Netherlands Renewable Energy Tax Guide

Wind Turbine Taxation

• Income classification: Wind turbine income is classified as business income (winst uit onderneming) for commercial wind farms (operated through a BV or VOF), resultaat uit overige werkzaamheden (row) for passive investors in a wind cooperative, or box 3 capital income for small turbines held as personal investments. Most commercial investors use a BV (22% corporate tax) with the turbine as a business asset.
• Depreciation — wind turbines: Onshore wind turbines are depreciable as bedrijfsmiddelen (business assets). The standard depreciation method is 14.3% straight-line per year (7-year useful life) or the declining balance method (maximum 25%). Offshore wind farms: depreciation at 12.5% straight-line (8-year useful life) for the turbine itself, with longer periods for foundations and grid connection (20–25 years). The accelerated depreciation scheme (Versnelde afschrijving op duurzame bedrijfsmiddelen — Vamil) is not available for wind turbines (it targets specific environmental technologies, not mainstream wind).
• Decommissioning provision (ontmantelingsverplichting): Wind farm operators must recognise a decommissioning provision for future dismantling costs. The provision is not deductible when recognised (non-cash provision). Actual decommissioning costs are deductible when incurred. For offshore wind, the provision is typically larger (subsea cable removal, foundation removal to seabed level).
• Land lease payments (erfpacht, pacht): Payments to landowners for turbine placement are deductible business expenses. The landowner receives the lease payment as box 3 income (passive rental) or business income (if the farmer materially operates the turbine). Most landowners receive box 3 capital income.
• SDE++ subsidy for wind: The SDE++ (Stimulering Duurzame Energieproductie) provides a feed-in premium for renewable electricity production. The subsidy covers the difference between the cost price of renewable energy and the market energy price (the "onrendabele top"). The SDE++ payment is taxable income — included in the turbine's annual revenue and taxed at the operator's corporate or personal rate. See below for SDE++ tax treatment.

Solar PV Taxation

• Residential solar (particulier): Small solar installations on private homes (under 50 kWp) are subject to simplified tax rules. Self-consumed electricity is not taxable. Net metering (salderingsregeling): as of 2026, the net metering scheme is being phased out. Under the current rules, households can offset their generated electricity against their consumption — effectively paying only the energy tax on net consumption. From 2027 onwards, net metering will be fully phased out, and residential solar owners will receive a feed-in tariff for excess electricity (taxable as box 3 income if material amounts). The cost of the installation is not deductible (it is a home improvement).
• Commercial solar (bedrijfsmatig): Solar installations on commercial buildings (factory roofs, warehouse roofs, office buildings) are business assets. The installation cost is capitalised and depreciated: solar panels are depreciable at 25% declining balance (bedrijfsmiddelen). The income from selling electricity (via PPA or SDE++) is taxable as business income. Self-consumption reduces the business's electricity purchase costs (non-taxable benefit — no imputed income).
• Solar parks (grondgebonden zonneparken): Ground-mounted solar parks are commercial energy production assets. Depreciation at 25% declining balance. SDE++ subsidy on the electricity production is taxable income. Ground-mounted solar on agricultural land may affect the land's agricultural classification for property tax and inheritance tax (BOR) purposes.
• VAT on solar installation: Installation of solar panels on residential buildings: the 21% VAT can be recovered by the homeowner through a special scheme (the "BTW-teruggaafregeling voor zonnepanelen"). The homeowner registers as a VAT entrepreneur (BTW-ondernemer) and files a one-time VAT return to reclaim the VAT on the installation cost. Since 2023, the recovery is limited to the actual VAT paid — fixed rates no longer apply. For commercial installations: B2B installation is subject to 21% VAT (or 0% reverse charge if the installer is outside the Netherlands). The commercial property owner can recover input VAT if the solar installation is used for taxable economic activities.

Biogas and Anaerobic Digestion

• Biogas production: Biogas plants (vergisters) producing biogas from agricultural waste, manure, or organic waste benefit from SDE++ subsidies for gas injection into the natural gas grid. Depreciation: biogas plants are depreciable at 25% declining balance (machinery) or 14.3% straight-line. The digestate (residual product) used as fertiliser has a value for agricultural use.
• Energy tax exemption for biogas: Biogas injected into the natural gas grid is exempt from energy tax (energiebelasting) — a significant financial benefit compared to natural gas (which is subject to energy tax at approximately €0.50/GJ). The exemption applies to biogas certified as sustainable under the Dutch biogas registration system (Vertogas).
• CO₂ tax exemption: Biogas is also exempt from the Dutch CO₂ tax (CO₂-heffing) applicable to the industry sector (2026: ~€50/ton CO₂, rising to €200/ton in 2030). This exemption increases the financial attractiveness of biogas relative to natural gas.
• Power-to-X (PtX) and hydrogen: Electrolysis for green hydrogen production is an emerging sector. The Dutch government has announced a €9 billion National Programme for Energy Infrastructure (Pijplijn) for hydrogen. The production incentive (SDE++) covers green hydrogen from 2025 onwards. PtX plants are depreciable at 25% declining balance (electrolysis equipment). The electricity used for PtX benefits from the reduced energy tax rate for energy-intensive industries (belastingvermindering). See the government's Nationale Waterstof Strategie for policy details.

