Alternatives for current net metering policy for solar PV in the Netherlands: A comparison of impacts on business case and purchasing behaviour of private homeowners, and on governmental costs

Abstract

To stimulate grid-connected solar PV systems on private dwellings, the Netherlands currently have a net metering policy, but questions have been raised on its continuation. In this study, several alternative policy options were assessed on the financial case for private homeowners investing in a PV system (simple payback time), on purchasing behaviour (using a technology adoption model), and on governmental costs. While continuation of net metering policy leads to ongoing improvement of the financial case up to levels that could be considered overstimulation, three policy alternatives can be set up so that they stabilise simple payback times of recent and future generations of PV systems. Under these alternative instruments, deployment of PV systems in this market segment is indicatively estimated to be 15–20% lower by the year 2030 than with continuation of net metering policy, while corresponding governmental cost reduction indications would be more than 50%. We conclude that from a cost effectiveness point of view there is reason to change to an alternative instrument. We did not find any decisive arguments pro or con either of the three alternative instruments, neither on the basis of the three main impacts analysed nor from other aspects reviewed more qualitatively.