Dutch Government Boosts Energy-Efficient Investment Incentives for 2025
Amsterdam, Tuesday, 31 December 2024.
The Dutch government has increased funding for energy-efficient investments to €431 million in 2025, aiming to foster business investments in sustainable technologies and reduce CO2 emissions.
Significant Funding Increase
The announced funding represents a substantial increase of €172 million compared to 2024 [1]. This enhancement of the Energy Investment Allowance (EIA) scheme will continue into 2026, when the available funding will further increase to €460 million [1]. Through this program, businesses can deduct 40% of their investment costs in energy-efficient technologies from their taxable profits [1].
Expanded Eligibility Criteria
The Netherlands Enterprise Agency (RVO) has revised the Energy List for 2025, introducing significant changes to eligibility requirements. Notable among these changes is the removal of restrictions on solar panel installations, which previously required small-consumer connections. Under the new rules, businesses with large-consumer connections can now qualify for tax benefits, provided they meet certain conditions [1].
Innovation in Sustainable Technologies
A notable addition to the eligible technologies list is the innovative iron fuel boiler system, which can replace gas-fired boilers. This inclusion demonstrates the government’s commitment to supporting proven technical innovations that contribute to the energy transition away from fossil fuels [1]. Additionally, the scheme has updated requirements for heat pumps in buildings, implementing higher Seasonal Coefficient of Performance (SCOP) standards to ensure greater efficiency [1].
Market Adaptations and Removals
Responding to market developments, the government has increased maximum investment amounts for insulation in existing structures and insulating glazing, acknowledging rising market prices [1]. Conversely, certain smart grid technologies and network balancing investments have been removed from the eligibility list, as their payback period has decreased to less than five years, making them commercially viable without additional support [1].