Contact Ralph
Why a PV system is worthwhile for the community of owners
The increasing popularity of PV systems is no coincidence: they offer numerous advantages for homeowners' associations.
- Fast amortization: The investment in a solar system usually pays for itself within 10-12 years. After that, you will save money for many years to come.
- If a supply model is chosen in which the solar power generated is at least partially used by the residents, this leads to long-term financial relief. Reducing the amount of electricity drawn from the public grid saves costs.
- WEG makes an important contribution to climate protection. PV systems are characterized by low CO2 emissions and are therefore 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 load on the grids.
- Independence from rising electricity prices is another advantage. The more electricity you generate yourself, the less dependent you are on the public grid.
- In combination with modern heating systems, solar power can also be used to generate heat. This offers a cost-effective supplement to conventional heating systems, especially in times of rising energy prices.
- Roof direction flexibility: South-facing roofs are not the only ones suitable for solar installations. East-west orientations are also well suited, as the sun shines on the modules over a longer period of time.
- Modern technology: Thanks to technical advances, solar systems can generate electricity even in bad weather.
- Sustainability: Solar power is low-emission and contributes to climate protection.
- Value retention: A PV system can increase the value of a property.
- Last but not least, photovoltaic systems are extremely durable. With good quality, only low maintenance costs are to be expected.
PV system summary: community of owners benefits
A PV system is more profitable than ever before. The reason for this is the falling cost of solar modules and rising electricity prices. With photovoltaics on the roof, the condominium becomes (at least partially) an electricity supplier itself, which means that less or no electricity has to be purchased from the public grid. The more in-house electricity is produced, the more independent the COA becomes from the public grid. Any price increases will then no longer affect the owners. In addition to the opportunity to save money, solar energy also contributes to environmental protection, as PV systems do not release any climate-damaging CO2 when producing their own solar power.
How do you find a consensus in the WEG?
A lack of consensus within owners' associations is one of the main reasons why many apartment buildings do not have a solar energy system. High investment costs and the associated financial outlay deter many landlords from installing a solar system.
The decision to install a shared PV system should always be carefully weighed up in your community of owners. It is important to discuss the advantages and possible challenges openly. The following aspects can help you with this:
- Cost breakdown: A transparent presentation of the costs and potential savings can help to dispel the concerns of individual homeowners.
- Life cycle: The long-term benefits of the investment should be emphasized.
- Sustainability: The contribution to climate protection can serve as a common goal.
- Funding opportunities: Even though state subsidies have decreased, there may be municipal or regional funding programs.
- Professional advice: An independent energy consultant can support you in your decision-making process.
Want more tips and advice like this from your property management company? Simply switch to Ralph now and contact us for a free quote
Legal situation regarding PV systems: owners must agree - but not all of them
Before the WEG reform, the decision to install a photovoltaic system in a WEG was associated with a number of hurdles. As the installation of such a system is regarded as a structural change to the common property that significantly alters the appearance of the building, the consent of all condominium owners was usually required.
However, the 2020 WEG reform has fundamentally changed this. In order to drive forward the energy transition and promote sustainable measures, the decision-making process for structural changes that have a sustainability aspect - such as the installation of a photovoltaic system - has been significantly simplified.
Nowadays, a simple majority of the owners present is sufficient for the installation of a solar system. This only means that there must be more yes votes than no votes. It is no longer necessary for all owners to agree. This new regulation makes it much easier for condominium owners' associations to switch to renewable energies together and benefit from the advantages of their own solar system. With regard to the costs arising from the installation, the Condominium Act stipulates that these will only be borne by those owners who vote in favor of the PV system.
Important: Both the declaration of division and the community rules contain regulations for the use of the common property and may contain specific requirements for structural changes. In order to install a photovoltaic system, these documents may need to be amended.
Step by step to your own solar system - a guide for homeowners' associations
Installing a photovoltaic system is a multi-stage process that requires thorough preparation. The basic steps are presented below.
Step 1: Gathering information and planning the PV system
The installation of a photovoltaic system is a complex project that requires comprehensive preparation by homeowners' associations. In particular, the choice of a suitable supply model must be made at an early stage.
In order to create broad agreement within the community of owners and a good basis for cooperation, you should involve all owners in the planning process at an early stage. Open communication and answering any questions that may arise are key to involving everyone involved and ensuring a smooth process.
You should clarify the following aspects in advance:
- Who among the owners will take on the project management?
- How is project management remunerated?
- How is the billing of electricity costs organized?
- What tasks does the property management company take on?
Another important point is the financing of the investment. Various financing models can be used here, such as using 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 project. The construction of the photovoltaic system, the operating conditions and the type of energy supply are voted on at an owners' meeting.
