The Netherlands plans to end its SDE++ subsidy for new solar and wind projects from July 2027
It will adopt a 2-way contracts for difference (CfD) system to ensure price stability
The change aligns with EU Electricity Market Design rules and may later include nuclear and geothermal
The Netherlands plans to end its subsidy scheme for new solar PV, offshore, and onshore wind energy projects from July 17, 2027, intending to replace it with a contracts for difference (CfD) arrangement.
Under the current arrangement, the Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) provides financial incentives for projects that generate sustainable electricity. In keeping with the EU Electricity Market Design (EMD), the Dutch subsidy scheme will no longer be available from 2027.
It may also be extended to nuclear energy, geothermal, and other sustainable electricity sources at a later date, according to the Ministry of Economic Affairs and the Ministry of Climate and Green Growth.
According to the revised EU regulations, projects with higher than 200 kW installed capacity will be considered large-scale projects and subject to the CfD arrangement.
Under the arrangement, if market prices drop below the agreed strike price, the government pays developers the difference. If prices rise above it, developers pay the extra back to the government, thus saving projects from negative electricity prices.
The Netherlands sees 2-way contracts as effective and efficient, as these provide strong investment security.
The Dutch government recognizes the contribution of the subsidy scheme for the growth of renewables by bringing down the cost; however, it says that an evaluation of the scheme points to the risk of overstimulation. Several other European markets have already switched over to the CfD system, such as the UK, which is already planning for allocation round 8, and Romania (see UK Mandates Solar PV Supply Chain Plans For Allocation Round 8 and Romania Awards 1.48 GW Solar PV Capacity In CfD Round 2).
The ministries invited a consultation on the proposed move on October 16, 2025. Submissions will be accepted till November 14, 2025.
In July 2025, the country closed its SDE++ 2024 funding round, awarding close to 1.8 GW to solar PV out of a total of 2.08 GW (see Netherlands Awards 1.8 GW Solar in SDE++ 2024 Round).
