Return costs for owners of solar panels are not unreasonable, according to the regulator ACM

Households with solar panels cause higher costs for energy suppliers than households without, the Netherlands Authority for Consumers and Markets (ACM) said on Wednesday. Suppliers are therefore allowed to distinguish between households with and without solar panels, the regulator said.

ACM conducted research at Budget Energie, Vattenfall, Eneco and Engie, which supply more than half of Dutch households with electricity. These four companies were also selected because each charges different rates, which provides a good overview of the entire market.

The reason that electricity suppliers charge feed-in costs is that owners of solar panels cause costs. For example, energy companies have to purchase more expensive electricity in the winter months, which owners of solar panels can offset against the cheap electricity they generate in the summer months.

Energy companies also have to deal with so-called ‘imbalance costs’, which are caused by enormous waves of solar power flooding the electricity grid during sunny days.

According to ACM, suppliers do not earn extra from the higher rates imposed on solar panel owners. However, it has become more difficult for households to make good comparisons between different providers.

The regulator therefore calls on suppliers and energy comparators to do their best to make energy contracts more comparable. ACM says it will continue to closely monitor the energy market and conduct new research if necessary.

At the beginning of this year, a majority in the Senate rejected the government’s plan to gradually phase out the netting scheme from 2025. The favorable netting scheme for owners of solar panels will therefore remain in place for the time being.

Energy Minister Jetten wants to get rid of the scheme because, according to him, it is unfair and leads to an even heavier burden on the already overcrowded power grid. Consumers now lack an incentive to directly use the electricity they generate themselves.

Because millions of households have now installed solar panels, the netting scheme now costs the government hundreds of millions in lost energy tax each year.