Energy Sharing 2026: How do you share solar power under Section 42c of the Energy Industry Act (EnWG)?
Energy sharing has been permitted since June 1, 2026, under Section 42c of the Energy Act (EnWG)—here’s how to account for solar power shared via the public power grid.
The short answer
Energy Sharing refers to the sharing of solar power via the public grid. As of June 1, 2026, distribution system operators must, pursuant to Section 42c of the Energy Economy Act (EnWG), enable the distribution of renewable electricity to participants in the same balancing area on a net-metering basis. Unlike tenant electricity, this model does not impose an obligation to provide full service, nor does it offer a subsidy—grid fees and surcharges are payable in full.
Energy sharing has been legally permitted in Germany since June 1, 2026. Under the new Section 42c of the Energy Industry Act (EnWG), operators of photovoltaic systems are permitted to share their solar power with others via the public power grid. This article explains how energy sharing works, what requirements apply, what the economic limits are, and for whom this model will be suitable in 2026. If you’d like to determine whether installing your own system is worthwhile, our overview of PV systems for your business can help.
What is Energy Sharing?
In energy sharing, several parties—households, community energy cooperatives, or small businesses—join forces. One or more renewable energy systems generate electricity, which is credited to the participating consumers on a net basis, rather than being fed into the grid via a dedicated line. The core idea is participation in the energy transition: Those who operate a system share surplus solar power locally instead of feeding it into the grid at low feed-in rates.
This creates a new way for system owners to make better use of their own solar power. For participants who don’t have their own system, Energy Sharing offers the opportunity to purchase cheaper, green grid electricity from their neighborhood.
Energy Sharing in Germany: The Legal Situation Starting in June 2026
The legal basis is the new Section 42c of the Energy Industry Act (EnWG), officially titled “Shared Use of Electrical Energy from Facilities for the Generation of Electricity from Renewable Energy Sources.” It was introduced by Article 1, No. 68, of the Act Amending Energy Industry Law to Strengthen Consumer Protection in the Energy Sector and to Amend Other Energy Law Provisions of December 18, 2025—adopted by the Bundestag on November 13, 2025, and promulgated on December 22, 2025 (Federal Law Gazette 2025 I No. 347). On November 21, 2025, the Bundesrat did not refer the matter to the Mediation Committee; the Act has been in force since December 23, 2025. Our article on the 2025 EnWG Amendment summarizes the other changes introduced by the amendment.
Implementation will take place in two phases: Starting in June 2026, distribution system operators must enable energy sharing within their own balancing area. Starting in June 2028, this will be expanded to include the directly adjacent area of the same control zone. Important: Energy sharing does not stem from a “Solar Package II”—there is no draft bill by that name (as of September 28, 2026). Under European law, Section 42c of the German Energy Act (EnWG) primarily implements Article 15a of the Internal Electricity Market Directive (EU) 2019/944, inserted by Directive (EU) 2024/1711 (transposition deadline: July 17, 2026); in addition, the Renewable Energy Directive (EU) 2018/2001 (RED II) applies, with its rules on renewable energy communities.
Energy Sharing, Tenant-Generated Electricity, and Community-Based Building Energy Supply
In Germany in 2026, there will be three legally distinct ways to share solar power with third parties. If you confuse them, you’ll end up planning based on the wrong model. If electricity is distributed only within a building without connecting to the public grid, that is not energy sharing; in such cases, the options are shared building supply (Section 42b EnWG) or tenant electricity (Section 42a EnWG).
| Model | Paragraph | Network Usage | Full coverage | Additional Grant | In effect |
|---|---|---|---|---|---|
| Tenant Electricity | § 42a of the Energy Industry Act (EnWG) | Building/Neighborhood | yes | yes | established |
| Community Building Services | § 42b of the Energy Industry Act (EnWG) | inside the building | no | no | 16.05.2024 |
| Energy Sharing | § 42c of the Energy Industry Act (EnWG) | public network | no | no | December 23, 2025 (Mandatory for distribution network operators as of June 1, 2026) |
| Source: Sections 42a–42c of the Energy Industry Act (EnWG) (gesetze-im-internet.de), as of September 2026. | |||||
Tenant electricity models allow residents of apartment buildings to use solar power generated directly from the building’s roof—with a requirement to supply all their electricity, but in exchange for an additional government subsidy. Community building supply distributes solar power within a building without connecting to the public grid. Energy sharing goes a step further and uses the public power grid—which is particularly useful for multi-site arrangements such as neighborhoods.
How Does Energy Sharing Work? Here's How Electricity Is Shared
Setting up an energy-sharing community involves four steps: First, generators and consumers form a community within the same balancing area. Then, the photovoltaic system—optionally supplemented by storage systems that store only renewable electricity—feeds electricity into the public grid. Generation and consumption volumes are recorded at quarter-hourly intervals and allocated according to a defined allocation formula. Finally, grid operators and contracted service providers handle the energy management processes and billing.
