Ariadne: Multi-Family Homes' Solar Power Potential Could Boost Germany's Renewables
Ariadne analysis reveals that 'building and tenant power projects' can be economically viable for multi-family homes, with potential internal rates of return reaching up to 18.5% under optimal conditions. However, high administrative requirements and complex processes hinder implementation. This capacity could contribute significantly to Germany's renewable energy targets.
Economists Andreas Fischer and Ralph Henger, the latter a senior economist at the Institut der deutschen Wirtschaft (IW Köln), have studied energy and building policies. While no specific analysis titled 'Building and Tenant Power in Germany' was mentioned, Henger has worked on similar projects within the Kopernikus-Projekt Ariadne framework.
Multi-family homes' roof areas hold vast potential for solar power, representing 28% of the additional solar power expansion target by 2030. Currently, this potential remains largely untapped. To facilitate more projects, standardization of measurement and billing processes, simplified regulatory requirements, and improved tenant incentives are recommended.
To encourage net-friendly consumption and feed-in adjustments, smart meters, adjustments to solar system controllability, and wider use of dynamic electricity tariffs are suggested. Efficient grid integration of solar power from multi-family homes requires technical and regulatory improvements.
With up to 60.4 gigawatts of solar power plants possible on multi-family homes' roofs, this sector could significantly boost Germany's renewable energy capacity. In 2024, 16.2 gigawatts of new solar capacity was installed, mainly from rooftop systems on single and two-family homes and free-field systems. To unlock this potential, barriers must be addressed, and supportive measures implemented.
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