Want to apply for an SDE++ subsidy? Read everything you need to know here

SDE++ (Stimulating Sustainable Energy Production and Climate Transition) is an operating subsidy: you receive a subsidy per unit of sustainable energy produced or CO2 avoided — not upfront for the investment. Duration: usually 12-15 years. Applications are submitted to the RVO during the annual opening rounds. The tender system ranks projects by subsidy price (€/kWh or €/ton CO2). For wind, solar, geothermal energy, hydrogen, and CO2 reduction. High amounts are possible (tens of millions of euros), but it is a complex and lengthy process. Below: how it works and when SDE++ is relevant for SMEs.

The short answer

• What: operating subsidy for sustainable energy and CO2 reduction.
• Duration: usually a 12-15 year operating period.
• Amount: difference between market price and cost price of sustainable energy — base amount minus correction amount.
• Categories: solar (PV and thermal), wind, geothermal energy, biomass, hydrogen, industrial CO2 reduction.
• Applications: at RVO during opening rounds (often 2 per year) — tender system.

How does SDE++ work?

Unlike EIA (one-off deduction for investment), SDE++ is an operating subsidy:

• Request in advance for a specific project (location, size, technology).
• Upon award: during the operating period (12-15 years), you will receive a subsidy per unit produced (kWh, GJ) or avoided CO2 (ton).
• Subsidy amount = base amount (guaranteed minimum) – correction amount (average market price).
• If the market price falls: the subsidy compensates. If the market price rises: less subsidy.

Guarantees the operational feasibility of sustainable projects regardless of the energy market.

Categories

• Solar PV on buildings: small-scale (≥ 15 kWp) to large-scale.
• On-ground solar PV: solar parks.
• Wind: on land and at sea.
• Geothermal energy: shallow and deep.
• Biomass: combustion, fermentation.
• Hydrogen: green hydrogen via electrolysis.
• Residual heat: absorption from industrial processes.
• Industry CO2 reduction: comparable to VEKI but operation instead of investment.
• Carbon capture (CCS): pilot projects.

Terms and Conditions

• Permits: environmental permit, possibly a WLO permit. Arrange in advance.
• Grid connection: proof of grid connection from the energy supplier — often a bottleneck.
• Location: locked upon request (no switching afterwards).
• Realization: operational within the timeframe (1-5 years depending on category).
• Fence-to-fence measurement: accurate measurement of energy produced or CO2 avoided.

Tender system

Applications are ranked by subsidy price (€/kWh or €/ton CO2). The cheapest projects receive subsidies until the budget is exhausted.

Practical: applicants choose a subsidy below the maximum base amount to achieve a higher ranking. Underwriting too low a budget can lead to operating losses — a strategic consideration.

Application procedure

1. Preparation: project plan, permits, grid connection, business case.
2. Submission: to RVO during the opening round (usually open for 3-6 weeks).
3. Assessment: 2-6 months prior to decision.
4. Finalizing permits: if not yet finalized.
5. Realization: construction and commissioning within the timeframe.
6. Operation: annual measurement data and subsidy payment (per kWh or ton of CO2).

Saskia's green hydrogen

Saskia's cleantech startup wants a 1 MW electrolyzer for green hydrogen — investment €3 million, production 150 tonnes of hydrogen/year.

• Maximum base amount for green hydrogen 2024: ~€6/kg hydrogen = €900,000/year maximum.
• Falling below €5/kg = €750,000/year — better ranking, lower subsidy.
• Over 15 years of operation: €11.25 million in subsidies.
• In a rising hydrogen market: correction amount increases → less subsidy.

For projects of this caliber: a specialist SDE++ advisor (€30,000 – €80,000 trajectory) and legal guidance regarding permits are indispensable.

For whom is SDE++ relevant?

Especially for:

• Large industrial companies with process investments (hydrogen, waste heat).
• Energy producers (solar park, wind farm, geothermal).
• Farmers with biomass or fermentation plants.
• Housing corporations with large heat networks.

For small SMEs: often too complex and large. Smaller-scale alternatives: EIA, regional energy subsidies, or subsidies via the energy supplier.

Honest recommendation

SDE++ is for seriously scalable sustainable projects — investments starting from €500,000 with multi-year operation. For small solar panel installations: EIA + Net Metering scheme is often sufficient. For larger projects or hydrogen/geothermal energy: a specialist advisor (€20,000 – €80,000) is indispensable. The process is long (6-24 months from application to operation) — plan early and take grid connection bottlenecks into account.

For other topics: VEKI, EIA and subsidies overview.

Frequently Asked Questions