Green Energy (Real Estate)

Green electricity in the real estate context refers to electricity generated from renewable energy sources (sun, wind, water, biomass) that is used to power a property-either through on-site generation (a rooftop solar array) or by purchasing a certified green electricity plan from a utility provider. In combination with heat pumps, electric mobility, and energy storage systems, green electricity is becoming a central element of the energy transition in the building sector. Proof of green electricity supply influences a property’s energy performance certificate and carbon footprint.

Photovoltaics as a Green Electricity Source for Properties

A private photovoltaic system (PV system) is the most direct form of green electricity supply for property owners. Bavaria enjoys above-average sunshine hours-in Nuremberg, they average approximately 1,650 hours per year, making PV systems economically attractive. The electricity generated and used on-site saves on electricity purchase costs; surplus electricity is fed into the grid and compensated (feed-in tariff under the EEG). Battery storage increases the share of self-consumption to up to 80%.

Technical Specifications

A typical system for a single-family home:

• 5-10 kWp installed capacity
• 4,500-9,000 kWh annual yield in the Nuremberg region
• Self-consumption without storage: approx. 25-35%
• Self-consumption with storage (5-10 kWh): approx. 60-80%
• EEG feed-in tariff 2023: approx. 8.1-8.2 cents/kWh (systems up to 10 kWp)

Profitability Calculation (Example)

8 kWp system, annual yield 8,500 kWh, local electricity purchase price 32 cents/kWh (Nuremberg 2024):

• 60% self-consumption: 5,100 kWh × 0.32 €/kWh = 1,632 € savings
• 40% feed-in: 3,400 kWh × €0.082/kWh = €279 in revenue
• Total annual benefit: approx. €1,900
• Investment: approx. €13,000 (without storage) → Payback in approx. 7 years

Tax Treatment Since 2023

Since January 1, 2023, income from the operation of PV systems up to 30 kWp on residential buildings has been exempt from income tax-a significant simplification compared to the previous regulation, under which one had to choose between the small business scheme or standard taxation. Sales tax is also waived for the purchase and installation of PV systems on residential buildings (zero tax rate). Registration with the Federal Network Agency’s Market Master Data Register remains mandatory.

Green Electricity and Energy Performance Certificate

Proof of renewable energy use-whether through one’s own PV system, a heat pump with a green electricity contract, or district heating from renewable sources-improves the rating on the energy performance certificate. The primary energy factor for green electricity is 0 (fully renewable) compared to 1.8 for natural gas. This can improve the energy efficiency class by one to two levels.

For buyers, a good energy performance certificate is becoming increasingly important: Starting in 2025, buildings with poor energy efficiency (classes E-H) will face regulatory pressure. An existing PV system and a heat pump sustainably increase value and rentability-and can be specifically used as a selling point during a sale.

Tenant Electricity and Green Power Supply for Multi-Family Homes

The tenant electricity model enables landlords to supply self-generated green power directly to tenants in the same building-without going through the public grid. Tenant electricity is offered at a lower rate than regular household electricity and remains more profitable for the landlord than the feed-in tariff alone.

Requirements for the tenant electricity model:

• PV system on or attached to the building
• Direct line connection to the tenants’ meter points
• Separate tenant electricity contract with each tenant
• Registration with the grid operator (N-ERGIE in Nuremberg)
• Upper limit: The tenant electricity price may not exceed 90% of the basic supply price

The tenant electricity surcharge under the EEG amounts to approximately 1.5-2.5 cents/kWh in addition to the standard feed-in tariff, depending on the system size. Since the 2023 EEG amendment, the conditions for community building supply and tenant electricity models have been further simplified. In Nuremberg, N-ERGIE offers support in implementing such models.

Legal Aspects Under the WEG: PV System in the Community

Since the 2020 WEG Reform, homeowners’ associations can decide by a simple majority to install a PV system on the community roof. A single owner can no longer block the measure alone-this was possible before the reform and prevented many worthwhile projects.

Financing can be provided through the maintenance reserve fund, a special assessment, or by a single owner at their own expense, who then also receives the proceeds. The legal framework (usage agreement, billing method) should be regulated in the community bylaws or by resolution.

Green Electricity from the Utility: Quality Criteria

Those who do not have their own PV system can purchase green electricity from the utility. The term “green electricity” is not uniformly protected-a low-cost rate may be based on cheaply purchased guarantees of origin from Scandinavian hydropower without financing new renewable capacity.

Quality certificates to look for:

• ok-power label: Requires investments in new renewable energy plants
• Grüner Strom Label (GSL): Supports new renewable energy plants and regional projects
• Naturstrom / Polarstern: Has its own criteria for additionality and regional supply

In Nuremberg, N-ERGIE offers various green electricity plans; for green electricity with verified sustainability certification, we recommend looking for the labels mentioned above.

Practical Tip for Homeowners in Nuremberg and Franconia

Anyone who owns a single-family home or apartment building in Nuremberg or the metropolitan region should have the potential for a PV system assessed-especially if roof renovation is planned. The City of Nuremberg Solar Cadastre (solar.nuernberg.de) shows the solar potential for every roof free of charge online. Combined with a heat pump, this creates a fully renewable energy system that reduces operating costs, improves the energy performance certificate, and secures the property’s value in the long term.

We recommend integrating PV planning directly into upcoming roof renovations: If you’re having the roof re-shingled anyway, you won’t incur additional costs for scaffolding and roofers for the PV substructure. This reduces the total investment and significantly improves the payback period.

Frequently Asked Questions

Do I have to pay taxes on a PV system?

Since January 1, 2023, income from the operation of PV systems up to 30 kWp on residential buildings has been exempt from income tax. Sales tax is also waived for the purchase and installation (zero tax rate). Registration in the Federal Network Agency’s market master data register within one month of commissioning, as well as registration with the grid operator N-ERGIE, remains mandatory.

Does green electricity from the utility count the same as self-generated electricity?

For the energy performance certificate, the primary energy factor of the purchased electricity is used. Certified green electricity with a RECS certificate has a lower primary energy factor than the standard electricity mix. Self-generated PV electricity is rated even higher, depending on the accounting method. For a heat pump with a green electricity contract, the energy performance certificate score improves significantly-the primary energy factor for green electricity is 0, compared to 1.8 for natural gas.

Is a PV system possible in a homeowners’ association?

Yes. Since the 2020 WEG reform, homeowners’ associations can decide by a simple majority to install a PV system on the common roof. Financing can be arranged through the maintenance reserve fund or via a special assessment. Alternatively, an individual owner can install the system at their own expense and keep the proceeds alone-but approval by the association is still required. We recommend putting the topic on the agenda for the next owners’ meeting.

How long does a PV system last, and what warranties are available?

High-quality PV modules have a life expectancy of 25-30 years. Manufacturers typically offer a 25-year performance warranty (at least 80% of the rated output) and a 10-15-year product warranty. The inverter (lifespan approx. 10-15 years) must be replaced once-cost approx. 1,000-2,000 euros. Battery storage systems last 10-15 years. The entire system is therefore a long-term investment that significantly exceeds the building’s useful life.

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