Photovoltaic Contracting 2026: Which Models Make Financial Sense for Your Business?
Photovoltaic contracting shifts the investment in and operation of a solar system to a service provider—you simply purchase the electricity generated by your own roof. Why the new industrial electricity rate excludes small and medium-sized businesses, what the four models are, and when investing on your own is still the better option.
The short answer
Photovoltaic contracting shifts the investment in and operation of a solar system to an external service provider—you simply purchase the electricity generated by your own roof, typically for 8 to 14 ct/kWh instead of the 16.7 ct/kWh charged for grid-purchased electricity (BDEW, April 2026). Since the 2026 industrial electricity price provides relief to only 91 energy-intensive sectors, self-consumption remains the key cost-saving measure for small and medium-sized businesses.
This guide is intended for B2B decision-makers in small and medium-sized businesses, the manufacturing sector, and the real estate industry who are evaluating whether photovoltaic contracting is a viable alternative to making their own investment. You will learn about the four contract models currently available on the market, how to calculate profitability, how the German Commercial Code (HGB) and IFRS 16 treat these contracts, which eight contract clauses determine the outcome, and when making your own investment remains the better choice.
What is photovoltaic contracting?
The contractor plans, builds, operates, and maintains the photovoltaic system. The building owner provides the space and purchases the solar electricity generated. This division of roles is at the heart of the model and structurally distinguishes it from the traditional self-investment model.
Five sentences summarize the principle:
- The contractor is responsible for the design, construction, and operation of the PV system. The contractor is also responsible for maintenance, insurance, and commercial management. The customer bears no CAPEX.
- Photovoltaic contracting requires no upfront investment. Equity capital remains tied up in the core business, and credit lines are not drawn upon.
- The building owner makes the roof space available for a specified contract term. Terms typically range from 10 to 20 years, usually 20 years with an option to extend; in the case of large industrial facilities, terms may occasionally extend up to 25 years.
- The solar power generated is primarily consumed on site. The user is the consumer—typically the building owner, or, in the case of rented properties, the tenant as the on-site operator.
- Excess electricity can be fed into the public grid. Any electricity that the facility does not consume at the same time is either fed into the grid or sold; the remaining electricity needs continue to be met by the grid.
The agreed-upon price per kWh can be calculated for the entire term and is lower than the grid purchase price—which makes energy costs predictable.
Contracting shifts the investment question to a procurement question: not “Should we buy a PV system?” but “At what price will a partner supply us with electricity from its own roof?” The business remains the user of the system without owning it. The site’s energy supply thus continues to rest on two pillars.
PV Contracting, Solar Contracting, or Energy Contracting?
These terms generally mean the same thing in the German market. "PV contracting " and "solar contracting" refer to the supply of electricity from a solar power system at the point of consumption. "Energy contracting " is the umbrella term and also encompasses heating, cooling, and compressed air; the solar variant is a part of it.
What matters is not the label, but the scope of services: If you’re looking for a pure supply contract without responsibility for construction or operation, you’re looking for an electricity supply contract. If you expect a complete package that includes installation, maintenance, insurance, and billing, you’re looking for a contracting arrangement. Therefore, when reviewing a proposal, be sure to ask specifically which responsibilities fall to the energy provider or service provider and which remain with the client.
Distinction from the PPA
In terms of content, contracting overlaps with a Power Purchase Agreement (PPA), but is not identical to it. A PPA refers to a bilateral electricity supply contract; the supply can take place on-site behind the meter or off-site via the grid. Photovoltaic contracting additionally encompasses the full service package of construction, operation, and maintenance and almost always takes place on-site. An on-site PPA is thus effectively a variation of energy supply contracting. Our page on solar power without equity investment illustrates what such a model looks like in practice.
