On 16 May 2024, the core elements of the Solar Package I came into force. Among other things, the new legal regulation is intended to incentivise further PV expansion through the new model of communal building supply, the expansion of the existing tenant electricity model to commercial properties and the regulations on the so-called “balcony power plants” and to enable broader participation in the climate transition.
Innovations in the tenant electricity model (§ 42a EnWG)
What’s new?
With the Solar Package I, the scope of application of the EEG subsidy via the tenant electricity surcharge was expanded by amending Section 21 (3) EEG 2023. Previously, the tenant electricity surcharge in the tenant electricity model was only subsidised for the supply of end consumers in the residential building or residential buildings in the neighbourhood if the PV electricity was generated with PV systems installed in, on or on residential buildings. With the Solar Package I, the restriction to residential buildings was lifted, so that subsidies are also provided if PV systems are installed in, on or on non-residential buildings and the supply to Leitz consumers is made in non-residential buildings. With regard to non-residential buildings, however, there is also a special regulation for subsidies.
In the course of this, Section 42a of the EnWG was also amended, which results in requirements for tenant electricity contracts in the EEG-subsidised tenant electricity model. This provision now also extends to matters relating to non-residential buildings. For example, tenant electricity contracts with end consumers in both residential buildings and now non-residential buildings automatically end with the return of the rooms when the tenancies are terminated.
As part of this, the regulations applicable to co-electricity contracts with consumers were also adapted to the general terms and conditions of Section 309 No. 9 of the German Civil Code; these contracts can have a term of two years instead of the previous one.
What remains the same?
EEG funding will continue to be provided only if the PV electricity is not routed through a grid.
In the EEG-subsidised tenant electricity model, the tenant electricity supplier must also continue to ensure the full supply of electricity to tenants, even if no PV electricity can be supplied.
The regulations for the protection of tenants of residential property continue to apply unchanged, but their application has not been extended to commercial tenants. For example, the fundamental prohibition of coupling tenant electricity and residential leases remains unchanged, as do the exceptions in this regard, in particular for rental agreements for apartments for temporary use (e.g. retirement and nursing homes and student residences). As before, the price cap of 90% of the basic supply tariff applicable in the respective grid area only applies to tenants of residential premises.
Who is affected?
The changes are aimed directly at companies that operate or want to operate PV systems; the EEG subsidy, also with regard to non-residential buildings, is intended to serve as a (further) incentive for them to build and operate PV systems. Indirectly, of course, building owners as landlords and tenants should also be able to participate in the energy transition and benefit from it.
The new building electricity model (§ 42b EnWG)
What’s new?
With the solar package I, the model of “joint building supply” was included in the energy industry law as a further concept for the generation-related supply of end consumers in addition to tenant electricity with the new § 42b EnWG.
The following applies (in particular) to this new building electricity model:
- The PV systems must be located in, on or on the same building or an ancillary system of this building in which the electricity is used by end consumers. This means that the PV electricity must be used directly in the building or the ancillary system – without passing through a grid – whereby intermediate storage is possible. The scope of application includes, among other things, the supply of tenants, apartment or co-owners and lessees of residential and non-residential buildings.
- In contrast to tenant electricity, the operator of the PV system does not have to provide full supply to the end consumers, i.e. he does not have to supply electricity to the participants in the building electricity model if and to the extent that PV electricity is not generated or is not generated in sufficient quantities. However, he must inform the end consumers about this. End consumers are free to choose the electricity supplier that covers the demand beyond PV electricity.
- The electricity purchased by end consumers must be measured every quarter of an hour.
- There is no subsidy via a tenant electricity surcharge under the EEG – even in contrast to the tenant electricity model.
- Participation in the building electricity model requires a building electricity usage contract between the operator of the PV system and the (respectively participating) end consumer. In the case of condominium owners’ associations, the building electricity usage agreement can be replaced by a resolution in accordance with the Condominium Act.
- In principle, the same regulations apply to building electricity usage contracts for the protection of residential tenants (such as the prohibition of coupling rental and building electricity use contracts) and consumers (such as the regulations on the term of the contracts).
- The law contains various requirements for the building electricity usage contract and its processing, including:
- The contract shall provide for the right of the participating end consumers to use, i.e. to purchase, the PV electricity in accordance with a distribution key to be agreed. The distribution key determines the (percentage) share of the electricity generated in the PV system that the end consumer may use.
- End consumers and operators of the system can agree on a fee and its amount for the use of the electricity. In contrast to the EEG-subsidised tenant electricity model, there is no provision for a price cap.
- Upon termination of the tenancy, the building electricity usage contract also ends with the return of the rooms.
Who is affected?
Here, too, the regulation directly affects those who build and operate a PV system and want to market the PV electricity. Indirectly, however, all portfolio holders and tenants or users of the buildings are affected.
Accelerated expansion of balcony power plants
The legislator also wants to make it easier to use the so-called “balcony power plants” with the Solarparket I. These PV systems are also referred to as “plug-in solar devices” or “plug-in solar systems”. In the EEG, they are defined as devices consisting of one or more solar systems, an inverter, a connection cable and a plug for connection to the final circuit of an end consumer, Section 3 No. 43 EEG 2023.
What’s new?
Several simplifications apply to plug-in solar devices with a total installed capacity of up to 2 kilowatts and a total inverter output of up to 800 volt amperes that are operated behind the point of consumption of an end consumer. These devices are to be used for their own use – a (subsidized) grid feed-in is not planned.
- Like all PV systems, these plug-in solar devices must be registered in the market master data register. Since April 1, 2024, however, the requirements for registration have been comparatively lower. Operators will then only have to enter a few details about their balcony power plant in addition to their personal details.
- In principle, plug-in solar devices do not have to be reported to the grid operator. Rather, the balcony power plants can be put into operation without registration and grid compatibility assessment with the grid operator and also without a new bidirectional meter having to be installed immediately. The EEG contains transitional provisions for metering point operation, § 10a EEG.
What else is planned?
According to a draft law currently still under discussion, § 554 (1) BGB is to be amended. According to this, tenants are to have a right to consent to the installation of a plug-in solar device if there are no conflicting interests of the landlord. This includes PV systems for use on a terrace or balcony. Corresponding regulations are to be included in the Condominium Act.
Who are the addressees of the regulations?
This part of the Solar Package I is ultimately intended to enable all end consumers to participate easily in the energy transition. Accordingly, the topic of balcony power plants is also relevant for land, building or apartment owners and in the relationship between landlords and tenants. Of course, grid and metering point operators are also indirectly affected.
