A better future with GoOs

Guarantees of Origin (GoOs) or green certificates are more popular. Generating sustainable energy is still financially rewarding with the SDE scheme, but that will stop in a few years. My advice to the farmer is to look for alternatives, such as GoOs. You can buy and trade them.

Author Stijn Haarhuis is a specialist in Sustainable Energy at DLV Advies

GoOs are certificates that electricity suppliers use to certify the supplied electricity to green† This flow is tradable and therefore attractive for both the supplier and the end user. They can be traded by energy companies and companies that are registered as traders. GoOs also guarantee that the energy generated is used in a renewable manner. In this way, the consumer receives the promised green energy, provided he has requested this from the supplier.

SDE subsidy ends
If you are going to produce green energy, the Sustainable Energy Stimulation (SDE) scheme is indispensable. To solar panels or to install windmills, farmers can claim the subsidy. However, this arrangement will stop, probably within the next 15 years. That is relatively short if you want to earn back your investment in solar panels and/or wind turbines.

This means that the farmer has to look for alternative revenue models. A good alternative are GoOs or green certificates. I would go along with that as a farmer. It is good to invest in sustainable energy; especially at a time when we are climate agreement must comply. And if that must be financially feasible, then also invest in GoOs.

Major customers
You can apply for green certificates yourself and therefore also trade them, so that you can earn from them. In the Netherlands, Certiq is responsible for issuing and guaranteeing all GoOs. This grid operator links green energy production to GoOs and issues it digitally.

For every generated Megawatt hour (MWh) (or 1.000 kWh consumed by the end user), Certiq issues 1 GvO. This quickly pays off for large customers (with 3 x 50 A connections), who have invested heavily in solar panels or wind turbines. From a financial point of view, applying for GOs only makes sense for large companies.

GoOs now cost approximately €6 each (July 2018, via WISE Nederland). It is precisely now that it is attractive to invest in GOs, because the price of GOs has risen in recent years and it is expected that this will continue to rise. Therefore, now is the right time to trade the certificates.

Roof rental with GoO
For farmers without a big budget, a roof rental construction is attractive. This can be done well in combination with green certificates. The farmer receives compensation for the make available off his roof. The certificates he receives (after generating and consuming the solar energy) go directly to the tenant of the roof. In this way, the farmer has fewer financial burdens and can reinvest the money received. In this way, he immediately resells the GoOs.

In short: think before you start and make a decision today how you can earn (back) on sustainable energy in other ways (than with subsidies).

DLV Advice

DLV Advies is an independent consultancy for entrepreneurs, companies and organizations in the agricultural sector. In addition to individual advice, DLV supervises study groups and is active in various Agri&Food projects.

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