New cabinet still abolishes balancing scheme

The net-metering scheme for solar panels will be completely ended by January 1, 2027, the new coalition parnters PVV, NSC, VVD and BBB have agreed.

In the outline agreement that has been published, you will search in vain for what is going to happen to the balancing scheme. But in the budgetary annex it is stated unequivocally: 'The salutation scheme for small consumers will be terminated as of January 1, 2027.'

Senate did not agree

Last February, the Senate prevented the bill proposed by outgoing Minister Jetten from passing to phase out the energy-saving scheme by January 1, 2025. The BBB and the PVV voted against then, but now apparently agree.

According to the current government, the scheme was no longer necessary because solar panels have now become much cheaper. It costs the government hundreds of millions of euros annually, and an increasingly small group of households without solar panels are subsidizing through their energy bills those households that do use solar energy. It is also detrimental to the overloaded electricity grid.

Feed-in charges

In response to the preservation of the net-metering scheme, a number of power companies have already announced that they will start charging feed-in fees to control the cost of net-metering. This is because people with solar panels can supply when the electricity costs little, while using it again when the price is higher. That difference is now effectively borne by people who do not have solar panels, the thinking goes.

With the elimination of the net-metering scheme, it is to be expected that power companies will start phasing out feed-in charges again.