ACM’s energy monitor: Feed-in costs for households with solar panels went up approximately 10 percent

Households with solar panels that have to sign new energy contracts have to pay approximately 10 percent more than last month for feeding power into the grid. This is revealed by calculations of the Netherlands Authority for Consumers and Markets (ACM). Each month, energy suppliers must submit to ACM the prices of all energy contracts on offer. ACM publishes all these prices in the monthly Monitor on the consumer energy market.

In addition to the increase in feed-in costs, ACM also sees that this month’s prices for fixed contracts for electricity and natural gas are 0 to 2.5 percent higher than last month’s. The prices of variable contracts remained approximately the same. The price on the wholesale market for natural gas fluctuated considerably last month. After a rise to 58 euros per MWh in early February, the price has already dropped significantly to 42 euros per MWh.

Feed-in costs and feed-in compensations

Energy suppliers incur costs for the power that is fed into the grid by households with solar panels. The law allows suppliers to charge these costs also to the group of customers that cause those costs. Calculations by ACM show that the feed-in costs with new contracts have gone up approximately 10 percent over the past month. In addition, it turns out that 11 suppliers charge a net-negative feed-in compensation (fee) to customers that produce more power with their solar panels than they consume over the entire year. This net-negative feed-in compensation (fee) only applies to the amount of power that, after applying the net metering scheme, is fed into the grid.

Until 2027, households are allowed to subtract the electricity they produce from the electricity they take from the grid on their annual bills. If, on a yearly basis, solar-panel owners feed more power into the grid than they take from it, they are entitled to a reasonable compensation from their energy supplier. Energy suppliers set this compensation for feed-in power themselves. In addition, suppliers charge feed-in costs. If the compensation per kWh is lower than the feed-in costs per kWh after subtraction, it is considered a net-negative feed-in compensation (fee). That is currently the case with 11 suppliers. A net-negative feed-in compensation (fee) is not prohibited under the law, as long as it does not lead to unreasonable prices.

ACM’s oversight

The fact that, over the past month, the feed-in costs with new contracts have increased 10 percent, and that households deal with a net-negative feed-in compensation (fee) with 11 suppliers begs the question of whether these feed-in costs are reasonable. ACM keeps a close watch on the prices of energy suppliers, and sees to it that these are not unreasonable. In the current law, it is stipulated that, in that context, ACM has to look at the total price that consumers pay, not at the different elements of this price (such as the feed-in costs, for example). ACM is conducting a study into the ways in which energy suppliers incorporate the costs for solar panels into their prices, and expects to publish the results of this study in several months.

Some households are concerned that, as a result of the feed-in costs, their solar panels will cost more than they bring in. According to Dutch environmental awareness organization Milieu Centraal, solar panels last approximately 25 years, and result in lower energy bills in all those years. In this way, solar panels pay for themselves throughout their lifespans. However, the time to recoup the costs as well as the financial benefits of solar panels depend on the energy contract, the number of solar panels, and how much power is used at what time.

Contracts after January 1, 2027

The Dutch legislature has decided that the net metering scheme will end on January 1, 2027. From that date, households will no longer be allowed to subtract the electricity they produce from the electricity they take from the grid on their annual bills. After January 1, 2027, too, ACM will keep a close watch on the reasonableness of prices, and is still in conversation with the Ministry of Climate Policy and Green Growth (KGG) on how the Dutch legislature envisions this regulation. Meanwhile, ACM is seeing that, already today, there are energy suppliers offering contracts that extend beyond 2027. ACM is calling on consumers who are considering signing such contracts to properly compare different contracts with each other, and make a well-informed decision, for example through a comparison website. ACM’s Monitor on the consumer energy market also reveals that, for households with solar panels, there is a wide selection of contracts with longer or shorter durations.