In a new proposal, the government wants neighbors of solar power plants to have their current neighbor compensation doubled. But according to Klimamonitor, an internal memo shows that it is not known whether the compensation will actually benefit local support.
"It is unclear whether increased industry-financed neighbor compensation for solar cell plants will have an effect on local support for renewable energy plants on land," according to the media outlet in the memo from the Ministry of Climate, Energy and Utilities from September 15, 2025.
At the same time, the ministry acknowledges that higher renewable energy compensation can weaken the developers' finances and thus slow down green expansion.
The same warning was issued by the business community in connection with the launch of proposal on Wednesday.
Ulrich Bang, deputy director for climate, energy, environment and construction at the Danish Chamber of Commerce, similarly warned against imposing new costs on developers:
- The government's proposal imposes new costs on those who build solar parks, which is effectively an extra tax on these companies. It is hardly the way to more green electricity, so it is not a rose that has grown in our garden, says Ulrich Bang.
The same warning came from Green Power Denmark, which also warned against imposing more costs on companies:
- The pain threshold has been reached for many projects, and it is not the right move to increase the developers' payments to their neighbors. The government has not yet investigated the effect of the current rules for compensation to neighbors, and opinion polls show that it is not popular resistance that is the real problem, says Camilla Holbech, director of renewable energy production at Green Power Denmark.
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