Solar installations and laws: What you need to know
In our article today, we will cover the most important legal foundations regarding solar installations and regulations. After a brief introduction to the legal framework, we will delve deeper into the topic, first discussing which solar installations require building permits and what to consider before moving on to the tax incentives and subsidies for solar installations that make operating a solar system even more attractive. We will then take a closer look at net metering and feed-in tariffs for solar energy, and finally, we will examine the rights and obligations of solar system operators.
Introduction to the Legal Framework
There are numerous legal regulations that have a direct or indirect impact on the generation of electricity from solar energy. Energy legislation encompasses the most important national and European regulations. The most important law in Germany on this topic is the Renewable Energy Sources Act (EEG). The rules for the construction of solar installations, however, are found in the Building Code (BauGB). Additionally, there are several other considerations, such as environmental impact assessments, Technical Connection Conditions (TAB), tolerance obligations, and monument protection.
Building Permits for Solar Installations
Depending on the size of the solar installation, different legal requirements apply. We have summarized the most important ones in the table below:
| Installation Size | Permit Requirements | Legal Basis |
|---|---|---|
| Small installations (<10 kWp) | Usually permit-free, building notice required | State Building Regulations, BauGB |
| Medium installations (10 - 30 kWp) | Permit required for certain roof types | State Building Regulations, Monument Protection |
| Large installations (>30 kWp) | Environmental impact assessment, distance regulations | BauGB, Environmental Law, Zoning Plans |
| Ground-mounted solar installations | Environmental impact assessment, land use plan | Federal Nature Conservation Act, Zoning Plans |
Tax Incentives and Subsidies
There are numerous support options at both the federal and state levels, as well as from private sources. We have selected the five most important ones:
- EEG Tariff
Compensation for electricity fed into the grid - KfW Loans
Low-interest loans for solar installations from the Kreditanstalt für Wiederaufbau - Tax Exemption for Small PV Systems
Income from small installations is often tax-free - VAT Reduction
Reduced VAT rate on purchase costs - State Support Programs
Grants and loans from state governments
Net Metering and Feed-In Tariffs
Net metering is a billing system for solar installations that uses a smart meter to measure how much electricity is drawn from the public grid and how much electricity from the solar installation, which is not used on-site, is fed back into the grid. This balancing allows for significant reductions in personal electricity costs. Currently, the feed-in tariff is around 8 ct/kWh.
Rights and Obligations of Solar System Operators
The area of rights and obligations is very extensive, so we have selected five of the most relevant points. Further and more comprehensive advice can be obtained from appropriate advisory bodies.
Obligations
Operators must…
- … ensure compliance with technical connection conditions
- … feed excess electricity into the grid
- … operate and maintain the installation according to regulations
- … decommission the installation at the end of its useful life
- … obtain liability insurance for their solar installation
Rights
Operators have the right to…
- … connect their solar installation to the public grid
- … receive a legally established tariff for electricity fed into the grid
- … use the electricity they generate themselves
- … apply for government support and tax incentives for the construction and operation of their installation
- … receive comprehensive advice from the grid operator and authorities regarding their installation
Case Studies and Court Rulings
There are some landmark court rulings on the topic of solar installations. In one case, the question was whether the EEG tariff also applies to tenant electricity models, i.e., whether the direct supply of tenants qualifies for EEG support. The court affirmed this.
In another case, the court had to decide whether monument protection takes precedence over solar installations. In this case, the court prohibited the installation of a solar system on a protected building due to the overriding interest in preserving cultural heritage. However, this does not mean that monument protection generally excludes the installation of a solar system—each case requires individual assessment.
Future Outlook and Possible Legal Changes
To achieve climate goals and the targets set for the energy transition, it is expected that support opportunities will be expanded in the future. The tightening of climate protection laws could further strengthen this trend. Additionally, grid expansion will continue, and technological developments are likely to influence the corresponding legislation. This may also involve digital solutions aimed at making future energy management more efficient, possibly in conjunction with energy storage technologies.
Summary
Overall, the legal regulations for operating solar installations are quite extensive. However, recent legal adjustments have shown that simplifications in favor of system operators are not only being considered but have often already been implemented. A good example of this is the regulations for operating a small installation or a balcony power plant. Nowadays, almost anyone can install such a system at home without needing to apply for a building permit or hire an installation company. The barriers have been significantly lowered.