SDE Insight
SDE made easy in a few simple graphs
Your energy advisor in most cases takes care of the whole SDE application process. But once your production facility is operational you need ongoing and independent insight and control.
Your available SDE is allocated to a period of 15 year (solar and wind) and gives a guaranteed yield per MWh for that period. The SDE compensation is linked to the market price. When the market price is low, you are entitled to a higher SDE subsidy for your yield, when the market price is high, you are entitled to less or even no SDE subsidy. This subsidy is separate from the monthly payments. Settlements will take place afterwards.
The SDE compensation consists of several elements. Important elements are:
- The base amount and base price. These are fixed for the entire period
- The banking mechanism. Possible surpluses or shortages can be brought over to future years under certain conditions.
- The preliminary correction amount and the preliminary GVO** value that is communicated for the new year in September and the final correction amount and the final GVO final that will be communicated in the following year in April.
Every year, you will receive a settlement of all paid advances. This often concerns high amounts because the definitive correction amount deviates, but also because of deviations in actual production. Because of the electricity market is fragmented, mistakes occur frequently. Therefore, it is important to check the settlement yourself. With the data provided by Encast you can independently check the outcome.
For each SDE decision solar and wind (on land) we will give you an expectation of the banking during the period of your decision. When you have granted us access to your actual yield/consumption, we will provide an overview with both expected and realized. On this base, you will have proper insight in the banking and performance of your asset.
This insight is also important to correctly adjust, for example the curtailment. Within the annual allowed production according to the SDE, you will have to check your base amount and the expected correction amount for the curtailment. When you have a good year and are producing more than expected, you only look at the market price, and you will want to disengage when this is negative. However, this should never fall below the expected own consumption.