The business case for solar panels: tax benefits and subsidies for Dutch businesses

Solar panels are becoming increasingly cheaper and better, while gas prices are rising and its usage is being discouraged. Additionally, there are various schemes and subsidies that make investing in business solar panels even more attractive. Below, we outline these schemes and subsidies for commercial and industrial use by businesses in the Netherlands.

Investment Deduction Scheme (KIA)

The Small-Scale Investment Allowance (KIA) is a tax scheme that provides tax benefits when you invest in assets for your business, including solar panels. This reduces taxable profit, ultimately resulting in financial benefits. Applying for or reporting the KIA is not necessary; your accountant can easily incorporate the investment costs into the tax return. More information about the KIA scheme can be found here.

Energy Investment Allowance (EIA) subsidy

Like the KIA scheme, the Energy Investment Allowance (EIA) offers fiscal benefits to companies investing in solar panels. However, this subsidy is not intended for individuals. With the EIA subsidy, you can report both the purchase and production costs of the solar panels. The scheme typically results in a 10% benefit and offers additional advantages such as depreciation on the investment and lower energy bills. If you wish to use this subsidy, you must submit an application to the Netherlands Enterprise Agency within a certain period after placing the order. Check the conditions and discover which investments are eligible for the EIA.

The Environmental Investment Allowance (MIA scheme) and the Vamil (Random Depreciation of Environmental Investments) are no longer applicable to business solar panels.

SDE++ subsidy

The Stimulating Sustainable Energy Production and Climate Transition (SDE++) subsidy cancels out the price difference between gray and solar power. Businesses with a commercial connection larger than 3×80 amps and a solar power installation of more than 15 kWp or 15,000 Watt peak can receive compensation for the generated energy.

Besides the financial benefits when it comes to the investment costs of solar panels, there are other reasons why solar panels make a good business case:

• Consuming the power generated by your solar system reduces your dependence on the grid and the associated costs.
• You contribute to a sustainable future and improve the positioning of your company through the reduction of your carbon footprint.
• With a connection of up to 3x80 amps, you can make use of the net metering scheme in the Netherlands to further reduce your electricity bill. 
• Installing a solar system will increase the value of your property, resulting in financial benefits when you are the property owner. 

Overall, the various schemes and subsidies provide a solid foundation for entrepreneurs to invest in business solar panels. The combination of tax benefits, subsidies, and the opportunity to benefit from sustainable energy production makes it attractive to switch to solar energy. 

Sources: 
https://www.belastingdienst.nl/
https://www.rvo.nl/subsidies-financiering/eia/ondernemers
https://www.zonnestroomnederland.nl/sde-subsidie-voor-zakelijke-zonnepanelen/