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In order to generate their own electricity, private households do not necessarily have to buy a photovoltaic system: renting is also an option. This can be worthwhile – but there are a few things to consider.
According to the plans of the federal government, the share of renewable energies in electricity consumption in Germany is to increase to 80 percent by 2030. Solar energy plays an important role in this: According to the German Solar Industry Association (BSW), 159,000 photovoltaic systems (PV) for private houses were put into operation in Germany in the first quarter of the current year – an increase of 146 percent compared to the same period last year.
Accordingly, demand this year is likely to grow in double digits for the seventh time in a row. Anyone who wants to generate climate-friendly solar power privately usually pays 10,000 to 30,000 euros, including assembly and installation, for their own PV system on the roof. Alternatively, some companies offer systems for rent. How exactly does this model work?
Monthly rent for purchase, installation and maintenance
“With the rental models, it is offered that the consumer pays a fixed rent per month over a certain period, usually 20 years,” explains Stefan Hartmann from the Rhineland-Palatinate consumer center in an interview tagesschau.de. With the system, the electricity can be consumed and fed in yourself, but the household saves the additional purchase. Because most providers promise to take care of both the purchase and the previous conversion in the building.
“Most of the time, there are two main reasons why people are interested in renting a photovoltaic system: on the one hand, the low cost,” says Sören Demandt, an energy expert at the North Rhine-Westphalia consumer advice center. Many people are attracted to the all-inclusive package of the providers because they don’t want to deal with all the details. Hartmann also confirms this: “The biggest advantage is that I don’t have to take care of anything myself and that I know what I’m paying for it per month.” The second point is the type of financing, according to Demandt.
After the system has been installed by the landlord in cooperation with regional companies, customers pay between 50 and 300 euros per month, depending on the size and components. In most cases, it can also be expanded to include a power storage unit or a charging station for e-cars. Insurance, repairs and maintenance are included during the term. After that, in most cases, the system can be taken over for free or for a nominal value.
Municipal utilities also offer rental models
“In general, the use of buying or renting a PV system is the same. From an ecological point of view and with regard to self-generation of electricity, both make sense,” says consumer advocate Hartmann. A private household can thus reduce the purchase from the utility grid and instead produce climate-neutral electricity itself – and possibly save costs. In addition, the surplus electricity is fed into the public power grid, for which the owner receives remuneration.
The Hamburg company DZ-4, which was founded in 2012 and is now majority owned by the energy supplier EnBW and cooperates with the DIY chain Obi, is the pioneer of the business model in Germany. Other providers include the startup Enpal, in which ING, Blackrock and DWS are invested, the Cologne-based EnBW subsidiary yello, the young Berlin company Eigensonne and the startup zolar, also from Berlin. But some regional basic suppliers also have offers for rent in their portfolio – such as Stadtwerke Münster since May 2021.
“We perceive that households have less money on the one hand and on the other hand the desire for all-round carefree care is growing,” said a spokeswoman tagesschau.de. According to the company, 41 PV systems have been installed and 114 leasing contracts have been concluded since it was introduced: “We didn’t really do much to promote the offer – so we’re satisfied with the demand.” The trend towards integrated energy services is growing, which is why Stadtwerke Münster is about to start “a similar leasing model for heat pumps”.
Probably not prevailing Model for PV systems
According to the specialist portal efahrer.chip.de, the demand for rented solar systems has increased tenfold over the past three years. According to the BSW, concrete figures on the market share of rented PV systems are not available. However, the association refers to a self-commissioned survey of 1,000 property owners, according to which 21 percent would rent a solar system long-term.
“The expansion of photovoltaics is booming and rent is a part of it,” says Demandt from the consumer advice center in North Rhine-Westphalia. However, the model does not currently stand out and, in his opinion, will probably not become the predominant form of use. “In our advisory work, there is a constant but low number of inquiries about renting. This is an option for five to ten percent of consumers,” adds Hartmann.
One limitation for Demandt is the long contract term of 15 to 25 years. “This commits you to a provider and its special services and technology over a very long period of time.” If the house is sold, the new owner must also take over the contract, which can lead to complications. In addition, the tenant is not the owner of the facility, adds Hartmann. “You don’t have sovereignty over the system and you can’t alone decide on expansions.”
High costs compared to grid purchase and system purchase
According to Demandt, the biggest negative sticking point is the high costs: “The systems are often not worthwhile from a purely economic point of view.” Especially with a rather low power consumption without an electric car or heat pump, the model is not necessarily worth renting. “Then you pay more for several years or even over the entire period than you would have paid for the electricity from the grid.”
Hartmann emphasizes that the expenses over the 20 years are usually higher compared to the purchase. Households that cannot easily afford the purchase should therefore first consider taking out a subsidized loan, for example from the state KfW.
Tips for Consumers
However, the rental model could be interesting for people who are more risk-averse and have little equity, says energy expert Hartmann. “In the case of a rental system, responsibility and follow-up costs lie with the landlord. During the term, he must replace defective components.” Like the agreement on a purchase price, this should definitely be in the contract after expiry.
In general, the respective offer must be examined in detail because of the comparatively high costs and the prices of individual components must also be compared, advises Demandt. Because the price differences between the individual providers are large. “You should always compare the euro per kilowatt of installed capacity, i.e. the benefit in relation to the costs.”
“Often there are bait offers from companies that include a low price for the first few years, which then increases,” warns Hartmann. When considering the profitability, the consumer should also question the provider’s calculations and realistically assess the share of self-consumption and the development of the electricity price.