take to recoup the investment?

For an average Dutch household consuming around 2500 kWh annually, with the current electricity price of €0.35 per kWh (as of November 2024, including taxes and provider fees), the annual electricity cost is approximately €875. Using the example installation, the investment would pay off in about seven years—assuming electricity prices remain constant.

Feed-In Charges (terugleveringkosten)

Since late 2023, many energy companies have introduced “feed-in charges,” reducing the compensation for excess electricity supplied to the grid by solar panel owners. Energy companies implemented these fees to offset the costs associated with solar customers, partly due to the net metering scheme.

For example, if a household consumes 2500 kWh and produces 2500 kWh with solar panels, their electricity bill would effectively be zero under net metering, despite consuming electricity at different times than when it was generated. However, in May 2024, it was announced that the government plans to abolish the net metering scheme by 2027. These changes—feed-in charges and the end of net metering—have raised concerns among both current and prospective solar panel owners.

Feed-In Charges and No More Net Metering (salderingsregeling)?

Feed-in charges were introduced as a response to the continuation of the net metering scheme. To address this, the Dutch House of Representatives decided that feed-in charges would be banned once net metering ends. This means households will not face both challenges simultaneously.

Example Solar Panel Installation

Consider a household with an annual consumption of 3500 kWh that installs a system of 10 panels. This system could generate approximately 4530 kWh annually. Of the 3500 kWh consumed, 1400 kWh is directly used in the home, resulting in an annual saving of €420. The household would then need only 2100 kWh from the grid, which can be fully netted, saving an additional €630 annually. The remaining 1030 kWh would be fed back into the grid, earning a feed-in tariff of approximately €0.05 per kWh, or €51 annually. Altogether, the household could save €1101 per year.

However, with feed-in charges like those from Eneco (€0.115 per kWh), the household would pay €360 annually for the electricity fed into the grid, reducing the net savings to €741 per year.

Despite feed-in charges, solar panels still offer significant savings—over 70% of total electricity costs. Moreover, if the system is installed in mid-2024, nearly half the investment could be recouped by the time the net metering scheme ends in January 2027.

What Should You Do?

Before making a decision, it’s advisable to conduct an independent evaluation of your home’s energy efficiency. While no company will offer this service unbiasedly, you can educate yourself, request multiple quotes, compare them, and draw your own conclusions. Every situation is unique, and many variables—like energy prices—are unpredictable.

If saving money is your priority, solar panels might not be the best first step. As mentioned earlier, heating accounts for the majority of energy consumption. Addressing this issue, for example by switching to electric heating with a heat pump, may offer more significant benefits. However, this requires a larger investment and depends on the specific characteristics of your home.

In conclusion, there’s no one-size-fits-all solution. Instead of offering definitive answers, it’s better to consider all the factors and ask the right questions to determine the best choice for your unique circumstances.