Dutch government boosts energy efficiency funding for businesses in 2025
The Energy Investment Deduction program allocates €432 million in taxation deduction for the installation of heat pumps, batteries, or solar panels.
Published on January 2, 2025
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The Dutch government has announced a significant increase in funding for energy-efficient investments for businesses in 2025, allocating €431 million, a €172 million rise from 2024. This initiative, part of the Energy Investment Deduction (EIA) program, encourages sustainable economic growth and CO2 reduction. Eligible businesses can deduct 40% of investment costs from their taxable income by investing in technologies listed on the Energielijst.
The 2025 Energielijst sees updates, including new requirements for heat pumps and the inclusion of iron fuel boiler systems to replace gas boilers. Notably, smart grid and net balancing investments have been removed due to rapid market developments. This funding boost reflects the government's commitment to promoting socially responsible entrepreneurship and supporting the transition from fossil fuels to sustainable energy sources.
The increased budget represents a significant 66.409% increase from 2024's allocation, with further growth planned to €460 million in 2026. This expansion of the Energy Investment Deduction (EIA) scheme offers businesses an average tax advantage of 10% on their qualifying investments. Under this program, companies can deduct 40% of their investment costs from their fiscal profits, making sustainable technology adoption more financially attractive.
Expanded eligibility and updated requirements
The 2025 program introduces essential changes to accessibility requirements. Solar panel installations no longer require connection to small-consumer connections (maximum 3 x 80 ampere), opening opportunities for businesses with more extensive power connections. Additionally, companies investing in heat pumps for buildings must now meet higher Seasonal Coefficient of Performance (SCOP) requirements, ensuring greater energy efficiency. The program has also adjusted maximum investment amounts for insulation in existing structures to account for rising market prices.
Renewable energy production grew by 11% in 2024
Driven by solar and wind energy, Dutch renewable power generation increased by 11% in 2024, as green energy was behind 54% of the total power production.
Innovation in sustainable technologies
The iron fuel boiler system is a notable addition to the 2025 Energielijst, representing a significant step forward in the energy transition. This innovative technology offers a sustainable alternative to gas-fired boilers. However, some technologies have been removed from the list, including investments in smart grids and network balancing through active installation control, as these have achieved payback periods of less than five years, making them commercially viable without support.
Accessibility and implementation
The EIA is available to all entrepreneurs subject to income or corporate tax, including government organizations and tax-paying associations. To facilitate the application process, entrepreneurs can easily verify their investment eligibility through an online tool that provides access to the complete Energielijst 2025. Upon submission, applicants receive prompt application confirmation, typically within hours.