The four model variants in the B2B market
The options differ in three respects: who owns the facility, who bears the financial risk, and how it is accounted for. The choice depends on the tax situation, whether the property is owned or leased, and the company’s accounting policy objectives.
| Model | Property Investment | Economic Risk | Treatment under the German Commercial Code (HGB) | Typical Applications |
|---|---|---|---|---|
| Energy Supply Contracting (On-Site PPA) | Contractor | Contractor | Off-balance | Industry and logistics with high daily consumption |
| Facility Contracting (Lease Model) | Contractor leases the property; the customer becomes the operator | Shared | Mostly On-Balance | Businesses that want to maximize their self-generated electricity privilege and electricity tax exemption |
| Operational Management Contracting | Customer | Customer | The system remains active | Businesses with their own facilities that only outsource operations |
| Energy-Saving Contracting (Performance) | Contractor | Contractor, as measured by cost savings | Off-balance | Facilities with High Efficiency Potential in the Energy Mix |
| Roof Lease | Contractor | Contractor | Off-Balance for the Owner | Owners without their own electricity needs (logistics, multi-tenant) |
| Classification: Logic Energy based on 2026 industry contract practices. | ||||
Energy supply contracting is the most common form among small and medium-sized businesses: The contractor builds and operates the facility, and the company purchases electricity at a fixed price per kWh. This is the simplest arrangement from a financial and tax perspective because it can be structured as a pure service contract.
Plant contracting is the right choice if you want to take full advantage of the tax benefit for self-generated electricity and the electricity tax exemption under Section 9(1)(3) of the Electricity Tax Act (StromStG). The company becomes the legal operator—with all the associated obligations, including registration in the market master data registry, direct marketing of electricity in excess of the mandatory threshold, and ensuring operational safety.
Operational management contracting is purely a service: The facility belongs to the company, while the service provider handles maintenance, monitoring, insurance, and administrative tasks.
Energy-saving contracting originated in the field of energy efficiency consulting and is usually combined with energy efficiency measures. Payment is tied to verifiable savings—a more complex approach, but one that is incentive-compatible.
In addition, there is the pure roof lease option for owners with no significant electricity needs of their own—a typical scenario in multi-tenant logistics. The owner receives a fixed lease payment, and the contractor sells the electricity to other customers.
Distinction from Residential Settings: When solar energy is supplied to residents of a residential building, a separate regulatory framework applies under the “tenant electricity” scheme, with different reporting and billing requirements. This article deals exclusively with commercial scenarios—the issue rarely arises for single-family homes anyway, since the system sizes are typically below the minimum thresholds set by contractors. If your business is a tenant rather than an owner, contracting is still possible: The contract is tied to the property, but the owner’s written consent is required.
Contracting, Leasing, or Renting: A Comparison of the Terms
In practice, this difference is crucial because it determines operators’ obligations, tax incentives, and accounting treatment:
- Photovoltaic Contracting (Electricity Supply): You pay per kilowatt-hour. The contractor remains the operator and assumes the technical, yield, and maintenance risks. No CAPEX, no operator obligations.
- Leasing or renting a solar power system (system transfer): You pay a fixed lease or rental payment and generally become the system operator. The electricity generated belongs entirely to you—including feed-in revenues, but also including reporting obligations and the risk associated with revenue.
- Leasing Roof Space: The Reverse Approach. You simply provide the space and receive lease payments; the electricity goes to a third party.
Anyone who wants to lease a solar system to take full advantage of self-generated electricity will end up with system contracting. Anyone who simply wants affordable electricity without the hassle of operation will opt for energy supply contracting. The question of “rent or buy” ultimately comes down to the same factors as the contracting decision: the alternative return on one’s own capital and the ability to utilize tax incentives.
Why the 2026 Industrial Electricity Price Excludes Small and Medium-Sized Businesses
This is the most significant change in the baseline scenario for 2026—and so far, it has been largely overlooked in the debate on energy contracting. Those who do not operate in one of the 91 listed sectors will continue to pay around 16.7 ct/kWh (BDEW Electricity Price Analysis, April 2026), while direct competitors and customers in energy-intensive industries will see their rates reduced to 5 ct/kWh.
For small and medium-sized businesses, logistics companies, tradespeople, and retailers, the conclusion is simple: there is no government relief available for electricity prices. The only remaining way to influence electricity costs is through on-site generation—either through a direct investment or via a power-purchase agreement. The option of shifting part of one’s electricity supply to one’s own roof thus shifts from a matter of convenience to a matter of competitiveness.
