The Netherlands VAT cut has a good prospect of photovoltaic market! 2022-10-10

Recently, the Netherlands announced that it will reduce the value-added tax (VAT) of photovoltaic systems for residential solar pv mounting systems market from 21% to 0%. This is also another EU country's efforts to accelerate the promotion of its own renewable energy after the European Parliament passed ‘the target of 45% renewable energy account in the EU's energy by 2030’.

The Netherlands has been ranked among the top 3 new PV installations in Europe for many consecutive years, It is also the second largest photovoltaic installed capacity per capita in the world. The reason why the Netherlands can become an important market for photovoltaic in Europe is that: on the one hand, the Netherlands is still one of the few countries in Europe that still implements the net metering policy of household photovoltaic, and on the other hand, it is also related to its logistics costs. The Netherlands has an advantageous geographical location and a highly developed logistics industry. Re-export trade is the main support for the Netherlands' foreign trade. Therefore, it is an important transit place for Chinese photovoltaic products to be exported to Europe. Obviously, the cost of PV products imported by the Netherlands will be lower than those of other European countries and regions.

In the context of soaring energy prices in Europe, photovoltaic have become an important energy saving measure in European households, especially in the Netherlands, where a net metering policy is implemented. Net metering + VAT free, the Netherlands residential PV market demand has locked for 2023.

In this measure, building-integrated photovoltaic (BIPV) systems are not included in the proposal. The solar panel roof mounts is still the main driver of the Netherlands photovoltaic market, and the ground mount solar racking systems accounting for about 20%, so the policy is aimed at the mainstream of the market.

From this point of view, the development prospects of photovoltaic in the Netherlands are excellent.

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