Dutch Cabinet Confirms €8 Billion Budget for September SDE++ Sustainability Round
The Hague, Friday 13 February 2026
Opening on 22 September 2026, the SDE++ scheme offers an €8 billion lifeline for industrial decarbonisation, specifically ring-fencing €750 million per domain to ensure technological diversity. However, despite rising negative power prices, the cabinet has controversially excluded subsidies for battery-based delayed delivery, citing a lack of reliable data—a decision that leaves the solar sector seeking urgent dialogue.
Structural Safeguards for Industrial Transition
The 2026 round, running from 22 September to 22 October, operates in five phases with subsidy intensities scaling from €75 to €400 per tonne of avoided CO2 [2]. To prevent established technologies from monopolising the fund, the government has maintained its system of ‘fences’ (hekjes), reserving €750 million specifically for the ‘molecules’ domain [1][2]. This reservation is strategically critical for the decarbonisation of major chemical clusters such as Chemelot and the North Sea Canal area, which are currently the focus of the ‘Nationaal Programma Verduurzaming Industrie’ (NPVI) [4]. By ring-fencing funds for green hydrogen and sustainable chemistry applications, the cabinet aims to support the complex transition of these energy-intensive sectors despite the broader economic headwinds facing Dutch industry [1][4].
New Categories Target Infrastructure and Hydrogen
Following advice from the Planbureau voor de Leefomgeving (PBL), the cabinet has expanded the scheme’s scope to include process-integrated heat pumps and carbon capture and storage (CCS) projects utilising low-carbon hydrogen [1]. These additions are designed to reduce natural gas consumption in industrial processes [1]. Furthermore, the scheme will for the first time include a category for solar photovoltaic (PV) projects situated along roads and railways, encouraging the dual use of infrastructure land [2]. Conversely, categories for land-based solar tracking systems larger than 20 MWp and water-based systems larger than 1 MWp have been closed due to a complete lack of applications over the past three years [2].
Market Volatility Exposes Subsidy Gaps
While the SDE++ expands in scope, it faces criticism for failing to address the volatility of the modern energy market. Solar developers are grappling with an increasing number of hours where electricity prices turn negative, forcing them to curtail production to avoid paying to put power on the grid [3]. The current subsidy model, which calculates support based on a theoretical 855 full-load hours for solar systems, does not account for this curtailment, leading to significant financial shortfalls for project owners [3]. Holland Solar contends that the exclusion of battery-based delayed delivery from the 2026 round undermines the business case for new renewable assets, arguing that independent metering data could already solve the ministry’s validation concerns [3].
Grid Congestion and Industrial Exodus
The subsidy round launches against a backdrop of severe infrastructure constraints and industrial contraction. Network operator TenneT has warned of imminent connection stops for small consumers in Gelderland, Utrecht, and Flevoland due to grid congestion, a situation Minister Sophie Hermans describes as critical [4]. Simultaneously, the industrial sector is shrinking; following a 20% decline in 2025, fears exist that a further 20% of Dutch industry could disappear in 2026 [4]. To mitigate these competitive disadvantages, the government has increased the Indirect Cost Compensation (IKC) budget to €300 million for 2026, aiming to retain vital industrial capacity while the longer-term transition to a carbon-neutral system by 2050 continues [4].