Solar system

A solar system uses solar energy to generate electricity (photovoltaics, or PV for short) or to produce heat (solar thermal energy). Solar modules or collectors are typically installed on roofs, facades, or open spaces and convert sunlight into usable energy. For property owners, solar systems are now one of the most economically attractive ways to reduce energy costs and increase property value.

Photovoltaics vs. Solar Thermal: Which System Is Right?

Photovoltaic systems generate electricity that can be consumed on-site, stored in a battery, or fed into the grid. The feed-in tariff under the Renewable Energy Sources Act (EEG) makes photovoltaics economically attractive, although self-consumption is generally more profitable than feeding electricity into the grid. Solar thermal systems generate heat for domestic hot water and supplemental heating. They are particularly suitable for buildings with high hot water demand (e.g., apartment buildings). It is often worthwhile to combine both systems or integrate them with a heat pump.

A third, increasingly common option is agri-PV on agricultural land-for property owners with larger plots or agricultural land in Franconia, this can represent an attractive source of income. However, planning requires a special building permit and coordination with the grid operator.

Cost-Effectiveness and Incentive Programs

The payback period for a photovoltaic system ranges from 8 to 14 years for modern systems, depending on size and self-consumption rate. Relevant subsidies: the KfW Loan 270 (Renewable Energies - Standard) offers low-interest loans, and Bavaria subsidizes energy storage through the BayernSolar Program. Since 2023, the installation of PV systems on residential buildings in Germany has been exempt from value-added tax (0% VAT), which significantly reduces the initial costs. We recommend obtaining several quotes before investing and having a return on investment calculation performed based on actual electricity consumption.

The current EEG feed-in tariff (2025) is approximately 8.0 cents/kWh for systems up to 10 kWp and around 7.0 cents/kWh for the portion exceeding that. Since self-consumption saves on electricity costs at current prices of 28-35 cents/kWh, maximizing the self-consumption share is crucial. A battery storage system increases the self-consumption rate from a typical 25-35% without storage to 60-80%-which significantly improves cost-effectiveness despite higher investment costs.

Legal Aspects of Solar Systems on Properties

For homeowners, rooftop installation in Bavaria is generally permit-free-exceptions apply to buildings under monument protection. In condominium associations (WEG), the installation of a PV system on common property (the roof) has required only a simple majority of the owners’ meeting since the 2020 WEG reform. The owner who installs the system bears the costs but benefits solely from the electricity and feed-in. The exact terms should be set forth in a license agreement.

For landlords, the legal situation regarding PV systems is somewhat more complex: Revenue from feed-in is taxable as income from business operations or other income-depending on the size of the system. Since 2022, PV systems up to 30 kWp (single-family homes) have been tax-exempt under Section 3 No. 72 of the German Income Tax Act (EStG). For larger systems or when the generated electricity is sold to tenants (tenant electricity model), specific tax and legal regulations apply, which we would be happy to explain to you.

Solar System as a Value-Added Factor

A well-installed and properly documented PV system has a measurable impact on property value. Appraisers factor it into the income approach through lower operating costs and into the cost approach through the system’s asset value. The energy performance certificate improves thanks to the solar system-and a better energy efficiency class (e.g., from D to B) has a proven positive impact on the selling price and rentability. Starting in 2026, energy efficiency classes will be displayed even more transparently in real estate listings, which is why investments in renewable energy are becoming increasingly strategically relevant for sellers.

Practical Tip for Property Owners in Nuremberg and Franconia

With around 1,700 hours of sunshine per year, the Nuremberg metropolitan region is one of the sunniest areas in Germany-PV systems are particularly worthwhile here. The city of Nuremberg offers additional consulting through its climate protection program; the Bavarian Solar Cadastre shows online how well your own roof is suited for solar energy. Anyone looking to sell their property should know: A documented PV system with a feed-in agreement has been proven to increase market value-we take this into account in our valuation.

For Nuremberg property owners, we also recommend checking out the N-ERGIE Tenant Electricity service: Those who install a multi-unit building PV system and supply the generated electricity to tenants via a local tenant electricity program can generate additional income while simultaneously increasing the apartment’s appeal to tenants. Although the administrative effort is higher than for self-consumption, it has become significantly more profitable due to rising electricity prices.

Frequently Asked Questions

Do I need a building permit for a solar system in Nuremberg?

In Bavaria, solar systems on residential buildings are generally exempt from the permitting process (Art. 57 BayBO). Exceptions apply to historic buildings and certain areas designated for the preservation of the townscape. We recommend checking with the relevant building authority in advance.

How does a solar system affect property value?

A well-documented and maintained PV system can increase a property’s market value by 3-8%, as it signals lower operating costs and energy self-sufficiency. It improves the energy efficiency rating on the energy performance certificate, which is becoming increasingly relevant for sales and rentals.

How much does a typical photovoltaic system for a single-family home cost?

A 10-kWp system, including installation and an inverter, currently costs approximately €12,000-18,000 net in the Nuremberg region (as of 2025). Battery storage adds another €8,000-12,000. Value-added tax has not been applicable to the system itself since 2023.

Can I claim a tax deduction for a solar system?

For private individuals who live in the property themselves, a tax exemption has applied since 2022 under Section 3 No. 72 of the German Income Tax Act (EStG) for PV systems up to 30 kWp (single-family homes). Operation is exempt from income tax, and income from feeding electricity into the grid is not taxable. Landlords, on the other hand, can claim the PV system as a business expense or through depreciation (AfA) for tax purposes, provided the system is attributable to the operation of the rental business. The tax treatment depends on your individual situation-we recommend consulting a tax advisor before investing.

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