Hefty fines threaten companies that do not generate their own electricity

Hundreds of Flemish companies and government institutions must install solar panels before the summer of next year or risk a hefty fine. For more complex installations it will be tight to meet the deadline, installers warn.

An estimated 2,500 business premises and 1,300 government buildings, schools and healthcare institutions must generate green energy themselves by June 30, 2025. Flemish Energy Minister Zuhal Demir (N-VA) announced the measure two years ago. At that time, two-thirds of those roofs did not yet have solar panels.

Companies are subject to the obligation if they consume more than 1,000 megawatt hours per year. That roughly corresponds to the annual consumption of almost 300 families. For public institutions – from governments to schools, residential care centers and hospitals – the bar is 250 megawatt hours.

“Building owners must keep an eye on whether they are subject to the obligation – now or in the future,” warns Yannick Van den Broeck, energy and climate advisor at the employers’ organization Voka. ‘The Flemish energy agency VEKA will not write to them.’

The obligation could lead to bottlenecks at the installation companies. They have recently noticed an increase in the number of quotation requests and are preparing for a lot of work, with a peak in the first half of next year.

A simple installation on the roof can be realized in a few months. “But if there is more to it, the lead time can increase to a year,” says Jannes Soutaer, the manager of ExtraPower. ‘So the message is not to wait any longer. Especially if a net reinforcement or roof work is required, it is high time to take action.’

‘We will always do our utmost to be ready on time, but we are also dependent on third parties who, for example, carry out stability studies or inspections. Someone from the grid operator Fluvius must always come by before the installation is compliant,” says Benoit Stroobandt of the solar panel company Ministry of Solar.

The consequences for companies or institutions that do not comply are significant. Anyone who misses the deadline risks a fine of 400 euros per missing kilowatt peak, which can amount to millions of euros for large installations. For comparison: today you can have a solar roof installed for less than 500 euros per kilowatt peak.

Van den Broeck hopes that the fines will be dealt with ‘pragmatically’, for example by sparing companies that for one reason or another do not meet the deadline. Whether that request is granted will depend on the Minister of Energy in the next Flemish government.

Not only are the fines high, they also do not exempt companies from the obligation to generate green energy, Van den Broeck notes. “They are not lump sums.” To avoid additional sanctions, they must still comply.

How many solar panels a company or institution must install depends on the size of the roof. At least 12.5 watt peak per square meter of horizontal roof surface must be installed by the middle of next year. The bar will be set at 18.75 watt peak in 2030 and at 25 watt peak in 2035.

“We recommend looking ahead and not just doing the minimum for 2025 now,” says Van den Broeck of Voka. Yet Stroobandt notes that not all customers are looking beyond 2025. “Due to the decreased energy prices, this is sometimes less high on the agenda for business leaders,” he says. ‘Still, it is a good time to invest. Panel prices are at a historic low.’

For those who find it difficult to realize a classic sunroof, some other solutions are possible. Think of panels on the ground, on the facade, on carports or even floating on a basin. But such projects require permits, which means the project takes more time, says Soutaer.

Other possible alternatives are wind turbines or a cogeneration plant fired with biomass. But these are not really realistic in practice, because permit procedures often take years.

Furthermore, the obligation can also be met by installing solar panels on other, nearby buildings connected by a direct cable or on the roofs of sister companies, or investing in another project that generates green energy. The possibilities for exemptions from the obligation or postponement are limited.