Today,
Friday 12 November, the Flemish government decided to lower solar energy
subsidies sharply
As
a result of this measure there will be greater pressure on the sector with the
following consequences:
1. In
the short term the price of solar panels will probably rise again due to shortage of panels and because the installers’ orderbooks are filling up rapidly.
2. As
a result of this it will not be wise to invest in solar
energy 1 year from now. There is a distinct chance that various installers will
become insolvent. The other effect is that banks will no longer finance such
projects because the return on investment will take too long.
3. Nevertheless the
distribution network managers will come under huge pressure to approve projects. Commitment to service by
the distribution network manager is essential for obtaining support.
Yet it does not cost the government any money
to pay the subsidies because the costs are paid by the electricity customers.
However, there will be a negative economic impact due to the above
consequences.
For Encon as an engineering firm the adjustment is not so bad in principle,
because it is now even more important to implement a good installation design.
However, due to the
impact on the sector it is important for the subsidy to be reduced slowly to lower the pressure on the market and create a transitional measure.
As a result, the market will have time to adapt to the new situation, and that
will not only benefit the economy but also the environment.
Do not hesitate to contact us for more information.