Why a PV system is worthwhile for the homeowners associationLink to this section
The increasing popularity of PV systems is no coincidence: they offer numerous advantages for homeowners' associations.
Fast payback: The investment in a solar system typically pays for itself within 10-12 years. After that, you'll continue to save for many years.Choosing a supply model that allows at least some of the solar power generated to be used by residents will result in long-term financial relief. Reducing electricity consumption from the public grid will save costs.The WEG makes an important contribution to climate protection. PV systems are characterized by low CO2 emissions, making them one of the most environmentally friendly energy sources.If the solar power generated is fed into the public grid, the electricity grids also benefit. Self-consumption reduces the strain on the grids.Independence from rising electricity prices is another advantage. The more electricity you generate yourself, the less dependence on the public grid.In combination with modern heating systems, solar power can also be used to generate heat. This offers a cost-effective addition to conventional heating systems, especially in times of rising energy prices.Flexibility in roof direction:Not only south-facing roofs are suitable for solar systems. East-west facing roofs are also well-suited, as the sun shines on the modules for a longer period of time.Modern technology: Thanks to technological advances, solar systems can generate electricity even in bad weather.Sustainability: Solar power is low in emissions and contributes to climate protection.Preservation of value:A PV system can increase the value of a property.Last but not least, photovoltaic systems are extremely durable. If they're of good quality, maintenance costs are expected to be low.
Summary PV system: Owners’ association benefits
A PV system is more profitable than ever before. This is due to the falling costs of solar modules and rising electricity prices. With photovoltaics on the roof, the condominium association becomes (at least partially) its own electricity supplier, meaning it needs to purchase less or no electricity from the public grid. The more self-generated electricity is generated, the more independent the condominium association becomes from the public grid. Any price increases then no longer affect the owners. In addition to the potential for savings, solar energy also contributes to environmental protection, because PV systems do not release climate-damaging CO2 when producing their own solar power.
How do you find consensus in the condominium association?Link to this section
A lack of consensus within homeowners' associations is a major reason why many apartment buildings don't have solar systems. High investment costs and the associated financial burden deter many landlords from installing a solar system.
The decision to install a shared PV system should always be carefully considered within your homeowners' association. It's important to openly discuss the benefits and potential challenges. The following aspects can help:
Cost breakdown:A transparent presentation of costs and potential savings can help to allay concerns among individual homeowners.Life cycle:The long-term benefits of the investment should be emphasized.Sustainability:Contributing to climate protection can serve as a common goal.Funding opportunities:Even if government funding has decreased, there may be local or regional funding programs available.Professional advice:An independent energy consultant can help you make your decision.
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Legal situation regarding PV systems: Owners must agree – but not allLink to this section
Before the reform of the condominium association (WEG), the decision to install a photovoltaic system in a condominium association (WEG) faced several hurdles. Since the installation of such a system is considered a structural change to the common property, significantly altering the building's appearance, the consent of all condominium owners was generally required.
However, the 2020 reform of the German Condominium Act (WEG) fundamentally changed this. To advance the energy transition and promote sustainable measures, the decision-making process for structural changes with a sustainability aspect—such as the installation of a photovoltaic system—was significantly simplified.
Today, a simple majority of the owners present is sufficient to install a solar system. This simply means that more yes votes than no votes are required. It is no longer necessary for all owners to agree. This new regulation makes it significantly easier for condominium associations to jointly switch to renewable energy and benefit from the advantages of their own solar system. Regarding the costs incurred through installation, the Condominium Act stipulates that these are borne only by those owners who vote in favor of the PV system.
Important: Both the declaration of division and the community regulations contain provisions for the use of the shared property and may include specific requirements for structural changes. These documents may need to be amended to install a photovoltaic system.
Step by step to your own solar system – A guide for homeowners’ associationsLink to this section
Installing a photovoltaic system is a multi-step process that requires thorough preparation. The basic steps are outlined below.
Step 1: Gathering information and planning the PV system
The installation of a photovoltaic system is a complex project that requires extensive preparation from homeowners' associations. In particular, the selection of the appropriate supply model must be made early on.
To ensure broad support within the community of owners and a solid foundation for collaboration, you should involve all owners in the planning process early on. Open communication and answering any questions are crucial to engaging everyone involved and ensuring a smooth process.
You should clarify the following aspects in advance:
Which of the owners will take over project management?How is the project manager remunerated?How is the billing of electricity costs organized?What tasks does the property management take on?
Another important consideration is the financing of the facility. Various financing models can be used here, such as utilizing existing reserves or taking out loans.
Step 2: Joint decision for the solar system
In the second step, the community of owners must formally approve the construction of the photovoltaic system, its operating conditions, and the type of energy supply.
The required majority depends on the planned financing. For voluntary participation, a simple majority of 51% of those present and eligible to vote is sufficient. If you want to distribute the financing to all condominium owners, a higher approval of three-quarters of all eligible owners is required.
