What is solar subsidy?
To promote the installation and use of solar energy, the government of many countries provides subsidies to the public. In the Netherlands, subsidies are provided in the form of 21% TW (belasting over de toegevoegde waarde) or the VAT paid for the solar panels.
With the installation of solar panels, the individual is recognised as a ‘small entrepreneur’ by the Belastingdienst or the Tax and Customs Administration. The excess energy generated by such an installation is fed back into the grid. As the individual functions as a small energy supplier s/he can reclaim the BTW on the initial investment.
How to apply for subsidy?
The refunds can be claimed by just following 3 simple steps.
Step 1: The user should be registered with the Belastingdienst as a small business entrepreneur. Consequently, ensure that the invoice of the solar panels and invoice from the energy company is in the registered individual’s name
Step 2: The individual should provide the bank details for the refund to Belastingdienst
Step 3: Finally the BTW return can be filed offline or digitally on Mijn Belastingdienst Zakelijk (My Tax and Customs Administration).
Once the declaration is filed and excepted by the Belastingdienst, the individual can expect the money to be refunded within 10 working days.