SDE Subsidy in 2023

In 2023 it is again possible to apply for a subsidy for sustainable projects. This is the SDE++ subsidy 2023. We think it is important to inform you well about this scheme and the changes that will take place compared to the SDE subsidy in 2022. Read this page quickly for the latest information!

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What will change about the SDE subsidy in 2023? 

In 2021 and 2022, the SDE subsidy could only be applied for once. This year, too, applications can be made only once. This year, the SDE subsidy opens from September. If you want to make sure you receive the SDE subsidy this year, prepare your application now.

Like last year, this year the reduction in CO2 emissions is also taken into account in the allocation of the subsidy. For this reason, there are again a number of new techniques and categories that can also apply for the SDE++ subsidy this year. New components are:

PVT with heat pump

A PVT panel is a hybrid solar panel that generates heat in addition to electricity. With a heat pump, you bring the heat to a higher temperature so it can be used in the built environment.

_{CO2 capture} and use in greenhouse horticulture.

In greenhouse farming, additional_CO2 is used to increase its concentration in the greenhouse._CO2 captured at an industrial plant replaces_CO2 produced by the horticulturist (with a boiler or cogeneration unit). This stimulates the growth rate of the plants and vegetables produced within the greenhouses.

_Low-carbon production: advanced renewable fuels

In 2022, the category was created for the transportation sector. This category focuses on advanced renewable fuels (biofuels). The fuel only qualifies, if it is used for the Dutch market.

Maximum 50% of peak power solar panels feed back

Due to the tightness on the electricity grid, an additional requirement may also start to apply to solar PV projects smaller than 1 MWp. In this case, generating facilities will be allowed to feed a maximum of 50% of the peak power of the solar panels back into the electricity grid. In 2022, this was only for solar PV projects larger than 1 MWp. Rijksdienst voor Ondernemend Nederland (RVO), together with the ministry and grid operators, is now testing whether this change is feasible for all parties.

Budget Ceiling

These technologies are therefore also eligible for the SDE subsidy, as are solar and wind energy. As of the 2021 subsidy round, other new categories have also been added. These are ground-mounted and floating solar parks smaller than 1 MWp.

A ceiling has been set for a number of categories. This prevents a large part of the available budget from going to one category. The budget for industry for CO2 capture and storage (CCS) was increased by 2.5 megatonnes in 2022.

Having application arranged by Novar

Because the SDE application has several requirements and the application is sometimes quite complicated, it can be smart to have the application handled by an external party such as Novar. We have a special project team with a lot of experience and knowledge. This allows us to realize the highest possible subsidy and secure the SDE subsidy for your project.

Source : https://www.rvo.nl/subsidies-financiering/sde

When can you apply for the 2023 SDE subsidy? 

After a long delay, the grant is now open for applications. It reopened from Sept. 5 to Oct. 5, 2023.

How much SDE subsidy is available in 2023?

The available budget for the SDE++ has been increased. This means that a total maximum budget of 8 billion has been made available. This will be forgiven in the different phases and for the different categories. The budget is determined annually by the central government. As in past years, the SDE 2023 runs in different phases.

When must a project be completed to receive SDE funding?

When the central government grants the subsidy, it is important that the construction and commissioning of the solar installation meet some deadlines. The requirements for a project after the awarded SDE subsidy can be found here.

For example, for our category, we have to order the solar panels and associated materials within 18 months. This means on the 'back end' that all (environmental) plans and permits must be approved before then. For installations larger than 1MWp (1000 kWp), it is important that they are commissioned within 4 years.

What does a completed project entail?

The central government considers an SDE project completed when the following two requirements are met:

• If the capacity of the solar installation built corresponds to the subsidy granted. If an SDE subsidy has been granted for 10 MWp, for example, it is not intended to be used to build a 5 MWp solar farm. 
• If renewable energy is actually produced for which Guarantees of Origin (GO) are issued. 

If this is not met (on time), and the project is not carried out according to the project plan, the SDE subsidy grant will be withdrawn. Don't worry, that has never happened to us!

What is the effect of a negative electricity price on the SDE?

In recent years, the number of hours of negative electricity price has increased sharply. Negative electricity prices that lasted 6 hours or longer are becoming more common. A negative electricity price occurs when the supply of electricity exceeds the demand for electricity.

Unfortunately, this may well affect the business case of a solar energy project. This is because large-scale solar roofs and solar parks still depend on the SDE++ subsidy. The SDE subsidy reimburses the difference between the market value of the energy supplied and the cost price of renewable energy up to a certain lower limit, also known as the base amount. If the market value of the energy is equal to or lower than the base amount, the SDE subsidy does not increase further. But this is how a temporary financial "gap" is created.

Novar remains flexible

Since the amount of the subsidy thus depends on developments in energy prices, it is important to respond accordingly. We expect negative power prices to become more frequent in the future. Developing storage techniques are therefore essential. In this way, you can create flexibility that reduces the imbalance between supply and demand. We are therefore actively implementing solutions at several solar parks to ensure that your energy project has and maintains a positive business case. Also in the future.