Solar Panels Becoming Less Affordable

This article was last updated on August 15, 2023

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Solar panels will soon be slightly less affordable

Customers of energy supplier Vandebron with solar panels will soon receive less money back each month, making solar panels slightly less affordable. This change will affect around 70,000 customers and will save them between ten and twenty euros per month on average.

This change is happening because Vandebron will now charge costs for returning power to the grid. The company believes that by doing so, they are contributing to the costs associated with the growing number of solar panels on roofs, costs that are currently being borne by all customers, including those without solar panels. As a result of this change, customers without solar panels will see a reduction of around 20 euros per month on their bills.

Vandebron’s financial director, Kim Verdouw, believes that this decision will lead to a fairer distribution of costs. She acknowledges that it may be a tough pill to swallow for customers with solar panels, but believes that this change will foster new innovation in the industry.

‘Unfair’ Distribution of Costs

Vandebron argues that the current cost distribution is unfair. Under the current system, customers without solar panels end up paying for the benefits enjoyed by their neighbors with solar panels. By implementing this cost change, Vandebron aims to rectify this imbalance.

In practical terms, customers with solar panels will still benefit from them but to a slightly lesser extent. However, they will still pay less than customers without solar panels.

The alternative would be to continue dividing the costs among all customers, which would mean that those without solar panels would essentially subsidize their neighbors with solar panels. Vandebron believes that this is an unfair arrangement.

Higher Costs for Feeding Back Into the Grid

The increasing costs for feeding back into the power grid are primarily due to an overload of the grid. When the sun is shining, households with solar panels often generate more electricity than they consume. This surplus power is then supplied back to the grid. However, since demand is often low during these periods, the grid becomes overloaded, resulting in lower and even negative prices for the excess power. This situation puts additional financial burden on energy companies.

Vandebron’s financial director, Kim Verdouw, explains that these costs fluctuate and have been previously incorporated into the electricity rates. However, with this update, the costs will be deducted from the rates and reflected in the bills of solar panel owners.

Separate from Net Metering Scheme

This cost redistribution by Vandebron is separate from the net metering scheme, which is a subsidy program for solar panels in the Netherlands. Vandebron supports the energy transition and the increase in the number of solar panels. However, they believe that as more solar panel owners are returning excess power to the grid, the associated problems and costs are also increasing. Therefore, Vandebron has made this decision to address these issues.

Vandebron is confident that their customers will understand the reasons behind this change and will continue to support the company. They believe that transparency and the overall transition to renewable energy are more important than minor cost adjustments. Vandebron expects that other energy companies will eventually adopt similar measures as the industry continues to evolve.