Two additional relief measures apply independently of this and benefit a broader group: The electricity tax for the manufacturing sector, as well as for agriculture and forestry, will be permanently reduced to the European minimum rate of 0.50 euros/MWh starting in 2026 (previously 20.50 euros/MWh), applicable for annual consumption of 12,500 kWh or more. In addition, there is a subsidy for transmission grid fees and the elimination of the gas storage surcharge.
Market Dynamics in 2026: On-site Generation Grows, Large-Scale PPA Contracts Shrink
Market dynamics are characterized by a two-tiered structure that gets lost in the headlines. The report “Solar PPA Market Collapses” refers to utility-scale off-site PPAs for ground-mounted plants larger than 5 MW. Anyone who enters into a fixed-price PPA in this segment bears the risk that the plant will generate power during hours with negative electricity prices without generating any revenue. The dena estimates that by 2025 there will be only 27 PPAs totaling 1.3 GW, compared to 51 agreements totaling 2.2 GW in the previous year.
Onsite contracting structurally mitigates this risk. The electricity first goes toward self-consumption behind the meter, thereby saving on the purchase price of approximately 16.7 ct/kWh. Only the surplus is sold or fed into the grid. Given the self-consumption rates typical of small and medium-sized businesses and the logistics sector, the revenue base is thus largely protected against the risk of negative prices. Our guide to negative electricity prices provides a more in-depth look at how negative prices affect revenue.
The market potential in the commercial roofing segment remains largely untapped: German industrial and logistics roofs larger than 5,000 m² offer a theoretical potential of 36.6 GW across 362.8 million m² of roof area—less than ten percent of which is covered with PV. Our logistics guide to photovoltaics on warehouse roofs explains exactly what this means for warehouse roofs.
Profitability: Electricity Price Spread and Key Metrics
Profitability depends on three key factors: the fixed electricity price, the achievable self-consumption rate, and the contract term. According to Fraunhofer ISE, the levelized cost of electricity for a rooftop system ranges from 6 to 14 ct/kWh; the difference between this cost and the contracting price is the provider’s margin, which covers investment, financing, maintenance, insurance, and a risk premium.
Expected yield varies depending on location, orientation, and shading: In southern Germany, 950 to 1,050 kWh per kWp per year is realistic, while in northern Germany, it is more likely to be 850 to 950. Our article on specific yield per kWp covers the fundamentals of this metric.
| Position | Value | Note |
|---|---|---|
| System size | 500 kWp | Typical warehouse roof size in the logistics sector |
| Annual Electricity Production | ~475,000 kWh | 950 kWh/kWp, Southern Germany |
| Self-consumption rate | 60–70% | Day Shift Logistics with Sorting and Refrigeration |
| Absolute self-consumption | ~285,000 kWh/year | Consumed immediately after the meter |
| Contracting Electricity Price (Example) | 10 ct/kWh | Industry range: 8–14 ct/kWh |
| Online Shopping Comparison | 16.7 ct/kWh | BDEW Electricity Price Analysis, April 2026 |
| Annual Savings Spread | ~19.100 € | 6.7 ct/kWh × 285,000 kWh of self-consumption |
| Impact on liquidity | ~500.000 € | Stay focused on the core business instead of CAPEX |
| CAPEX Expenditures | 0 € | The contractor bears the cost of the investment |
| Simplified model calculation. Sources: BDEW Electricity Price Analysis, April 2026; Fraunhofer ISE. No guarantee of future results; contract prices are calculated on a case-by-case basis. | ||
This calculation is a conservative estimate. With a higher self-consumption rate and a system size of 1 MWp, annual savings range from 40,000 to 60,000 euros; over 20 years, cumulative savings amount to between 800,000 euros and 1.2 million euros. The real driver is not the price per kWh, but the permanent reduction in grid consumption.
Important for the evaluation: Over the entire term, contracting is generally more expensive than in-house investment when using a full-cost accounting approach, because the contractor’s margin is factored into the electricity price. The switch is worthwhile if the return on equity in the core business exceeds the cost of this margin—or if the tax depreciation benefits cannot be fully utilized anyway. Our guide to photovoltaics and taxes explains which situations these are.