Step 3: Implementation of the project andInstallation of the solar system
Now it's time for the practical implementation: The PV system, which was carefully planned and approved by the homeowners' association, is installed. Once the system is mounted on the roof and connected to the power grid, you as a community can generate your own electricity.
Financing the PV system for the homeowners association: Individual applications to the bank
Financing a PV system usually requires a loan. This can pose a challenge for owners, as banks are reluctant to grant loans to condominium associations. This hurdle is overcome by each owner submitting their own individual application to the bank and individually contributing towards their loan. Based on the individual applications, the bank then verifies whether the condominium association as a whole is solvent and grants subsequent loans simultaneously.
Who bears the costs for a photovoltaic system on the roof of the condominium?Link to this section
In multi-family homes, the installation of a photovoltaic system requires a resolution of the homeowners' association pursuant to Section 20 (1) of the German Condominium Act (WEG). This applies regardless of whether individual owners are disadvantaged by the change. A simple majority pursuant to Section 25 (1) of the WEG is sufficient for this resolution.
The costs for structural changes are generally borne by those owners who have approved the measure (Section 21 (3) of the Condominium Act). Exceptions apply to changes approved by a two-thirds majority or those deemed particularly advantageous by law. In these cases, owners who are unwilling to consent may also contribute to the costs. This principle serves to ensure that the interests of all owners are appropriately considered.
A different regulation applies to solar systems on open spaces. Above a certain size, usually 3 meters high and 9 meters long, a building permit is required. The exact requirements for this are set out in the respective state building regulations.
How to operate and use the solar system most effectively as a WEGLink to this section
Once your homeowners' association has decided to install a photovoltaic system, the question arises as to how this system should be operated and used most effectively. There are various options, each with advantages and disadvantages.
Leasing of the roof area:A simple solution is to lease the roof space to a provider. This provider will take care of the planning, installation, operation, and billing of the electricity. Your homeowners' association receives a fixed lease payment.Partial outsourcing:Your condominium association can also outsource individual tasks such as electricity supply and billing to a service provider.Do it yourself:The most sophisticated option is to operate the property entirely in-house. Your homeowners' association handles all tasks itself, from planning to billing.Full feed-in:Here, all the electricity generated is fed into the public grid and your WEG receives a fixed payment per kilowatt hour.
Which variant is the right one?
The choice of the optimal operating mode depends on various factors:
Expense:How much work does your condominium association want to take on itself?Economy:Which option is more cost-effective for your condominium in the long term?Tax aspects:What tax consequences does the chosen option have for your condominium association?
It's advisable to carefully consider the various options and, if necessary, consult an energy expert. They can assist you as a homeowner in selecting the best solution. Ultimately, the right solution always depends on the individual needs and goals of your homeowners' association.
Do tenants have to purchase the electricity generated?Link to this section
The question of whether tenants are required to purchase the electricity generated by a communal photovoltaic system can be answered briefly: No, they do not. Every tenant is fundamentally free to choose their own electricity provider.
However, self-generated solar power generally offers a financial advantage, as it is usually cheaper than electricity from the public grid. Therefore, as a landlord, you have the option of offering so-called tenant electricity models and selling the solar power to your tenants. This can be beneficial for both parties: The tenants benefit from cheaper electricity, and the landlords can recoup their investment in the solar system more quickly.
To create clarity and avoid potential misunderstandings, it's advisable to discuss the options and terms of electricity supply with your tenants before installing the solar system. Tenants' willingness to purchase solar power is generally quite high due to the financial benefits.
Solar system and taxes: What you need to consider as a homeownerLink to this section
The decision to install a photovoltaic system in a homeowners' association is often influenced by tax considerations. These regulations used to be complex and bureaucratic. But thanks to the new regulations in the Renewable Energy Sources Act (EEG), this has become significantly easier.
Self-consumption in the community
The simplest solution is to use the generated electricity exclusively for shared consumption within the homeowners' association, for example, for elevators, stairwells, or common areas. In this case, no electricity is sold, and the landlord or the association is not considered a business. This eliminates sales and income tax, which makes administration considerably easier.
Electricity supply to residents or feed-in to the public grid
Even if the community supplies electricity to individual apartments or feeds it into the public grid, the Renewable Energy Sources Act (EEG) has offered significant tax advantages since 2023. The supply, purchase, and installation of smaller solar systems up to a certain output are now exempt from VAT. This eliminates complex tax issues for many homeowners' associations.
Tax exemption of income throughPhotovoltaic systems
In addition, income from operating a photovoltaic system has been completely tax-free since 2023. Previously, the regulations were more complicated, with various exceptions and conditions. The new regulations make operating a solar system significantly more attractive for homeowners' associations.
Conclusion: tax regulations for the WEG photovoltaic system
The new tax regulations under the Renewable Energy Sources Act (EEG) have made the decision to install a photovoltaic system significantly easier. Both self-consumption and supply to tenants or feed-in to the grid are now tax-advantageous. This allows homeowners' associations to reap the benefits of solar energy without having to deal with complex tax issues.