SDE++ Subsidy — Tax Treatment

• SDE++ is taxable income: The SDE++ feed-in premium (basisbedrag minus correctiebedrag) is fully taxable as business income in the year it is received. The subsidy is paid by RVO (Netherlands Enterprise Agency) annually in arrears. The recipient includes the SDE++ payment in their turnover for corporate tax or personal income tax purposes.
• VAT on SDE++: The SDE++ payment is treated as a subsidy directly linked to the price of the supply for VAT purposes. This means the SDE++ is part of the VAT taxable amount for the electricity or gas supplied. The producer must account for VAT on the SDE++ payment at the same rate as the underlying supply (21% for electricity, 9% for gas). In practice, many producers apply the RVO's guidance that SDE++ is outside the scope of VAT — but the correct treatment depends on the nature of the subsidy. A binding ruling (vooroverleg) is recommended.
• SDE++ and EIA interaction: The EIA (energy investment deduction — see below) applies to the investment cost, not the subsidy income. The SDE++ does not reduce the EIA-eligible investment amount. Both incentives can be stacked: EIA for the capex, SDE++ for the opex.

Energy Investment Deduction (EIA) and Other Incentives

• EIA (Energie-investeringsaftrek): The EIA provides a deduction of 45.5% of the investment cost from taxable profit for qualifying energy-saving technologies and renewable energy equipment. Qualifying assets include: solar panels, wind turbines, heat pumps, energy-efficient lighting, insulation, CHP (combined heat and power), biogas installations, electric vehicles (commercial), and battery storage. The investment must be at least €2,500 per asset and total investments must exceed €500 per year. The maximum deduction is approximately €132 million per year per company. The EIA is applied through the annual tax return — list qualifying assets in the EIA appendix.
• MIA/VAMIL (Milieu-investeringsaftrek / Willekeurige afschrijving): The MIA provides a deduction of 27–45% of the investment cost for environmentally friendly investments (including some renewable energy assets). VAMIL allows accelerated depreciation (75% in the first year) for the same assets. The MIA/VAMIL list (Milieulijst) is published annually by RVO and includes: solar panels on buildings, energy storage systems, electric transport, and specific environmental technologies. The EIA and MIA/VAMIL cannot both be claimed for the same asset — choose the most beneficial. See RVO's Energy List and Environment List for eligible technologies.
• KIA (Kleinschaligheidsinvesteringsaftrek): Small-scale investment deduction (KIA) applies to investments between €2,600 and €390,000 (approximate thresholds, indexed). The deduction is 28% of the investment amount above €2,600. The KIA can be combined with the EIA but not on the same asset.
• Energy tax reduction (vermindering energiebelasting): Businesses with high energy consumption can apply for a reduced energy tax rate (verlaagd tarief energiebelasting) for natural gas and electricity used in specific processes (glasshouse horticulture, mineralogical processes, electrolysis). The reduction is applied through the energy bill, not the tax return. Apply via the Belastingdienst's Energiebelasting portal.

Energy Tax (Energiebelasting) and Green Energy

• Energiebelasting rates (2026): The Dutch energy tax (energiebelasting) on electricity: approximately €0.10/kWh for the first 10,000 kWh (household band), decreasing to €0.04/kWh for 10,000–50,000 kWh, and further decreasing for larger consumption. Natural gas: approximately €0.50/GJ (first bracket), increasing to €1.00/GJ for higher consumption. The rates are indexed annually. The energy tax is collected by the energy supplier and remitted to the Belastingdienst.
• Green energy — reduced rate: Electricity supplied under a green energy contract (certified by CertiQ for Dutch guarantees of origin) is subject to the same energy tax as grey electricity. There is no reduced energy tax rate for green electricity consumption — the benefit of green energy is that the supplier must hold guarantees of origin, but the energy tax rate is identical.
• Energy tax refund for non-energy use: Businesses using natural gas or electricity for non-energy purposes (feedstock, reduction agent in chemical processes) can claim a refund of the energy tax. The refund is claimed via the Belastingdienst using the "Teruggaaf energiebelasting voor niet-energetisch gebruik" form.
• CO₂ tax (CO₂-heffing industrie): Since 2021, the Dutch CO₂ tax applies to industrial emitters (covered by the EU ETS) for emissions above a benchmark. The rate is approximately €50/ton CO₂ in 2026, rising to €200/ton in 2030. The CO₂ tax is deductible as an operating expense. The tax is in addition to the EU ETS allowance cost. See the Wet CO₂-heffing industrie for details.

Energy Cooperatives (Energiecoöperaties)

• Postcoderoosregeling (SCE): The Subsidieregeling Coöperatieve Energieopwekking (SCE) replaced the postcoderoosregeling in 2024. The SCE provides a production subsidy for renewable energy cooperatives and VVE (homeowners' associations). The cooperative must have at least 25 members and the renewable installation must be located within the municipality. The SCE subsidy is taxable income for the cooperative. Members benefit from a reduced energy tax rate on their share of the cooperative's electricity production.
• Cooperative structure — tax transparent: Energy cooperatives are typically structured as coöperaties (U.A.) or Verenigingen (associations). The cooperative itself is subject to corporate tax (VPB) if it carries on an enterprise (which most production cooperatives do). However, the cooperative may qualify for the vrijstelling voor energiecoöperaties (exemption for small energy cooperatives) if the annual production does not exceed 500 MWh and the cooperative meets the conditions. The cooperative can also apply the landbouwvrijstelling if the installation is on agricultural land and integrated into the farming operation.
• Member income from cooperatives: Members of an energy cooperative receive their share of the electricity production (or the financial benefit). The benefit is treated as: (a) reduced energy costs — not taxable (reduced consumption costs), (b) dividend — taxable in box 2 if the cooperative makes a profit distribution, or (c) box 3 income — if the member's shareholding is a passive investment. Most cooperatives distribute benefits as reduced energy costs (non-taxable).

For corporate tax and the participation exemption for renewable energy holding companies, see our Corporate Tax Guide →. For VAT on renewable energy supplies and cross-border PPAs, see our VAT/BTW Guide →. For transfer pricing on renewable energy project financing, see our Transfer Pricing Guide →.