Legally, Section 42c of the Energy Act (EnWG) requires two contracts between the operator and the customer: a supply contract and a contract for shared use, which must at least specify the scope of use, the allocation formula, and whether a fee—in cents per kilowatt-hour—is to be paid (Section 42c(1)(2) and (3), (3) EnWG). The operator may commission a service provider to handle grid access, contracts, billing, metering, and plant operation. The restrictions on non-commercial operation and on small and medium-sized enterprises do not apply to such service providers (Section 42c(5) EnWG). Municipal utilities, energy suppliers, and specialized companies may therefore participate—as service providers, not as operators.
A Prerequisite for Energy Sharing: The Smart Metering System
A key technical requirement is metering: Section 42c of the German Energy Act (EnWG) requires either a meter reading or a quarter-hourly power measurement at every consumption point and at the facility (Section 42c(1)(6) and (7) EnWG)—in practice, this usually involves a smart meter; for larger consumers, an RLM measurement is required. Conventional Ferraris meters with a rotating disc are not suitable because they do not provide quarter-hourly time series data. The smart meter rollout is therefore the key prerequisite for the practical implementation of energy sharing. Our article on the 2026 smart meter mandate explains who will receive which metering system and by when.
Benefits and Opportunities of Energy Sharing
An overview of the key opportunities—always within the constraints outlined in the section “The Challenges”:
- Local Value Creation: Excess solar power remains in the region and replaces more expensive grid electricity for participants.
- Beyond the property line: Unlike with GGV and tenant electricity, the generator and consumer do not have to be located in the same building—but energy sharing is only possible within a single balancing area.
- Free pricing: The electricity rate per kilowatt-hour is negotiable, down to zero euros.
- Can be combined with storage systems: Energy storage systems shift solar power to times when the community is using it.
- Greater Acceptance: Participation in energy-sharing communities and community energy cooperatives that finance and operate wind or solar farms can increase acceptance of new facilities.
The Challenges: Grid Fees, Processes, and Time Frame
The most important framework conditions at a glance:
- Energy sharing is only possible within a single balancing area (and, starting in 2028, also in adjacent areas within the same control zone).
- A measurement every 15 minutes is required; in practice, this is usually done using a smart meter—Ferraris meters are not suitable.
- Grid fees and surcharges also apply to Energy Sharing. To put this in perspective: For a household with an annual consumption of 3,500 kWh, grid fees have averaged about 9.2 ct/kWh so far in 2026, with an average electricity price for new customers of 37.0 ct/kWh (BDEW Electricity Price Analysis, August 21, 2026, data as of August 2026). The price between the operator and the customer is freely negotiable and determines whether sharing is worthwhile.
- The law does not provide for a separate subsidy—as is the case with tenant-generated electricity—reduced grid fees, or an exemption from surcharges for energy sharing.
Because the shared electricity is supplied to third parties via the public grid, this constitutes direct marketing under Section 3(16) of the EEG: There is no feed-in tariff for these quantities (Section 21(2) EEG); as a rule, the system or a fixed percentage of its electricity is classified as other direct marketing (Sections 21a, 21b EEG). Grid fees are not reduced. For electricity from systems with a rated output of up to 2 MW, an electricity tax exemption under Section 9(1)(3)(b) of the Electricity Tax Act (StromStG) may be applicable, provided that the operator supplies customers within a radius of up to 4.5 km from the system (Section 12b(3) of the Electricity Tax Regulation (StromStV)). One of the requirements is a permit from the main customs office (Section 9(4) of the Electricity Tax Act [StromStG]); furthermore, no other persons may be involved in the supply relationship (Section 12b(2) of the Electricity Tax Regulation [StromStV]). The customs administration has not yet published information on whether and how this applies to grid-based energy sharing (as of September 28, 2026)—this must be clarified on a case-by-case basis with the Main Customs Office or a tax advisor.
Added to this are ongoing processes. The energy market processes assign each consumption point to exactly one supplier; they do not provide for shared grid usage through the grid operator. The Federal Network Agency does not intend to change this either: According to its announcement dated July 7, 2026, energy sharing in the existing market model is handled through the so-called service model, typically with a direct marketer or supplier acting as the service provider (Announcement No. 73); there are no additional implementation obligations for grid operators under this model. However, suppliers are not required to offer this service. Even before this clarification, industry associations did not expect a standardized mass market to emerge before 2027 (ZfK, June 5, 2026); on September 25, 2026, the Bundesrat also still referred to “significant implementation difficulties” (Bundesrat, Printed Paper 470/26 (B)).