An Overview of the Pros and Cons
Arguments in favor of this are:
- No acquisition costs and no tied-up capital—the money stays in the core business.
- Reduction in electricity costs for the portion used for personal consumption, regardless of market price trends.
- The service provider is responsible for the planning, implementation, maintenance, and upkeep of the system.
- A better carbon footprint with verifiable proof at the point of consumption.
- No technical risk: The contractor is generally responsible for lost revenue and repairs.
Arguments against this are:
- Long-term contracts ranging from ten to twenty years, and in some cases twenty-five years.
- No ownership of the facility during the term—the contractor retains the appreciation in value.
- Over the entire term, contracting is usually more expensive than purchasing when calculated on a full-cost basis, because the margin is built into the electricity price.
- You are not eligible for tax depreciation benefits as long as you are not the owner.
- Limited flexibility regarding the sale, renovation, or change of use of the building.
One argument that applies to both approaches: Grid costs are rising. The BDEW commissioned Consentec and Frontier Economics to analyze this trend based on grid development plans—the results show a gradual increase in annual grid costs through 2045 across all voltage levels. The more expensive grid access becomes, the more valuable each self-generated kilowatt-hour becomes, regardless of the ownership model.
Accounting in accordance with the German Commercial Code (HGB) and IFRS 16
Medium-sized GmbHs prepare their financial statements in accordance with the German Commercial Code (HGB) and treat genuine energy supply contracting arrangements as service contracts: The facility belongs to the contractor, and the electricity bill is recognized as a current expense on the income statement. Total assets, the equity ratio, and debt ratios remain unaffected—which, for credit-sensitive companies, often makes the difference between a green and a red credit rating.
Under IFRS 16, operating leases have no longer been recognized as off-balance-sheet instruments since 2019. If a contract grants the right to use an identifiable asset over its term, the lessee must recognize a right-of-use asset and a lease liability. Three criteria determine the classification:
- Identification of the asset. Is the asset specifically identified and non-substitutable during its useful life? A permanently installed rooftop system is clearly identifiable.
- Control. Who makes the operational decisions regarding deployment? If the contractor retains key control rights—such as direct marketing, maintenance planning, and generation strategy—this argues against leasing.
- Substitution rights. Is the contractor permitted to replace the equipment with comparable equipment without the customer’s consent?
In practice, auditors make decisions on a case-by-case basis. Equipment contracting is almost always classified as a lease because the customer becomes the legal operator. Energy supply contracting has a good chance of being classified as a service—provided that the contractor retains control and the contract is worded as an electricity supply agreement, not as the transfer of equipment. Anyone consolidating into a capital-market-oriented corporate group should coordinate the classification before signing the contract; making changes afterward is time-consuming.
Regulatory Drivers for 2026
Solar Peak Act: Self-Consumption Given Greater Weight
The Solar Peak Act (effective February 25, 2025) has structurally changed the economics of PV investment. New systems do not receive EEG feed-in tariffs during hours when electricity market prices are negative; the subsidy period is ultimately extended by the number of hours during which no revenue was generated. For commercial systems over 25 kWp, this applies on a quarter-hourly basis. The result: Self-consumption has become significantly more attractive compared to full feed-in, because it is decoupled from the risk of negative prices. Our guide to EEG feed-in tariffs for 2026 lists the current rates.
CBAM: In the regular phase starting in 2026, but with a de minimis threshold
The Carbon Border Adjustment Mechanism entered its regular phase in 2026. A key change—one that many market reports have not yet reflected—is that, under the Omnibus Package, a de minimis threshold of 50 metric tons of CBAM goods per importer per year has been in effect since October 20, 2025. Those who remain below this threshold are exempt from the requirements—according to the European Commission’s calculations, this includes approximately 90 percent of the companies previously affected, while 99 percent of emissions continue to be covered. The threshold does not apply to electricity and hydrogen.
