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Side close-up shot of a young modern family with a little son getting acquainted with solar panel on a sunny day, green alternative energy concept

How tenant electricity works in apartment buildings and how tenants and owners benefit from it

Solar power from one's own roof is already well-established for homeowners. In apartment buildings, however, this advantage has been largely unavailable to tenants. This is precisely where tenant electricity in apartment buildings comes in. Residents obtain electricity directly from a photovoltaic system on the building. This reduces costs, generates new revenue for owners, and supports the energy transition.

What is tenant electricity?

In this electricity marketing model, locally generated electricity, usually from rooftop photovoltaic systems, is supplied directly to the tenants of the same building. The difference to conventional electricity supply is that the electricity is generated and consumed within the building's own system and is not transported via the public grid.

Infographic: How tenant electricity works

How does tenant electricity work in apartment buildings?

In the simplest case, the building owner is also the operator of the solar power system. He sells the solar power to the residents and receives, in addition to the sales proceeds, the government tenant electricity surchargeIf the amount of electricity generated is insufficient, the owner purchases electricity from the public grid. Excess solar power is fed into the grid and compensated.

Other tenant electricity models

Besides the basic model, where the building owner operates the photovoltaic system themselves, there are other implementation options. Often, external service providers handle the planning, financing, operation, and billing of the system under a contracting model. Lease or cooperative models are also possible, where another organization is fully or partially responsible for the system, and the owner simply provides land or parts of the building. Depending on the model, the effort, risk, and financial investment for the owner vary considerably.

What are the advantages of tenant electricity?

Advantages for landlords

Landlords gain an additional source of income, which consists of three components: the state tenant electricity surchargeThe payment, which is made by the grid operator for 20 years, is supplemented by the revenue from electricity sales to tenants and the feed-in tariff for surplus electricity. Tenant electricity thus increases the return on investment and the value of the property, and improves the energy balance.

Advantages for tenants

Tenant electricity can be cheaper for tenants, as the price may not exceed 90 percent of the local basic supply tariff (§ 42a EnWG). Because the electricity is generated directly at the building and consumed on-site, cost components such as network charges, electricity tax, or concession fees can be waived for this share of the electricity.

Economic efficiency and influencing factors

Profitability depends heavily on specific framework conditions:

  • Size and orientation of the roof surface
  • ratio of electricity generation to consumption in the building
  • Number of participating households
  • Investment costs and funding amount
  • Complexity of the measurement and billing system

How does the implementation work?

Several components are required for operation:

  • Photovoltaic system including inverter
  • Metering concept with calibrated meters for generation, total consumption and individual residential units
  • Energy data management for recording and distributing electricity quantities
  • Billing system for the correct allocation of consumption

In addition, energy-related obligations arise:

  • Registration with the network operator
  • Electricity labeling
  • Balancing group management for residual electricity procurement

Role of external service providers

Specialized providers can take over the operational implementation upon request, for example:

  • Economic analysis and project planning
  • Installation and operation of the system
  • Metering point operation and data management
  • Electricity supply and billing to tenants

This significantly reduces the organizational effort for owners.

B.One tenant electricity: Woman looks at solar panels

B.One tenant electricity

With B.One tenant electricity, you become an energy producer, supply your tenants with affordable electricity and simultaneously increase the attractiveness and value of your property.

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