According to Eurostat data, over 50% of Europe’s 700+ million residents live in apartments. On one hand, this group typically has lower average incomes and lacks the space for rooftop solar, making high upfront costs prohibitive. On the other hand, they’re highly price-sensitive and eager to transition to cleaner energy while cutting bills. Since traditional home energy storage doesn’t fit these needs, balcony power plant systems emerged as the ideal solution. These systems need no complex wiring or special expertise—just 1-2 solar panels, a microinverter, mounts, and cables for a simple plug-and-play setup. At €600–€1,200 per kit, with subsidies covering a large portion of costs in places like Germany, the economics are compelling. That’s why balcony power plant systems are now the go-to energy solution for apartment dwellers.
1. Here’s an overview of key policies for balcony power plant systems in several European countries:
Germany In January 2023, Germany’s VDE officially drafted a document proposing simplified rules for balcony PV systems to accelerate the adoption of small-scale PV systems while ensuring safety. Key requirements include:
Raising the power limit from 600W to 800W, aligning with European standards, which enables manufacturers to develop and sell plug-in solar devices as complete systems. Allowing 800W small PV systems to work with any electricity meter type, eliminating the need to wait for smart meter upgrades. Simplifying registration and commissioning processes, requiring only notification to the Federal Network Agency for micro-generation systems. While professional installation is preferred, the use of Schuko plugs is permitted to reduce costs. In April 2024, Germany’s Federal Ministry for Economic Affairs and Climate Action officially approved the Solarpaket 1 plan, significantly streamlining regulations and installation procedures. Key measures:
Switching from registration to a simple notification system, expanding simplified grid connection—users no longer need to register with grid operators for balcony PV systems with DC capacity ≤2kW, and the inverter capacity was raised from 600W to 800W. Permitting balcony PV systems to be plugged directly into sockets without costly electricians or long wait times, enabling self-installation. Bidirectional smart meters are no longer mandatory. Expanding insurance coverage. On May 16, 2024: Germany enacted an EEG amendment for plug-in PV systems with total capacity ≤2kW and inverter output ≤800VA. Registration with grid operators was abolished, requiring only entry in the Federal Network Agency’s central market registry. Users can now install systems themselves by plugging directly into sockets without an electrician.
On July 4, 2024: Germany’s lower house passed a legal amendment allowing apartment owners and tenants to install solar systems on balconies. Previously, tenants/co-owners needed explicit consent from landlords/homeowner associations. Now, plug-in PV systems are classified as protected rights, meaning landlords/associations cannot unreasonably deny installations.
Austria In January 2024, Austria exempted small PV systems (≤35kW) from VAT until December 31, 2025. In July 2024, balcony PV systems ≤800W were exempted from approval. Starting September 1, 2024, other members of apartment owner associations cannot unreasonably deny plug-in PV installations on balconies/terraces (excluding tenants). Previously, unanimous consent was required.
France
Power limits & grid rules: The approval-free threshold for balcony PV systems is ≤800W—only a simplified declaration to the grid operator is required. Grid connection: Direct plug-in via Schuko sockets (must include anti-backflow devices) is allowed, but total output must not exceed 80% of household load. Subsidies: Subsidies cover 30%-50% of costs, scaled by income (higher for low-income households). As of 2024, the maximum subsidy is €500 per system (certified equipment required). VAT reduction: PV equipment VAT was lowered from 20% to 5.5% (under “energy transition” category). Installation rights: The 2023 Renewable Energy Acceleration Law prohibits unreasonable refusal by homeowner associations (Syndicat); installations must not compromise building aesthetics or structural safety (historic buildings may require extra approval).