In terms of contracting decisions, this means that CBAM is no longer a direct driver for the typical small-to-medium-sized enterprise. It remains relevant for companies that import iron, steel, aluminum, cement, fertilizer, or hydrogen in quantities exceeding the threshold, as well as an indirect factor through customer requirements in the supply chain.
CSRD: Scope 2 as an auditable metric
The Corporate Sustainability Reporting Directive significantly expands the group of companies subject to reporting requirements; thousands of additional small and medium-sized enterprises are indirectly affected through supplier reporting. The key metric is the Scope 2 reduction—that is, the reduction of indirect emissions from purchased electricity. Self-consumed solar power is the simplest verifiable measure here because the reduction is documented directly at the point of consumption—thus, the contribution to the energy transition becomes a verifiable metric rather than a mere statement of intent.
In addition, the CfD requirement taking effect in 2027 will have a similar effect: New plants that feed all their electricity into the grid will be transitioned to a different revenue model, while on-site models will remain unaffected. For details, see the article on the 2027 CfD requirement.
Contract Clauses and Common Pitfalls
A contracting agreement binds both parties for ten to twenty years. The following eight points can prove costly down the road if they remain unresolved or are worded in a way that favors only one party:
- Price adjustment clause. Fixed price, indexation to the consumer price index or wholesale price, or a tiered escalation clause. A fixed price offers maximum certainty in cost calculations but precludes windfall gains when prices rise.
- Minimum Purchase Obligation / Take-or-Pay. In the event of a relocation of production, a shutdown, or a change in ownership, a minimum purchase obligation can prove costly.
- Risk of yield shortfalls. Who bears the cost of reduced yields due to weather, shading, or defects? Typically, the contractor—the definition of force majeure determines the exceptions.
- Residual Value and Takeover Options. At the end of the term, the following are common: takeover at a defined residual value, extension for five years, or cost-free dismantling.
- Insurance and Liability. The contractor is typically responsible for operator liability insurance, all-risk insurance, and loss-of-earnings insurance; coverage limits and deductibles should be reviewed.
- Insolvency protection. Transfer of ownership as security, registered land charge, third-party subrogation rights. The market insolvencies of 2024 and 2025 show that this is not a theoretical risk.
- The contractor’s creditworthiness. Anyone who commits to a 20-year contract is relying on the provider’s creditworthiness. Affiliation with a corporate group, equity capital, and legal form are not equally reliable indicators.
- Roof Renovation Regulations. Who is responsible for dismantling, temporary storage, and reconstruction when the roof needs to be renovated? Without specific regulations, the risk falls on the owner.
The Provider Landscape in Germany in 2026
| Provider | Minimum size | Focus |
|---|---|---|
| EnBW | 1,000 kWp and up | Industrial Contracting, PPA; Group Creditworthiness |
| Enpal Business Solutions | 100 kWp and up | Complete Solution: Solar Power, Storage, and Wallbox |
| MaxSolar / Energy Partners | 135 kWp and up / 1,500 m² and up | On-site and Off-site PPAs, Energy-as-a-Service |
| Mainova | 600 m² and up / 150,000 kWh/a | Full-Service On-Site PPA, Rhine-Main Region |
| BayWa r.e. | MW range | On-site PPA, VPPA, Leasing |
| ENGIE Germany | 50,000–100,000 kWh/year | On-site PPA |
| LichtBlick, Polarstern, Naturstrom, Vattenfall | depending on the project | Contracting and Direct Delivery |
| Logic Energy | starting at approximately 100 kWp | Complete Solution, Roof Bridging System |
| EWS Schönau | depending on the project | Cooperative PPAs |
| Sources: Provider websites and industry communications. As of July 2026. | ||
The selection process can be boiled down to three questions: Does the project meet the provider’s minimum size requirement? What is the contractor’s creditworthiness, and what safeguards are included in the contract? And what scope of service is actually included—does the provider only supply electricity and outsource maintenance and billing to subcontractors, or is everything provided by a single source?
Suitability Check: When Is Contracting a Good Fit for Your Business?
If at least four of the following six criteria are met, contracting makes structural sense:
- Equity capital is put to more profitable use in the core business. Every euro tied up there would yield a better return.