The required majority depends on the planned financing. In the case of voluntary participation, a simple majority of 51% of those present and entitled to vote is sufficient. If you want to pass on the financing to all condominium owners, a higher majority of three quarters of all owners with voting rights is required.
Step 3: Implementing the project and installing the solar system
Now it's time for the practical implementation: the PV system, which has been carefully planned and approved by the community of owners, is installed. As soon as the system is mounted on the roof and connected to the power grid, you can generate your own electricity as a community.
Financing the PV system for the community of owners: Individual applications to the bank
As a rule, a loan is required to finance a PV system. Here, the owners may face a challenge, because banks are all too reluctant to grant loans to WEGs. The hurdle is overcome by each owner submitting his or her own individual application to the bank and paying for his or her loan individually. On the basis of the individual applications, the bank then checks whether the COA as a whole is solvent and grants the subsequent loans at the same time.
Who bears the costs for a photovoltaic system on the condominium's roof?
In apartment buildings, the installation of a photovoltaic system requires a resolution of the community of owners in accordance with Section 20 (1) WEG. This applies regardless of whether individual owners are disadvantaged by the change or not. A simple majority in accordance with Section 25 (1) WEG is sufficient for this resolution.
The costs for structural alterations are generally borne by those owners who have agreed to the measure (Section 21 (3) WEG). Exceptions apply to changes that have been approved by a two-thirds majority or are classified by law as particularly advantageous. In these cases, owners who are not willing to give their consent can also share in the costs. This principle serves to ensure that the interests of all owners are adequately taken into account.
A different regulation applies to solar installations on open spaces. From a certain size, usually from a height of 3 meters and a length of 9 meters, a building permit is required. The exact regulations for this are set out in the respective state building regulations.
The best way to operate and use the solar system as a WEG
As soon as your condominium has passed a resolution to install a photovoltaic system, the question arises as to how this system should be operated and used in the most sensible way. There are various options, each of which has advantages and disadvantages.
- Leasing the roof area: A simple solution is to lease the roof area to a provider. This provider takes over the planning, installation, operation and billing of the electricity. Your WEG receives a fixed lease payment.
- Partial outsourcing: Your COA can also outsource individual tasks such as electricity supply and billing to a service provider.
- Do it all yourself: The most sophisticated option is to do it all yourself. Your COA takes on 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 optimum operating form depends on various factors:
- Effort: How much effort does your WEG want to take on itself?
- Cost-effectiveness: 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 WEG?
It is advisable to weigh up the various options carefully and, if necessary, consult an energy expert. This expert can support you as a homeowner in choosing the best solution. Ultimately, the right solution always depends on the individual needs and objectives of your condominium.
The change to Ralph is uncomplicated.
Do tenants even have to buy the electricity generated?
The question of whether tenants have to purchase the electricity generated by a communal photovoltaic system can be answered briefly: No, they do not have to. In principle, every tenant has the freedom 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. As a landlord, you therefore have the option of offering so-called tenant electricity models and selling the solar power to your tenants. This can be advantageous for both sides: The tenants benefit from cheaper electricity and the landlords can amortize their investment in the solar system more quickly.
In order to create clarity and avoid possible misunderstandings, it is advisable to talk to your tenants about the possibilities and conditions of the power supply before installing the solar system. As a rule, tenants are very willing to purchase solar power due to the financial benefits.
Solar system and taxes: What you need to consider as a homeowner
The decision to install a photovoltaic system in the community of owners is often influenced by tax aspects. The regulations used to be complex and bureaucratic. However, thanks to the new regulations in the Renewable Energy Sources Act (EEG), this has become much simpler.
Self-consumption in the Community
The simplest solution is to use the electricity generated exclusively for joint consumption in the community of owners, for example for elevators, stairwells or common rooms. In this case, no electricity is sold and the landlord or community is not considered a business. This eliminates the need for sales and income tax, which makes administration considerably easier.
Supply electricity to residents or feed it into the public grid
Even if the community supplies the electricity to the individual apartments or feeds it into the public grid, the EEG has offered considerable tax advantages since 2023. The supply, purchase and installation of smaller solar systems up to a certain output are now VAT-free. This eliminates complex tax issues for many homeowners' associations.
Tax exemption of income from photovoltaic systems
In addition, income from the operation of a photovoltaic system has been completely tax-free since 2023. The regulations used to be more complicated and there were various exceptions and conditions. The new regulations make the operation of a solar system much more attractive for communities of owners.
Conclusion: tax regulations for the WEG photovoltaic system
The new tax regulations in the EEG have significantly simplified the decision to install a photovoltaic system in a photovoltaic system. Both self-consumption and supply to tenants or feeding into the grid are now attractive from a tax perspective. This means that communities of owners can benefit from the advantages of solar energy without having to deal with complex tax issues.
