Blog: House Orange
Eco-friendly apartment building with solar panels on its roof. Generative AI

Tenant electricity transforms the solar obligation into an economic opportunity: building owners become electricity suppliers and open up a new source of income. The complete B.One Tenant Electricity solution offers everything they need.

Tenant electricity brings the principle of self-sufficiency to apartment buildings. Electricity from the photovoltaic system is consumed directly on-site by the residents, bypassing the public grid. The potential is enormous: According to a study by the German Economic Institute (IW), up to 20,4 million apartments in approximately three million apartment buildings in Germany could be supplied with tenant electricity. This represents a largely untapped potential for the energy transition, particularly in urban areas. This creates a new business opportunity for the housing industry. Owners become electricity suppliers. Roof space becomes an active source of revenue, potentially generating returns of up to 17 percent.

This is how tenant electricity works

In the classic tenant electricity model, the building owner operates the photovoltaic system and sells the electricity directly to the tenants. In addition to the sales revenue, they receive the government tenant electricity surcharge according to the Renewable Energy Sources Act (EEG). If the self-generated electricity is not fully utilized, the surplus flows into the grid, for which the EEG feed-in tariff is paid. If the building's own solar system does not produce enough electricity, the owner purchases the additional electricity required from the public grid and sells it to the tenants.

Numbers that convince

Whether tenant electricity is profitable depends largely on roof size, consumption patterns, and the participation rate of residents. Economical operation is possible with as few as three residential units.

An example from the Stuttgart area illustrates the scale: In a ten-unit apartment building with a 30-kilowatt peak output solar array, approximately 27.000 kilowatt-hours of solar power are generated annually. With a self-consumption rate of 60 percent, about 16.200 kilowatt-hours flow directly to the residents. Under conservative assumptions, this results in an annual net revenue of around €5.200 . With investment costs of approximately €42.000, the amortization period is roughly eight years. The annual return on investment is 12,4 percent.

For comparison: With full feed-in, the annual revenue is just under 3.000 euros. The amortization period is around 14 years, and the annual return is 7,1 percent.

Tenants also benefit financially: The tenant electricity tariff is typically around ten percent lower than conventional electricity tariffs because network charges and levies are eliminated. At the same time, they benefit from greater price stability and a sustainable, local supply.

Categories
Position
Amount (€/year)
Derivation
revenues
Tenant electricity revenue
+ 7.500
25.000 kWh × 30 ct/kWh
Basic fees
+ 1.282,80
10 x €128,28
Tenant electricity surcharge
+ 392,04
16.200 kWh × 2,42 ct/kWh
EEG feed-in tariff
+ 764,64
10.800 kWh × 7,08 ct/kWh
Total revenue
+ 9.939,48
Costs
Purchase of residual electricity
- 2.993,76
8.800 kWh × 34,02 ct/kWh
Basic fees
- 128,28
Electricity tax residual electricity
- 180,40
8.800 kWh × 2,05 ct/kWh
Operations & Accounting
- 1.400
Annual operating costs: €800 and billing: €600
Total costs
- 4.702,44
Net revenue per year
+ 5.237,04
Revenue from tenant electricity by residential unit

Renovation as an opportunity

Many German states now mandate solar panels for new buildings or extensive roof renovations. Funding instruments such as the KfW Loan 270 support the financing. Instead of using the system solely for feeding electricity into the grid, selling the generated electricity on-site can significantly improve profitability.

Tenant electricity combines additional revenue with climate protection and long-term tenant retention: The energy balance and the market value of the property increase. The building owner positions themselves in the competition for sustainable housing options.

A building block for the house of the future

The house of the future isn't created through a single measure. Owners face the challenge of using investments economically, meeting increasing legal requirements, and considering tenants' expectations. Measures to improve the building envelope, for efficient heat generation, or electricity production are individual components that should be coordinated within a holistic renovation concept. Ultimately, the individual measures must mesh together like gears in a machine.

B.One tenant electricity

With B.One Tenant Electricity, property owners have access to a complete solution that significantly reduces administrative and regulatory effort. The range of services extends from roof area analysis and profitability forecasts to technology selection and the provision of legally compliant contract documents.

After commissioning, billing, monitoring and reporting will be managed via a digital platform.

Furthermore, B.One Mieterstrom ensures that all legal requirements under the Renewable Energy Sources Act and Section 42a of the Energy Industry Act – from metering concepts and reporting obligations to electricity labeling and billing – are correctly implemented. Owners receive maximum security with minimal effort. This transforms tenant electricity from a theoretical option into a practically implementable modernization measure.

Author

Minol Favicon

Dr. Simon Dierig | Technischer Projektmanager Minol Messtechnik W. Lehmann GmbH & Co. KG

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