The German Bundestag today adopted the Act on the Promotion of Landlord-to-Tenant Electricity in the second and third readings.
said: "Promoting landlord-to-tenant electricity makes tenants part of the . Landlords who have photovoltaic installations on the roofs of their buildings can sell the electricity generated by these installations to their tenants. This is already possible today, but usually not profitable. Electricity that is not used by landlords themselves is fed into the grid. Landlords receive remuneration for this electricity pursuant to the Renewable Energy Sources Act (EEG). In future, landlords will also receive remuneration when they sell the electricity thus generated to their tenants. However, as no grid fees need to be paid for this electricity, the remuneration is much lower than when the electricity is fed into the grid. This new rule will increase the supply of landlord-to-tenant electricity and bring the energy transition into the cities."
Landlord-to-tenant electricity is power generated in a PV system installed on the rooftop of a residential building and supplied to final consumers (particularly tenants) in the immediate vicinity of that building. The remuneration depends on the size of the solar installation and the overall new photovoltaic capacity, it will range between 2.2 cents/kWh and 3.8 cents/kWh. A study conducted on behalf of the Federal Ministry for Economic Affairs and Energy has found that up to 3.8 million households could benefit from landlord-to-tenant electricity supply.
At the same time, the Act makes sure that tenants will still be able to freely choose their electricity suppliers and actually benefit from the landlord-to-tenant electricity model. For this purpose, the Act contains requirements regarding contract terms, the ban on a link with rental contracts and a price cap for landlord-to-tenant electricity.
Now the Bundesrat is to decide on the Act (with the approval by the Bundesrat not being necessary). The Act is to enter into force in autumn.
The Landlord-to-Tenant Electricity Act includes an Article on a different issue, providing for temporary amendments regarding auctions for wind energy installations. The "citizens' energy companies" as defined in the Act do not need to submit an authorisation for their planned wind energy installation when they participate in auctions. As a result of this rule, which aims to maintain a large diversity of providers, together with additional preferential treatment provisions, almost all the funding went to citizens' energy companies in the first auction. The Bundestag has now decided to suspend this rule for the first two auction rounds in 2018 to test the impact. These modifications take account of proposals by the wind power industry and the Bundesrat.