- DNE’s new research report on the Dutch solar market pegs annual solar installations at 4.82 GW in 2023
- Residential solar drove the growth with the addition of 2.55 GW capacity
- C&I and ground mounted PV is facing problems of volatile material prices, high interest rates, and lack of grid capacity
The cumulative installed solar PV capacity of the Netherlands exceeded 24 GW at the end of December 2023, according to the Dutch New Energy Research’s (DNE) new report. The country added 4.82 GW new solar capacity last year.
According to the DNE analysts in the National Solar Trendrapport 2024, the residential segment installed a record high of 2.55 GW, representing a 17% annual growth. The commercial and industrial (C&I) segment also recorded 2.25 GW additions last year. The report writers say both these segments have grown by a factor of 3 since 2019.
The residential segment is the driving force for solar energy growth in the Netherlands. In H1/2023, PV additions grew significantly thanks to the energy crisis leading to extreme demand.
It is the owner-occupied properties that opt for rooftop solar systems. Rental properties, that are mostly high-rise buildings are not taking to solar energy so quickly since these are less suitable for solar panel deployment. Additionally, owners of rental properties do not invest in panels as they have to bear the costs, while tenants enjoy the benefits of solar power generated on site.
The researchers point to the problems the C&I and ground mounted solar segment have been facing. Volatile material prices, high interest rates, and lack of grid capacity are making it difficult for the C&I players to realize their projects. In fact, grid connection issues are hampering the residential segment as well.
At the end of 2023, the cumulative PV capacity came from 10.6 GW residential and 13.9 GW C&I capacity. Solar energy now accounts for 17.6% of the Dutch electricity mix, contributing to the 50% renewable energy share.
DNE forecasts that the annual installed solar power capacity in the Netherlands will decline to 3.9 GW in 2024, with 1.7 GW contributed by the residential segment.
To encourage the uptake of solar energy, the government needs to make additional efforts with appropriate policies that incentivize solar investment, and small innovative projects, recommends the report.
The DNE report in Dutch is available for free download on its website.
Under the Dutch National Energy System Plan (NPE), the country has the potential to install 173 GW of solar PV capacity by 2050, with 145 GW theoretical potential for PV on rooftops and façades. However, the government wants to restrict the use of agricultural land for solar panels, which the industry believes is harmful for the national energy transition (see Netherlands Discussing Space For Solar PV).
