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Clean energy for EU islands
Regulatory informationRES-electricity

Tax regulation mechanisms (reduction of environmental protection tax)

Abbreviated form of legal source(s)

Act on the Environmental Protection Tax

Description of support scheme

The ‘Wet belastingen op milieugrondslag’ (Act on the Environmental Protection Tax) allows for tax exemption for the customer if the electricity consumed is from renewable energy sources and generation of this electricity is carried out by the consumer themselves.

Amount

Depending on the level of consumption, different tax bands exist. For a period of 12 months the tax bands are divided as follows:
• consumption up to 10.000 kWh, per kWh: €0.09428
• consumption between 100.000 and 50.000 kWh, per kWh: €0.05164
• consumption between 50.000 and 10.000.000, per kWh: €0.01375
• consumption higher than 10.000.000 (for businesses) per kWh: €0.00113
• consumption higher than 10.000.000 (not for businesses) per kWh: €0.00056
If the consumer themselves have generated the electricity from renewable energy sources, they are exempt from this tax (art. 50 par. 5 in conjunction with art. 59 par. 1c and art. 64 par. 1 Act on the Environmental Protection Tax).

Addressees

Those who both generate and consume the electricity from renewable energy (art. 64 par. 1 Act on the Environmental Protection Tax).

Procedure

Tax exemption must be requested from the tax office through a tax return.

Competent authority

Dutch Tax Authority

Technologies

Wind energy onshore

Eligible

Wind energy offshore

Eligible

Solar energy

Eligible

Geothermal energy

Eligible

Biogas

Eligible

Hydro-power

Aside from traditional hydropower plants, the generation of electricity from tidal flows and waves is eligible as well (art. 47 par. 1i Act on the Environmental Protection Tax).

Biomass

Eligible