SDE Made Easy with a Few Simple Graphics

From the moment your production facility becomes operational, you need continuous, independent insight and control over the development of your SDE+(+)-project. Large project developers often handle this themselves, while smaller projects often rely on the installer or energy advisor.

For each SDE subsidy granted for solar and wind energy, we provide an expectation throughout the duration of your subsidy agreement. If you grant us access to your measurement data, we provide you with a clear overview of the expected subsidy and the actual project returns.

This provides you with a reliable, ongoing insight into the results and performance of your asset(s). Based on this, you can, for example, make timely decisions to suspend or reapply for your SDE advance payment when market prices are high or low.

This insight is also crucial for effectively implementing curtailment, which involves shutting down solar panels when generating electricity becomes too costly due to an overloaded grid.

Enhanced Insight

Due to the fragmented nature of the electricity market with numerous interconnected components, errors can occur quickly. Therefore, it is crucial to independently verify the reconciliation accurately. With Encast’s services, you not only gain continuous insight but also the ability to promptly and independently verify the reconciliation.

In 2022, the market price was significantly high, granting SDE compensation only to installations with an SDE approval predating 2012. In cases of negative prices, curtailment is best applied immediately.

In terms of volume, when considering curtailment, you must take into account the annual production permitted by the SDE, the base amount, and the expected correction amount. If your installation generates an excess, implementing curtailment becomes an appealing option in times of negative prices.

About the SDE Compensation:

The SDE compensation consists of several key elements:

• The base amount and base price, which remain fixed for the entire duration.
• The banking mechanism, allowing you to carry forward surpluses or deficits to subsequent years under certain conditions.
• The provisional correction amount and provisional GVO (Guarantee of Origin) value determined in September before the start of each calendar year, and the final correction amount and final GVO value determined in April of the following year.

Your allocated SDE provides a guaranteed yield per MWh throughout its fifteen-year duration, applicable to both solar and wind energy. Typically, SDE subsidies are applied for before the commencement of a project. The amount of the SDE compensation is linked to the market price. If the market price is low, you are entitled to more SDE subsidy for your generation. If the market price is high, your entitlement to SDE subsidy may be reduced or eliminated.

Every year, a reconciliation takes place for the previously prepaid advances, often resulting in significant amounts due to differences between the final correction amount and actual production.