Netherlands to Launch €8 Billion Green Energy Subsidy Program in October 2025
The Hague, Saturday, 22 February 2025.
Starting in October 2025, the Netherlands will invest €8 billion in a subsidy program to support renewable energy projects, enhancing solar, green gas, and geothermal energy initiatives.
Program Structure and Objectives
The Dutch government’s new Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) will launch on October 7, 2025 [1]. This comprehensive initiative aims to make the Netherlands less dependent on fossil fuels while building a greener economy for the future [1]. The program will be implemented in five distinct phases, with projects requiring lower subsidies per ton of CO2 avoided getting priority in earlier phases [1].
Innovative Focus Areas
The scheme specifically targets projects that reduce strain on the power grid [1]. A notable innovation is the inclusion of vertical solar panels in the subsidy framework, as these generate electricity more evenly throughout the day, reducing peak loads [1]. The program also supports industrial heat pumps and electric boilers with heat storage capabilities, particularly those operating outside peak grid hours [1].
Track Record and Implementation
The initiative builds on previous successful implementations, with the 2023 program having approved 1,600 different projects [1]. The subsidy operates as a guarantee system, covering only the ‘unprofitable margin’ of projects, with subsidies automatically decreasing as market prices for electricity rise [1]. The government has also established dedicated funding reservations for technologies crucial to energy transition that currently have higher unprofitable margins, such as renewable fuels [1].
Broader Sustainable Energy Context
This initiative aligns with other Dutch sustainable energy programs, including the Investment Subsidy for Sustainable Energy and Energy Savings (ISDE), which will continue supporting businesses until December 31, 2030 [2]. The comprehensive approach demonstrates the Netherlands’ commitment to achieving its climate goals through various support mechanisms for sustainable energy adoption [1].