Germany: Balcony PV Explodes As Law Amendment Passes

On 4th July 2024, the German Parliament passed a legal amendment to provide more facilities for installing balcony PV system installations, making it easier for flat owners and tenants to install PV systems on their balconies. The amendment bill needs to be considered by the Bundesrat before it can enter into force.

Balcony photovoltaic systems, known in Germany as ‘balkonkraftwerk’, are photovoltaic systems installed on balconies, also known as plug-in solar systems. The homeowner simply fixes the PV system to the balcony railing and plugs the system cable into a socket at home. A balcony PV system usually consists of 1-2 PV modules, and a Micro Inverter. The PV modules generate DC power, which is then converted to AC power by the inverter, which plugs the PV system into the socket and connects it to the home circuit. Alternatively a Micro Battery can be added between the PV and the micro inverter to store power, and the excess power stored during the day can be used at night.

Balcony PV systems sold in German supermarkets are not subject to VAT, cost around 600-700 euros per set and are subsidised for the most part by the local government in some cities. On sunny days, the system can meet most of the electricity needs of an average two-person household. Small, easy-to-install photovoltaic installations quickly pay for themselves during periods of significant energy price increases. Some organisations estimate the cost recovery cycle to be around 2-4 years. Whilst 800-1000W may not cover the entire daily energy consumption of a household, it provides an effective way to contribute to the environment whilst saving on electricity costs without a significant upfront investment.This is particularly attractive to those living in flats, where small-scale balcony solar systems have become one of the few options for participating in the Green Revolution.

In May 2024, the German Federal Ministry of Economic Affairs and Climate Operations officially approved the release of the ‘PV Package’, which brings great convenience to the development of balcony PV: simplified installation process, cancellation of the mandatory configuration of bidirectional meter requirements; elevated power limit, the inverter equipment power limit is raised to 800W, to enhance the PV power generation; convenient outlet power supply, only need to plug the AC cable into the home socket to achieve grid-connected power generation.