The key points at a glance
- Mieterstrom means solar power from the building's roof is supplied directly to the residents, without passing through the public grid.
- Under classic Mieterstrom, the operator becomes an electricity supplier with all the associated obligations and in return receives the Mieterstrom premium under Germany's Renewable Energy Sources Act (EEG).
- Shared building supply (Section 42b of the German Energy Industry Act, EnWG) has been the much simpler route since May 2024: no supplier obligations, and every household keeps its own electricity contract.
- In the WEG, a simple majority is enough for a system on the shared roof (Section 20 WEG, structural alteration).
- Much is settled on the tax side: for apartment buildings, income is exempt from income tax for systems up to 15 kilowatt peak per residential unit, and 0 percent VAT applies to the supply and installation of systems up to 30 kilowatt peak.
On this page
What is Mieterstrom? The basic idea
The idea is quickly explained: a photovoltaic system on the roof of the residential building generates electricity, and this electricity is supplied directly to the residents without passing through the public grid. The people in the building consume solar power generated just a few metres above their heads.
Behind the catchy term Mieterstrom, however, lie several different legal models, and the choice of model determines which obligations the operator takes on and which subsidies are available. Three routes are on offer: classic, EEG-subsidised Mieterstrom, shared building supply under Section 42b of the German Energy Industry Act (EnWG), and simple feed-in to the grid without directly supplying the residents. We will now look at all three in detail.
By the way
Balcony solar units are the small, individual alternative for single apartments. They are a topic of their own and are deliberately not covered in depth in this guide.
The three models in brief
Before the big comparison table lays out the details side by side, here are short profiles of the three models.
Classic Mieterstrom: the subsidised full-service model
Under the classic Mieterstrom model, the operator of the system becomes the electricity supplier of the participating households. The operator can be the owner, the WEG or a contracted service provider. Being an electricity supplier is meant literally here: the operator takes on all supplier obligations, from billing and procuring the residual electricity to the entire contract administration. In return, there is the Mieterstrom premium under the EEG, a subsidy for systems up to 100 kilowatts.
Two rules protect the residents: the Mieterstrom price may not exceed 90 percent of the local basic supply tariff, and participation is voluntary. Nobody may be forced to purchase the tenant electricity. Because of the extensive obligations, specialised service providers often take over operations in practice, known as contracting: the building provides the roof space, and the service provider handles supply, billing and contracts.
Shared building supply: the simple new route
Shared building supply under Section 42b EnWG was introduced with the Solarpaket I legislation and has been possible since May 2024. The principle: the solar power is not supplied in the classic sense but allocated virtually to the participating households according to a fixed allocation key. Every household keeps its own electricity supply contract and uses it to cover the residual electricity, meaning the power the system is not delivering at any given moment, at night for example.
The decisive advantage: the operator has no supplier obligations. It neither has to procure residual electricity nor manage electricity supply contracts. In return, however, it also receives no Mieterstrom premium. The technical requirement is smart metering systems (smart meters) in the building. On balance, this model is much easier to implement and particularly attractive for WEGs.
Feed-in without direct supply: the minimal solution
The third option does without supplying the residents altogether. The solar power is fed into the public grid, in full or as surplus, and the EEG feed-in tariff is paid in return. The residents buy their electricity from their provider as usual, and the income from the feed-in goes to the operator, for example the association. If you want to use the roof while keeping the effort as small as possible, this is the most straightforward way in.
The three models compared
The following table sets the three routes side by side using the most important criteria. It also works well as a basis for discussion at the next owners' meeting or in a conversation with your property manager.
| Criterion | Classic Mieterstrom | Shared building supply | Feed-in without direct supply |
|---|---|---|---|
| Who supplies the electricity to the residents? | The operator becomes the electricity supplier of the participating households (owner, WEG or service provider) | No supplier in the classic sense: the solar power is allocated virtually according to a fixed allocation key | Nobody, the residents buy their electricity from their provider as usual |
| Operator's obligations | Full supplier obligations: billing, procuring the residual electricity, contract administration | No supplier obligations | Only operating the system and feeding in |
| Subsidies and remuneration | Mieterstrom premium under the EEG (for systems up to 100 kilowatts) | No Mieterstrom premium | EEG feed-in tariff for the electricity fed in |
| Residual electricity | Procured and supplied by the operator | Every household keeps its own electricity supply contract | Not applicable, the residents keep their normal electricity supply |
| Special requirements | Price cap: no more than 90 percent of the local basic supply tariff | Smart metering systems (smart meters) | No special requirements |
| Effort | High, in practice often handed over to specialised service providers (contracting) | Manageable, much easier to implement | Low |
| Best suited for | Properties where a service provider or professional operator takes on the obligations | WEGs and landlords who want to supply residents directly without becoming an electricity supplier | Anyone who wants to keep things as simple as possible; the income goes to the operator, for example the association |
In short: for many associations, the decision comes down to shared building supply, because it allows residents to be supplied directly without anyone having to become an electricity supplier. Classic Mieterstrom remains interesting if the premium is to be used and a service provider takes on the obligations. Pure feed-in is the right choice if the project is to stay as lean as possible.
How the project gets through the WEG
In an apartment building with a condominium owners' association, the roof is part of the common property, so the owners' meeting decides on a photovoltaic system. The hurdles are lower than many expect.
The resolution: a simple majority is enough
Legally, a photovoltaic system on the shared roof is a structural alteration and is approved with a simple majority (Section 20 of the German Condominium Act, WEG). Unanimity is not required: a well-prepared meeting can get the project under way with an ordinary majority. How resolutions and majorities work in the WEG in general is explained in our guide WEG and the law.
