A new subsidy program has been introduced in the Netherlands to provide support for the domestic manufacturing of solar panels, batteries, and electrolysers. The initiative aims to boost the country’s renewable energy sector and promote the development of local manufacturing capabilities in these key areas

The Netherlands has introduced a new subsidy program, IMKE, to support domestic manufacturing of solar panels, batteries, and electrolysers for hydrogen production.

The Dutch government has initiated a consultation process, open until March 3, 2024, to gather feedback on various aspects of the subsidy program. This includes gathering information on the subsidy’s conditions, duration, and amount, among other relevant factors. The consultation document can be accessed here (in Dutch).

Addressing Europe’s manufacturing challenges

The Netherlands’ forthcoming subsidy arrives at a crucial moment for the European solar manufacturing industry, which has been facing significant challenges. Industry stakeholders have been advocating for urgent measures to safeguard European manufacturers.

Despite recognizing the challenges faced by the solar manufacturing industry, the European Commission has refrained from introducing new legislation to address the situation. Recent blog posts on PV Tech have examined the current manufacturing challenges in Europe and proposed leveraging the industry’s core strengths to overcome them.

Davor Sutija, CEO of NexWafe, emphasized the importance of Europe embracing innovation, implementing favorable policies, and forging alliances among European solar companies. Finlay Colville, Head of Research at PV Tech, explored the potential opportunities for PV production, equipment, and material suppliers in Europe to cater to the growing demand in the United States and India, as both countries are scaling up their domestic solar manufacturing industries.

Following in the footsteps of Germany and Hungary, the Netherlands has joined the ranks of European countries aiming to bring back domestic manufacturing capacity. Germany initiated an expression of interest last year, seeking 10GW of solar manufacturing capacity, while Hungary implemented a €2.4 billion (US$2.6 billion) scheme to support renewables manufacturing.

Last week, the European Union took a significant step towards supporting the domestic renewables manufacturing industry by adopting the Net Zero Industry Act (NZIA). This act aligns with the ongoing trend of European countries implementing subsidies and schemes aimed at bolstering renewables manufacturing.

In accordance with the regulations set forth by the Net Zero Industry Act (NZIA), the European Union has introduced measures to regulate the procurement of PV modules. These measures are designed to prevent any member state from acquiring more than half of the modules in auctions from a single country. This move aims to promote fair distribution and avoid concentration of PV module purchases within a single member state.

In addition, the implementation of the NZIA includes streamlining the permit-granting process for the construction or expansion of manufacturing plants. Plants with a capacity of less than 1GW will be guaranteed a wait time of no more than 12 months, while larger plants will have a maximum wait time of 18 months. Moreover, shorter deadlines will be established for strategic projects, further expediting the approval process.