Stimulation of sustainable energy production and climate transition (SDE++)

The Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) provides subsidies to both companies and non-profit organisations that are either reducing their CO2 emissions on a large scale or generating renewable energy. Not only sustainable energy generated by solar power, but also biomass energy, geothermal heat, on and offshore wind energy, and hydropower are eligible for the SDE++. The subsidy applies to the amount of energy generated over several years, and works with annual application rounds. Overall, the scheme aims to stimulate the production of sustainable energy and the climate transition. Previously the scheme was focused solely on generating renewable energy, but from the 2020 amendment onwards projects that reduce their CO2 emissions were also included in the scheme (e.g. solar panels). For 2023 the budget was €8 billion, in 2024 a budget of €11.5 billion is available for all phases and categories combined.