Solar panels without offsetting - Part 2
You can read part 1 of this blog here.
With the net-metering scheme, the investment in solar panels was quickly recouped. The negotiating parties PVV, BBB, NSC and VVD have included in the negotiating agreement that this scheme will be dropped. How will this affect the payback period of solar panels?
The existing scheme
Currently, owners of solar panels are allowed to deduct all the power supplied back from the amount of power purchased. The energy supplier deducts this on the annual bill. We show how this works using an example.
An average household
In our example, we assume a household that consumes 4,000 kWh of electricity annually. With solar panels, they generate 2,700 kWh per year. Part of the power from the solar panels is used directly in the house (‘self-consumption’), the remainder goes to the public grid. The proportion of self-consumption depends on several factors such as the ratio of generation capacity to consumption and whether or not you have an electric car and a heat pump. If you do not produce more than you need in electricity for yourself and do not charge an electric car or have a heat pump, self-consumption is about 1/3 of production. In our example, that's 900 kWh. The energy bill therefore shows an off-take of 3,100 (4,000 minus 900). Under the net-metering scheme, the part delivered back (1,800) is also deducted from the bill. This leaves an amount of 1,300 kWh, which has to be settled.
What is going to change?
The negotiation agreement indicates that the scheme will expire from 2027. Until then, all electricity supplied back may still be deducted from the amount taken. You could say that the energy supplier will pay you the full price for this at take-up. Energy suppliers charge an average of 26 euro cents per kWh (price level May 2024). When the net-metering scheme expires, you will receive a feed-in compensation per kWh you feed back, on average 5 euro cents per kWh.
Feed-in charges
Under the net-metering scheme, energy suppliers make losses on customers with solar panels. They have therefore introduced feed-in charges. There are different ways energy suppliers calculate these charges. On average, it comes down to 9 euro cents per kWh. These charges are paid by the customer with solar panels to the energy supplier. We assume that energy suppliers will no longer charge feed-in costs once the net-metering scheme is abolished.
Payback period if net-metering expires
To generate the 2,700 kWh from our example requires an investment in solar panels of 3,900 Euro. This does not include VAT, as it can be reclaimed. According to our calculation model, the investment is then recouped in 12 years, significantly longer than the 6 years we could previously calculate.
The warranty period on many solar panels is 20 years. Over that period, the return on investment is 6.4%. Still more than the interest rate on a savings account!
Calculation model
Woondokter provides the calculation model free of charge. This is under the condition that you mention Woondokter's name when using it for publicity purposes. Interested parties can request the calculation model by sending an e-mail to info@woondokter.nl