Italy
a.Installation and Grid Connection Rules Power Limit: Systems with single-unit power under 800W qualify for a simplified procedure (no building permit required) but must be filed with the grid operator. Systems with total power under 6kW can connect to household circuits but require a reverse-current protector. Plug-and-play systems: Connection via standard outlets (Schuko or Italian Tipo L) is permitted, provided they comply with CEI 10-21 safety standards.
b. Financial Incentives Super Bonus (2024 Update): balcony power plant panel systems qualify for a tax credit covering up to 110% of system costs (distributed over 5 years). Conditions: Must be bundled with building energy efficiency upgrades (e.g., wall insulation, heat pump upgrades). Standard Ecobonus: Independent balcony PV systems qualify for a 50% tax deduction (capped at €96,000 [approx. $103,000] per household).
c. Net Metering and Excess Power Purchase Scambio sul Posto (SSP) (Italy’s net metering program): Excess power is credited at market rates (~€0.12/kWh) against electricity bills, settled annually. Requires a bidirectional meter (measures both incoming and outgoing power; cost covered by the grid operator).
d. Apartment Installation Rights 2022 Energy Communities Act: Condominium owners may install balcony power plant panel systems without HOA approval, provided structural integrity is maintained. Promotes creation of “renewable energy cooperatives” to share PV-generated electricity.
2. Germany is currently a pioneer in balcony power plant systems. Let’s examine
Germany’s installation landscape as a case study: Beginning in 2023, policy changes triggered rapid growth, with approximately 213,000 units installed in just the first half of 2024—nearly matching 2023’s total. By mid-2024, Germany had about 565,000 operational balcony PV systems. 2022-2024 Germany Balcony PV nstallations(10k units) As German manufacturer Meyer Burger observed: “Their success stems from enabling solar access for previously excluded populations.” With 41.3 million German households, the current 2% penetration rate leaves substantial room for growth. Industry analysts project the following installation volumes and market adoption rates. Industry analysts project the following installation volumes and market adoption rates.
3. Storage or no storage Across Europe, while Belgium implemented restrictions due to grid stability concerns, Austria, France, Italy, Poland and Luxembourg have enacted supportive policies. Notably, Austria committed to installing 1 million PV systems by 2030. Clearly, balcony power plant is emerging as an untapped market.
Early balcony systems featured just micro inverters without storage. However, as adoption spreads, these highly DIY-friendly setups increasingly incorporate storage, evolving into balcony power plant+storage systems. Consider these tradeoffs:
Advantages: • Stores surplus energy for nighttime use, boosting efficiency • Increases self-consumption rates, improving ROI
Disadvantages: • Higher upfront costs than standalone systems • Potentially lower lifetime savings compared to whole-home storage
Crunching the numbers: Storage or no storage?
Standalone systems: For an 800W system (€700/kW), the payback period ranges from 4.5 years (30% consumption) to 2 years (70% consumption). Without storage, returns depend primarily on usage patterns rather than system size. Solar+storage systems: At €700/kW for PV and €650/kWh for storage (0.8kW baseline), increased capacity may extend payback periods but improves storage economics. Raising consumption from 30% to 60% can boost lifetime savings while potentially shortening payback versus PV-only systems. Market players fall into three categories: • Brand manufacturers • Microinverter specialists • Residential storage providers
The sector’s evolution—from homeowners to renters, B2B to B2C, professional installation to DIY—naturally favors established brands. Several top performers emerged in Europe’s Q3 2024 balcony storage rankings, with detailed product comparisons available. Several top performers emerged in Europe’s Q3 2024 balcony storage rankings, with detailed product comparisons available.
Comparison of Solar Storage Products for Balconies: A Head-to-Head Look at Top Brands
Comparison of Solar Storage Products for Balconies: A Head-to-Head Look at Top Brands
4. Summary: balcony power plant offers urban residents convenient, affordable sustainability with massive policy-driven potential. Here’s where the market is headed:
Microinverters gaining traction: The 600-800W power range and safety requirements make these ideal for balcony applications. Expect shipments to surge post-2025. Storage integration: As a residential storage subset, solar+storage systems promise greater efficiency and value. Government incentives: Expanding European policies should sustain growth across established and emerging markets.