Who operates the system?
The second core question is the operator role, because it determines who takes care of things later and who is entitled to the proceeds. Three roles are possible: the association operates the system itself, individual owners take it on, or an external service provider is brought in, for example via a roof lease. If the association operates it itself, income and decisions stay in the building, but it also carries the responsibility. With a service provider, it hands over effort and obligations.
What the resolution should cover
Besides the operator question, the ground rules belong in the resolution: who bears which costs, who receives the income, and who is responsible for what? The more clearly these points are spelled out from the start, the more smoothly the project runs over the years. An experienced property management company prepares exactly this draft resolution and makes sure the meeting votes on a well-rounded concept.
Taxes: the key rules
The tax treatment of photovoltaics on residential buildings is settled these days and very accommodating on two points:
- Income tax: income from photovoltaic systems is tax-exempt, for single-family homes for systems up to 30 kilowatt peak, for apartment buildings up to 15 kilowatt peak per residential unit and no more than 100 kilowatt peak in total per taxpayer (Section 3 No. 72 of the German Income Tax Act, EStG).
- VAT: 0 percent VAT applies to the supply and installation of photovoltaic systems up to 30 kilowatt peak (Section 12 (3) of the German VAT Act, UStG).
Whether your specific project falls entirely within these limits depends on the system size and the number of residential units. For the finer points, for example with very large systems or unusual ownership structures, a visit to a tax advisor is worthwhile.
When does a system pay off? An honest assessment
Blanket promises of returns would be dishonest here, because every building is different. Three principles apply everywhere, though:
- The benefit grows with the self-consumption rate. The more solar power is consumed directly in the building, the better the system pays its way.
- A heat pump and electric mobility increase self-consumption. If you are thinking about the heating system anyway, it is best to plan both together; our guide to Germany's heating law (GEG) provides the overview.
- The roof first, then the system. Check the condition of the roof before installation. A roof in need of repair is renovated first, and the photovoltaics come afterwards. Our guide to energy-efficiency renovation shows how to sequence measures sensibly.
In short: a system is most likely to pay off where as much electricity as possible stays in the building and the roof is in good condition.
The role of the property manager: get the right one on board early
A Mieterstrom or photovoltaic project is not a single agenda item but an undertaking spanning years: obtaining quotes, preparing the resolution, coordinating service providers, keeping track of responsibilities and billing. Whether it runs smoothly depends to a large extent on whether the property management company actively supports such projects.
Honestly, that is not yet the norm. Mieterstrom is still the exception among property managers: only 12 of the 2,176 property management companies in our directory list Mieterstrom experience, 32 photovoltaics and 56 electric mobility (as of July 2026, our own analysis of our directory). All the more valuable, then, to find an experienced property manager early on.
A property manager who actively supports your energy project
If you are planning photovoltaics or Mieterstrom, you need a property management company that knows such projects and helps carry them. Describe your property in two minutes: we find modern property management companies from your region, and you receive no-obligation quotes. 100% free of charge for owners.
Frequently asked questions about Mieterstrom and photovoltaics
What is Mieterstrom?
Mieterstrom, or on-site tenant electricity, means power from a photovoltaic system on the roof of a residential building is supplied directly to the residents, without passing through the public grid. It is implemented either through the classic, EEG-subsidised Mieterstrom model or through shared building supply.
What is shared building supply?
Shared building supply under Section 42b of the German Energy Industry Act (EnWG) was introduced with the Solarpaket I legislation and has been possible since May 2024. The solar power is allocated virtually to the participating households according to a fixed allocation key, and every household keeps its own electricity contract for the residual electricity. The operator has no supplier obligations but also receives no Mieterstrom premium. Smart metering systems (smart meters) are required.
Which model suits our WEG?
Shared building supply is much easier to implement and therefore the most attractive solution for many WEGs. Classic Mieterstrom mainly comes into consideration if the Mieterstrom premium is to be used and a specialised service provider takes on the supplier obligations. If you want to keep things as simple as possible, you feed all the solar power into the grid and the association receives the EEG feed-in tariff.
Do all residents have to take part in Mieterstrom?
No. Participation is voluntary, and nobody may be forced to purchase the tenant electricity. Those who do not take part simply continue to buy their electricity from a provider of their choice.
How high may the Mieterstrom price be?
For classic, EEG-subsidised Mieterstrom, a price cap applies: the Mieterstrom price may not exceed 90 percent of the local basic supply tariff.
Which tax rules apply to PV on an apartment building?
Income from the photovoltaic system is exempt from income tax, for apartment buildings for systems up to 15 kilowatt peak per residential unit and no more than 100 kilowatt peak in total per taxpayer (Section 3 No. 72 of the German Income Tax Act, EStG). In addition, 0 percent VAT applies to the supply and installation of photovoltaic systems up to 30 kilowatt peak (Section 12 (3) of the German VAT Act, UStG).
Do we need a resolution for the PV system?
Yes. A photovoltaic system on the shared roof is a structural alteration and is approved with a simple majority (Section 20 of the German Condominium Act, WEG). The resolution should also set out who operates the system and how costs, income and responsibilities are allocated.
Related guides
This guide was prepared with great care (last updated: July 2026) but does not replace legal or tax advice for your individual case. For special situations, for instance when drafting contracts with a service provider or on detailed tax questions, a law firm specialising in energy law and a tax advisor can help.