2025 Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++)

The government is expanding support for sustainable energy production through a new round of the Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++), launching on 7 October 2025 with a budget of EUR 8 billion. The scheme aims to reduce reliance on fossil fuels by encouraging investments in solar energy, biogas, geothermal energy, and industrial heat pumps, among other technologies. It functions as a market-based subsidy, compensating only for the unprofitable portion of projects. Additional incentives will be provided in 2025 for projects that ease pressure on the electricity grid, such as electric boilers operating off-peak hours and vertical solar panels that distribute power generation more evenly.

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