November 28, 2024|General

Minimizing feed-in costs in the Netherlands

Since August 2024, the Netherlands has introduced a new fee for feeding PV electricity into the grid. However, these costs can be reduced by increasing self-consumption – allowing for free hot water while avoiding additional fees!

Future and current owners of photovoltaic systems in the Netherlands, who are already contributing to renewable energy, will face additional charges. These fees are a result of energy providers compensating for the rising costs caused by an excess of electricity in the public grid. Many energy providers in the Netherlands now offer detailed overviews of the annual fees based on the number of kilowatt-hours (kWh) fed into the grid.

Using sample yield data, we’ve simulated the following expected costs under these conditions: Household of 4 people, no battery storage, self-consumption rate of approximately 30%

PV Capacity (kWp)	Annual PV Yield (kWh)	Feed-In (kWh)	Annual Fee (€)
PV Capacity (kWp) 5	Annual PV Yield (kWh)4589	Feed-In (kWh)3213	Annual Fee (€)330
PV Capacity (kWp) 8	Annual PV Yield (kWh)7342	Feed-In (kWh)5874	Annual Fee (€)585
PV Capacity (kWp) 10	Annual PV Yield (kWh)9177	Feed-In (kWh)7525	Annual Fee (€)787

Higher self-consumption, lower fees

The less electricity you feed into the grid annually, the lower your fee. Even during sunny months, you can maximize the benefits of your PV system by increasing self-consumption. Using PV-generated electricity for heat can boost self-consumption from 30% to as much as 85%, requiring only a modest investment. A PV heating element, such as the AC ELWA 2, costs 693€ (excluding VAT).

What can customers save?

Reducing the amount of electricity fed into the grid has double benefits for customers in the Netherlands.

By using PV electricity to heat water during the day, you save energy that would otherwise be consumed by conventional methods (gas, oil, heat pumps, or electricity) in the evening.

But the greatest advantage lies in avoiding the high fees. If a customer uses approximately 3,500 kWh for water heating instead of feeding it into the grid, they can save around €350 annually on feed-in fees.

This dual advantage of generating hot water with solar energy and reducing fees has long-term benefits. For instance, if feed-in fees increase or fossil fuel prices rise, the savings become even more significant.

Save 350€ of charges with PV heat

The 350€ saved annually can be compared against the initial investment for PV-powered hot water using my-PV products. In the most cost-efficient case, PV system owners can retrofit their system with an AC ELWA 2, assuming a compatible surplus measurement device (e.g., by a compatible partner or a "slimme meter" acting as a P1 meter) is in place. If no suitable surplus detector is installed, the addition of a my-PV WiFi Meter will be required.

At a cost of €693 (excluding VAT), the photovoltaic heating rod pays for itself in less than three years – assuming stable costs, meaning the fees do not increase further. After that, the customer enjoys pure savings and lower operating costs for hot water!

When are feed-in fees charged in the Netherlands?

You pay feed-in fees when the electricity produced by your PV system is fed into the grid. Electricity generated by your solar modules is first used for household consumption. For instance, if your washing machine is running, the electricity will be consumed immediately. Any surplus electricity is then fed into the grid, and this is when the provider charges feed-in fees.

Curious about the fees charged by your energy provider in the Netherlands? Check out this overview.

Stay informed

As early as August 2024, my-PV informed newsletter subscribers about the rise in feed-in fees and the end of net metering in the Netherlands. For more details, check out the original article.

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