Tenant Electricity
Solar electricity generated on a multi-family building's roof and sold directly to the tenants in the building.
Also known as: Tenant Electricity Model, Mieterstrom
What Is Tenant Electricity?
Tenant electricity is electricity from a photovoltaic system on the roof of a residential building that is delivered directly to tenants in the building without passing through the public grid. The landlord or a service provider operates the system and sells the electricity at a price that must be below the local standard supply tariff.
Legal Framework
The tenant electricity law (since 2017, amended in the EEG 2023) provides:
| Regulation | Details |
|---|---|
| Tenant electricity supplement | 2.6—3.1 ct/kWh (depending on system size) |
| Price cap | Max. 90% of the standard supply tariff |
| Residual supply | Full supply guaranteed by provider |
| Eligible systems | On/at residential buildings, up to 100 kWp |
Advantages
- Tenants: Cheaper electricity without own investment
- Landlords: Additional income, property value enhancement
- Environment: Local electricity generation without grid burden
Challenges
- Administrative overhead: Electricity supply contract, billing, reporting obligations
- VAT liability: Landlord becomes an energy supplier
- Service provider needed: Usually handled by tenant electricity providers
Practical Tip
Tenant electricity is particularly worthwhile in larger multi-family buildings with many tenant units and high daytime consumption. Specialised tenant electricity service providers handle the administrative overhead.
Related Terms
EEG (Renewable Energy Sources Act)
German law promoting renewable energies -- governs the feed-in tariff for solar electricity, among other things.
Self-Consumption
Share of self-generated solar electricity consumed directly in the household rather than fed into the grid.
Feed-in Tariff
Legally guaranteed remuneration for solar electricity fed into the public grid, governed by the EEG.
Photovoltaics
Technology for the direct conversion of sunlight into electrical power using solar cells made from semiconductor material.