On July 4, 2024, the German Bundestag (lower house of parliament) approved a landmark bill (20/9890) proposed by the federal government, aimed at facilitating the installation of plug-in solar systems on balconies and simplifying the use of renewable energy facilities. The bill, which has undergone revisions by the legal committee (20/12146), represents a significant step towards Germany's energy transition goals.  However, it is important to note that these reforms must still pass through the Federal Senate (Bundesrat) before they can officially take effect.

Core Elements of the New Law

Simplified Installation Procedures: The new law addresses a major hurdle faced by apartment owners and renters who wish to install solar panels on their balconies. Previously, such installations were often considered structural changes requiring the consent of a majority of apartment owners or landlords. The new law includes balcony solar systems in a special catalog of permitted measures, allowing installation without undue restrictions unless there are compelling reasons such as fire safety or accessibility concerns.

Transfer of Personal Easements: The law also enables the transfer of personal easements related to renewable energy facilities. This enhancement in land use flexibility encourages more efficient allocation of resources for renewable energy projects, further boosting their implementation.

Market Impact and Potential

With over 50% of Germans renting their homes, the new law is expected to spur a surge in the installation of balcony solar systems, often referred to as "balkonkraftwerk" or plug-in solar systems. These systems, consisting of one to two photovoltaic modules and a small inverter, can be easily mounted on balcony railings and connected to household sockets. They generate direct current (DC) which is converted to alternating current (AC) by the inverter, feeding electricity into the home's electrical system.

The popularity of balcony solar systems is driven by their affordability (priced around 400-600 euros per system, excluding VAT and often subsidized by local governments), ease of installation, and relatively short payback periods of 2-4 years. Although they may not fully cover a household's daily energy consumption, they offer an effective way to contribute to environmental sustainability while reducing electricity bills.

"The right to harvest solar power is thus legally enshrined. This is tangible climate protection and is likely to further increase acceptance of the energy transition," emphasized Carsten Körnig, the head of the BSW solar power association, in a statement.

The impending impact of these changes is particularly significant in a country where over half of the population resides in rented accommodations. They are also expected to aid Berlin, the capital city, in meeting its ambitious target of sourcing 80% of its energy needs from renewable sources by 2030.