Battery storage grant

Grid congestion with solar panel inverters failing, negative energy prices and the approaching end of net-metering or with feed-in compensation make a battery increasingly interesting. However, batteries are expensive and for individuals there is no subsidy as we know it for solar panels (0% VAT). As a self-employed person, however, there are tax opportunities. Thanks to some tax advantages, you can buy a battery storage system at a considerably lower price.

PARTICULAR

As a private individual, there are no additional benefits to be gained when purchasing a battery. Except for the solar panel part of the installation, VAT is due on the remaining part. Subsidies do not exist (yet). However, sustainability loans at attractive interest rates are available at the local (municipal) level. Inquire with your municipality.

COMPANY

As an entrepreneur, there are tax advantages that can make the purchase of a battery storage system much more interesting. The combination of depreciation, the KIA and the EIA can save you a lot of money. The condition is that you have your own business and that you are liable for income or corporate tax in the Netherlands. We list all the points;

1) SALES TAX (VAT)

The sales tax or VAT is fully reclaimable from a battery storage system, provided, of course, that as a business owner you are subject to VAT.

2) DEDUCT THE INVESTMENT FROM PROFITS (DEPRECIATION)

As an entrepreneur, you may deduct the cost of an investment from the profit you make in 5 years. So that means you can deduct 20% of the investment amount from profits each year.

3) SMALL-SCALE INVESTMENT DEDUCTION (KIA)

The small business deduction (KIA) is a tax deduction for small investments in business assets. In 2023, you are eligible for the small business deduction if you invest between €2,601 and €353,973 in business assets for your own business.

The amount you may ultimately deduct from your profits depends on the total amount you invested in your business in a fiscal year. Typically, this will amount to a benefit of an additional 28% of the purchase value that you may deduct from your profits. This percentage applies up to an investment of €63,716, above which there is a fixed amount of €17,841 which you may deduct from profits.

The exact rules are as follows:

Source: tax authorities

4) ENERGY INVESTMENT DEDUCTION (EIA)

The EIA offers entrepreneurs another additional benefit. The (EIA) is a tax scheme offered by the Dutch government to entrepreneurs who want to invest in energy-efficient techniques and renewable energy. When you invest in a battery storage system that meets the requirements of the , you can deduct 45.5% of the purchase value from your profit.

For battery storage systems, there are two codes for which a battery may qualify: codes 251118 [W] and 260101 [W]. The energy list describes these as follows:

• 251118 [W]
  Battery for storage of sustainably generated electricity
  Intended for: stationary storage of electrical energy,
  and consisting of: battery with a capacity of at least 5 kVA and a capacity of at least 15 kWh, (possibly) power/voltage converter, (possibly) control system. Batteries of (internal) means of transportation are not eligible.
• 260101 [W]
  Storage of electrical energy Intended for: stationary storage of excess electrical energy by automatically turning on or off depending on an electrical submarket, and consisting of:
  a. Lithium battery, inverter, control electronics, optimization software;
  b. NaS battery, inverter, control electronics, optimization software;
  c. Redox flow battery, inverter, control electronics, optimization software;
  d. saltwater battery, inverter, control electronics, optimization software.

Optimization software refers to the software needed to utilize excess renewable energy to store it, thereby reducing the use of fossil fuels (primary energy). A battery/battery that is not linked with software to an electric submarket does not qualify. The software of the Blauhoff smart lan AI meets this standard.

CALCULATION EXAMPLE SUBSIDY BATTERY STORAGE SYSTEM

Suppose you want to make an investment of €12,000 excl VAT in a battery system.

• Sales tax is settled directly with the return.
• The purchase price (€12,000) to be depreciated over 5 years, deducted from profits.
• From the EIA, you can deduct 45.5% from profits, which amounts to €5,460.
• With the KIA, you can deduct another 27% from profits, amounting to €3,240.

This means that for an investment of € 12,000, a total of € 20,700 can be deducted from profits and the VAT on € 12,000 = € 2520 is directly deductible! So this means a deduction of 170%. With a tax burden of 50%, in this example, this battery system means a net cost of € 1,650.00. This is then apart from what can be saved or earned with a battery system such as;

• Savings on flat rate by application of "Peak-shaving"
• Purchasing electricity cheaper by using Dynamic Rates.