- Financial ratios are critical for creditworthiness. The equity ratio and debt-to-equity ratio must not be negatively impacted by CAPEX.
- The operation of technical facilities falls outside the scope of our core business. We do not intend to develop our own expertise in energy technology.
- Leasing instead of ownership. The contract is tied to the property; when you move out, the contract can continue with the next tenant.
- Tax depreciation allowances are ineffective. If the tax burden is low, there are tax loss carryforwards, or the entity qualifies as a nonprofit, the benefit of self-investment is negated.
- Rapid CO₂ reduction without project complexity. ESG requirements have a fixed timeframe.
Technical Requirements for a Solar Power System
Feasibility comes before cost-effectiveness. Every contractor checks four points in advance, and these often determine whether a bid is even submitted:
- Unobstructed roof space is a basic requirement for PV systems. Photovoltaic contracting requires unobstructed roof space with full sunlight exposure. Shading from neighboring buildings, trees, or structures on the property itself disproportionately reduces output; ventilation systems, skylights, and maintenance walkways significantly reduce the usable area compared to the gross area.
- Roofs must face south or east-west. A south-facing orientation provides the highest annual yield, while an east-west orientation spreads electricity generation more evenly throughout the day—for businesses with continuous consumption, this is often the better option for efficient self-consumption. North-facing orientations are practically out of the question for commercial systems.
- A well-maintained solar power system typically lasts 20 to 30 years. The structural integrity and remaining lifespan of the roof are therefore crucial: It should be able to support the system for at least the duration of the contract; otherwise, there is a risk of having to incur dismantling and reconstruction costs in the middle of the contract term.
- Every PV system must be registered with the grid operator. In addition, the system must be registered in the Federal Network Agency’s market master data registry. In the case of energy supply contracting, the contractor handles both of these tasks; in the case of system contracting, the responsibility lies with the operator.
Experts typically assess the specific conditions at a given location by conducting a site inspection and preparing a structural analysis report. Our overview of rooftop PV systems covers the technical fundamentals of such installations.
Conversely, self-financing is the better option if special depreciation and declining-balance depreciation can be fully utilized, the investment tax credit under Section 7g of the German Income Tax Act (EStG) applies, there is a long-term commitment to the property, and the goal is to maximize self-generated income. Details on this can be found in “The Investment Tax Credit for Photovoltaics Explained.”
Photovoltaic Contracting with Logic Energy
Legal form of the contracting party. Contracts are entered into with mediplan Helm e.K., a registered business entity with unlimited personal liability on the part of the owner. Whereas competitors operate as limited liability companies (GmbH) with 25,000 euros in share capital, here the owner is personally liable for the fulfillment of the contract with his or her private assets—a tangible indicator of creditworthiness over a 20-year period.
Roof Bridging System. Many industrial building roofs can only bear loads at specific points: loads can be supported exclusively by the columns. Other providers refuse to work with such roofs. Logic Energy installs a trapezoidal profile system at the load-bearing points and bridges the gaps—making the entire roof usable. The guide *Photovoltaics for Industry* explains in detail what this means for industrial and commercial roofs.
Everything from a single source. Site analysis, structural engineering reports, permitting, financing, installation, commissioning, and operations management are all handled by a single point of contact within the Helm Group. One point of contact throughout the entire project lifespan, with no loss of coordination.
Have the location checked
A reliable answer starts with three data points: roof area, annual electricity consumption—ideally as a 15-minute load profile—and the condition of the roof. Logic Energy analyzes this data and provides an initial assessment of cost-effectiveness.
Frequently Asked Questions (FAQ)
What is the difference between a PPA and photovoltaic contracting?
A PPA is a pure electricity supply contract that can be fulfilled on-site or off-site. Contracting also includes construction, operation, maintenance, and insurance, and almost always takes place on-site. An on-site PPA is therefore a type of energy supply contracting.
How much does a solar power contract cost per kilowatt-hour?
In line with industry standards, on-site rates for commercial rooftop solar systems ranging from 200 kWp to 1 MWp are between 8 and 14 ct/kWh net, depending on system size, creditworthiness, and contract term. By comparison, the grid purchase price for small and medium-sized industrial facilities is 16.7 ct/kWh (BDEW, April 2026).
