SDE++

The SDE++ (The Sustainable Energy Production and Climate Transition Incentive Scheme) provides multi-year operating subsidies for certain climate investments. These are installations for large-scale renewable energy generation and/or CO₂ reduction. These must be projects of a certain size. Examples include projects with a large scale grid connection, special permits and a feasibility study for the plans.

There are five submission phases, which are opened on the basis of successive subsidy intensities. Applicants are primarily ranked on a first-come, first-served basis. On the day that the SDE++ budget is exhausted, successful applications are selected on the basis of their subsidy intensity.

Submission phases for the SDE++ tender 2026

The total budget for the 2026 tender is 8 billion euros. This total budget comprises three sub-budgets of EUR 750 million, covering projects in three areas: low-temperature heat (LT), high-temperature heat (HT) and molecules.

Technologies classified in the three domains are eligible for the first draw from their sub-budget. If the sub-budget is exhausted and the project does not fall within the range of allocated subsidy intensities, it will automatically be added to the main tender (‘remaining budget’) and will compete again for the budget on the basis of subsidy intensity.

The decision on the choice of subsidy intensity and phase requires strategic insight, as the (sub)budget may be exhausted at some point. In this process, applicants are still maximised at a certain subsidy intensity based on their published category values.

Tip: PNO Innovation’s SDE++ Intelligence Report can help you determine a bidding strategy: Market intelligence study helpful for SDE++ application

The SDE++ changes for 2026

The final SDE++ 2026 regulations were published in the Staatscourant on 3 August 2026. The 2026 round implements the category designation regulation and related amendments to the general implementation regulation. Key changes include:

• New and extended categories: while most categories remain broadly in line with the previous SDE++ round, the final 2026 regulation confirms several new or adjusted categories, including solar PV along roads and rail infrastructure, lifetime extension for B-wood boilers of at least 5 MW for the heat component, additional high-temperature heat pump categories, new variants for process-integrated heat pumps, CCS linked to low-carbon hydrogen from residual gases, and direct air capture (DAC) in combination with CCS and CO₂ infrastructure.
• Categories not opened in 2026: several categories are not opened in the 2026 round because of insufficient viable project potential, inefficiency or impracticability. This includes selected categories under solar PV, hydropower with a head below 50 cm, composting and bio-LNG from mono-fermentation of manure.
• Additional category-specific conditions: the final 2026 framework introduces or clarifies additional requirements for specific categories, including solar PV-related CO₂ footprint and nature-inclusivity requirements, as well as clarified permit-submission requirements for certain CO₂ capture, utilisation and storage applications.

RVO continues to monitor key factors that may affect SDE++ project economics. Future project economics may be influenced by external developments such as grid tariff adjustments, ETS2 carbon pricing and restrictions on the international trade of Guarantees of Origin.

The final SDE++ 2026 category designation regulation and the related amendment to the general implementation regulation have now been published. The application period runs from 27 October 2026 at 09:00 until 26 November 2026 at 17:00.

How much does the SDE++ subsidy yield?

The SDE++ reimburses the difference between the cost price of the sustainable energy or the CO₂ emissions to be reduced and the (potential) revenues. The subsidy is granted over a period of 12 or 15 years. The number of years you receive the subsidy depends on the technology you use. The amount of the subsidy depends on the technology used and the CO₂ reduction you ultimately achieve with it:

• Phase 1 – For projects with a subsidy intensity of up to EUR 75 per tonne of CO₂
• Phase 2 – For projects with a subsidy intensity of up to EUR 150 per tonne of CO₂
• Phase 3 – For projects with a subsidy intensity of up to EUR 225 per tonne of CO₂
• Phase 4 – For projects with a subsidy intensity of up to EUR 300 per tonne of CO₂
• Phase 5 – For projects with a subsidy intensity of up to EUR 400 per tonne of CO₂

An SDE++ application round consists of five phases. During the first phase, you can only apply for subsidies for projects with a subsidy requirement up to a certain subsidy amount per tonne of CO₂. During the subsequent phases, this maximum subsidy amount per tonne of CO₂ is gradually increased. You may also submit projects with a subsidy requirement lower than the maximum set for the technology in question. This encourages market parties to submit projects at a lower price, thereby increasing their chances of receiving a subsidy.