Who Energy Sharing Is Suitable For
Section 42c of the Energy Industry Act (EnWG) is designed to promote participation: The operator must be a natural person or a corporation whose members are all end consumers or legal entities governed by public law—and the operation of the facility must not serve predominantly commercial purposes. Companies—whether as customers or as shareholders in an operating company—are eligible only if they are micro, small, or medium-sized enterprises as defined by EU Recommendation 2003/361/EC (Section 42c(2) EnWG). This makes energy sharing particularly attractive for community-based energy initiatives, cooperatives, residential neighborhoods, and municipalities.
Businesses that want to distribute their own solar power within a building among multiple users are often better off using the shared building supply model (Section 42b) or traditional self-consumption. Investors in large ground-mounted solar farms are currently hardly affected by this model: The lack of preferential treatment and the requirement to remain within the metering area make energy sharing unattractive for solar farms at present. The expansion scheduled to take effect in 2028 is the key development to watch in this regard.
Important Note: This article is intended solely for general informational purposes and does not constitute investment, tax, or legal advice. Information regarding returns, income, proceeds, lease payments, and costs consists of sample calculations or market observations as of the date indicated and does not constitute a guarantee of future results; the actual values that can be achieved depend on location, system design, contract terms, and market developments. For your specific situation, please consult a licensed tax advisor, attorney, or investment advisor. All information is provided without warranty. As of September 28, 2026.
Sharing Solar Power—But Plan It Right
Whether it's energy sharing, community-based building energy supply, or self-consumption with storage: We design, build, and operate your photovoltaic system and find the right solution for your project.
Frequently Asked Questions (FAQ)
What is Energy Sharing?
Energy sharing is the shared use of electricity generated from renewable energy sources via the public power grid. Solar power generated by an individual is allocated to multiple people within the same balancing area for accounting purposes. This model is governed by Section 42c of the Energy Industry Act (EnWG) and has been in effect since June 1, 2026.
Since when has energy sharing been allowed in Germany?
Effective as of June 1, 2026: Since then, distribution system operators have been required to enable energy sharing within their balancing area (Section 42c(4) of the Energy Industry Act (EnWG)). The provision itself has been in effect since December 23, 2025; the Bundestag passed the law on November 13, 2025, and it was promulgated on December 22, 2025 (Federal Law Gazette 2025 I No. 347).
Is energy sharing worth it for operators of large solar power plants?
Not as an operator: Section 42c of the Energy Industry Act (EnWG) excludes predominantly commercial operation of a facility (para. 1, no. 5). In addition, full grid fees apply without a subsidy surcharge, and the facility is tied to the balancing area. For commercial self-supply, communal building supply under Section 42b EnWG or traditional self-consumption is usually the better option.
What is the difference between energy sharing and tenant-generated electricity?
Tenant Electricity (§ 42a) supplies tenants in the same building or neighborhood without access to the public grid, with a full-supply obligation and a subsidy. Energy Sharing (§ 42c) uses the public grid, has no full-supply obligation, but does not receive a subsidy.
Will Energy Sharing be economically viable in 2026?
That depends on the individual case. Since full grid fees and surcharges apply and there is no subsidy program, a careful cost-benefit analysis is necessary. The industry does not expect standardized solutions for the mass market before 2027.
Can I sell my solar power to my neighbors?
Yes. Through Energy Sharing, solar power can be transferred for accounting purposes to other individuals in the same accounting area—based on a supply contract and a contract for shared use. The price is freely negotiable and can even be zero euros.
Conclusion: Energy sharing is here—but with a sense of proportion
Since June 2026, Energy Sharing has created a new way to share solar power through the public grid. This represents a real opportunity for community-based energy initiatives, neighborhoods, and municipalities; however, the full burden of grid fees and the market processes that are still being finalized require a thorough cost-benefit analysis. For commercial self-supply, community-based building supply or traditional self-consumption often remain the more viable models.
If you're ready to take the next step: a solar power system for your business. The page on rooftop solar systems explains the basics of roof coverage; you can get a personalized assessment via the contact page.
References
- § 42c EnWG – Shared Use of Electrical Energy (gesetze-im-internet.de)
- § 9 of the Electricity Tax Act (StromStG) – Tax Exemptions (gesetze-im-internet.de)
- FfE Research Institute – Energy Sharing under Section 42c of the Energy Act (EnWG) (2026)
- Consumer Advice Center – Energy Sharing 2026
- dena Future Energy Lab – FAQ: Energy Sharing (accessed September 28, 2026)
- Federal Law Gazette 2025 I No. 347 – Act Amending Energy Industry Law of December 18, 2025
- Federal Network Agency – Notice No. 73 on Energy Sharing (July 7, 2026)
- ZfK – What’s Still Holding Back Energy Sharing (June 5, 2026)
- BDEW – Electricity Price Analysis (August 21, 2026)
- Federal Council – Printed Paper 470/26 (B), Statement on the Draft EEG (September 25, 2026)