Is a contracting agreement recognized on the balance sheet?
Under the German Commercial Code (HGB), generally not: Genuine energy supply contracting arrangements are recognized as service expenses in the income statement. Under IFRS 16, they must be capitalized as soon as the contract has the characteristics of a lease. The classification depends on the terms of the contract and should be reviewed before signing.
Can I lease a solar power system instead of buying electricity?
Yes, that’s what plant contracting is. You pay a fixed lease fee and become the legal operator of the plant—with full access to the self-generated electricity benefit and electricity tax exemption, but also with reporting obligations and the risk of lower returns.
Will my business benefit from the 2026 Industrial Electricity Price?
Only if it is one of the 91 electricity- and trade-intensive sectors. For other small and medium-sized businesses, the target price of 5 ct/kWh does not apply; in those cases, on-site generation remains the available cost-saving measure.
What are the typical contract terms?
Ten to twenty years, usually 20 years with an option to extend. In the case of large industrial facilities, terms of 25 years are occasionally seen. The term thus largely covers the facility’s economic useful life.
How can I protect myself in the event that the contractor goes bankrupt?
Regarding the transfer of ownership of the facility as security, the registered land charge, and third-party rights of subrogation in the contract. Additionally, the provider’s creditworthiness is important: its legal form, equity base, and affiliation with a corporate group should be reviewed before signing.
What happens at the end of the contract term?
There are typically three options: taking over the facility at a specified residual value, extending the contract by about five years, or having the contractor dismantle the facility at no cost. The applicable option must be specified in the contract.
Conclusion: It's the model that matters, not the label
In 2026, photovoltaic contracting will be the most pragmatic model for small and medium-sized businesses and industry to use solar power without tying up capital. The situation has become more challenging: The new industrial electricity rate provides relief to only 91 energy-intensive sectors; for all others, the full grid purchase rate remains in effect—leaving self-generation as the only remaining lever.
Market dynamics support this logic: While large-scale PPA contracts are exposed to the risk of negative prices, onsite contracting safeguards self-consumption. When it comes to regulatory drivers, a nuanced analysis is warranted—the Solar Peak Act clearly enhances the value of self-consumption, whereas CBAM is no longer a direct driver for most small and medium-sized enterprises since the de minimis threshold of 50 metric tons was introduced.
The choice of model remains crucial. Energy-supply contracting keeps the balance sheet clean, while equipment contracting maximizes tax benefits; self-financing outperforms both if depreciation and the investment tax credit can be fully utilized. Carefully reviewing the clauses before signing is not optional: price adjustments, residual value, and insolvency protection will determine the outcome for the next two decades.
For those ready to take the next step: The “Model Without Personal Investment” explains solar power without requiring personal capital; the “Photovoltaics Guide for Industry” outlines the framework conditions for commercial rooftops; and those considering installing their own system at their business can find the basics under “Your Own PV System for Your Business.”
References
- BMWE: Industrial electricity price to be introduced – EU approval on April 16, 2026; 91 sectors; target price 5 ct/kWh
- BDEW: Electricity Price Analysis – 16.7 ct/kWh for Small and Medium-Sized Industries, as of April 2026
- BDEW: Study on the Development of Electricity Grid Fees (Consentec, Frontier Economics)
- Germany Trade & Invest: CBAM Simplifications Take Effect – De Minimis Threshold of 50 Metric Tons
- Fraunhofer ISE: Current Facts About Photovoltaics in Germany
- Fraunhofer ISE: Study on the Levelized Cost of Electricity from Renewable Energy Sources
- dena: PPA Market Analysis 2025
- SolarPower Europe: Auctions and Corporate PPAs, European Market Review 2025
- pv magazine: Commercial rooftops offer 37 gigawatts of photovoltaic potential (analysis by Garbe Industrial Real Estate)
- Section 9 of the Electricity Tax Act: Tax Exemptions, Tax Reductions
- Section 7g of the Income Tax Act (EStG): Investment Deductions and Special Depreciation Allowances
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