Breakthrough without subsidies? PV business model experiments in the Netherlands

• Published in: Energy policy Vol. 56; pp. 362 - 370
• Main Authors: Huijben, J.C.C.M., Verbong, G.P.J.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.05.2013; Elsevier; Elsevier Science Ltd
• Subjects: Applied sciences; Business; business enterprises; Business model experiments; Business models; Communities; Dutch PV market; Economic data; Economic planning; Economic policy; economic sustainability; Electronics industry; Energy; Energy economics; Energy policy; Exact sciences and technology; General, economic and professional studies; Government subsidies; interviews; Lobbying; Management; Metering; Natural energy; Netherlands; Photovoltaic cells; Planning methods; Regulation; Solar cells; Strategic management; Studies; Subsidies; Subsidies (financial); Support systems; uncertainty; Up scaling; Western Europe; Netherlands; Up scaling; Dutch PV market; Business model experiments
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2012.12.073

Despite a lack of steady governmental support for PV in the Netherlands over the last decade, from 2008 onwards an increased number of initiatives started experimenting with new business models for PV. Though absolute numbers of installed capacity are still low, this is a promising sign. In this article we aim to contribute to the understanding of these developments by using insights from both business model and transition studies literature (i.e. Strategic Niche Management). By performing a literature study and a series of interviews we found three main types of business models: Customer-Owned, Community Shares and Third Party. Financial viability of these was found to be heavily dependent on net metering regulations which are surrounded by uncertainty and struggle about its meaning and application. Also, the overall PV niche is maturing. We found several local and national organizations lobbying for expansion of the space for PV business model experiments and enabling knowledge sharing and networking between initiatives. Furthermore, a number of regime players is getting involved in the PV niche. Considering the current economic turndown and related subsidy cuts in many other countries we believe the Netherlands, with its relatively poor and unstable support system, could serve as an example. ► From 2008 increased business opportunities for PV in the Netherlands. ► Business models: Customer Owned, Community Shares, Third Party. ► Focal point: net metering regulations. ► Maturing of PV niche: networking, knowledge sharing and lobbying.