25.07.2023

Draft law: Legal right of a tenant or homeowner to install a balcony photovoltaic system

In times of rising electricity prices, the demand for solutions to keep these costs as low as possible is also increasing. This increasingly includes the purchase of a photovoltaic system for self-installation. To prevent lengthy discussions with landlords or other members of the homeowners' association, a draft bill from the Federal Ministry of Justice now proposes a legal right to install so-called balcony power plants.

Current legislation stipulates a legally mandated feed-in limit of 600 watts for solar power generated on balconies, and in some cases requires registration in the Market Master Data Register (MaStR) of the Federal Network Agency and with the distribution network operator. Owners and tenants do not have a general right to operate a balcony power plant.

In many cases, the rental agreement already answers the question of whether solar panels on facades or balconies are permitted or require approval, and what conditions apply to such approval. This includes, for example, installation by a qualified professional or proof of the balcony's load-bearing capacity. Approval is also required if a new electrical outlet needs to be installed or the electricity meter replaced for the system's operation, as this involves modifications to the electrical installation.

Whether landlords need to be informed about a solar power system or give their consent depends largely on where the modules are installed. It is essential to speak with the landlord and obtain written permission before purchasing the system. If the system is mounted on the balcony railing, the exterior wall, or the roof, it constitutes a structural alteration. In this case, the landlord's consent is undoubtedly required. As part of proper management, the homeowners' association determines the regulations that apply to the community at the owners' meeting. While the owners' meeting cannot decide whether an individual may install a balcony solar power system, it can, for example, establish regulations regarding uniform installation or the usable areas. Installation without a prior resolution by the community is illegal.

In legal terms, it is also disputed whether a balcony photovoltaic system constitutes a visual impairment of the facade, which in turn would be considered a structural alteration and thus trigger a requirement for consent. In such cases, a landlord or owners' association can only demand removal without consent if there is a valid, objective reason. Aspects such as the safety of the installation and its glare effect on neighbors should be considered in any case.

The draft bill proposes amendments to the German Civil Code and the Condominium Ownership Act (WEG):

  • In German tenancy law, specifically Section 554 Paragraph 1 of the German Civil Code (BGB), the list of structural modifications to which tenants have a right to be permitted is to be amended accordingly. This would eliminate the need to justify an application for installation to the landlord or the owners' association.
  • Plug-in solar devices should be included in the list of structural alterations privileged under Section 20 Paragraph 2 of the German Condominium Act (WEG), to which condominium owners have a right.

Because a formal resolution from the owners' association is still required for condominium ownership, and these meetings often only take place once a year, the draft law also provides a way to expedite the process. In the future, it should be possible to hold owners' meetings entirely online. For this to happen, 75 percent of the owners present will be able to decide to hold virtual meetings, limited to a maximum of three years. This should make it easier to hold a meeting at short notice, for example, to approve a balcony power plant.

The details of the planned change are still being monitored. Lawyer and notary Simone Krziwanek and is happy to answer any questions you may have.