Providers of tenant electricity are energy supply companies under the Energy Industry Act. They are therefore subject to the regulations defined for energy supply companies in the EnWG.

In the context of tenant electricity models, however, supply generally only takes place within a so-called customer facility in accordance with Section 3 No. 24a EnWG. This is advantageous because as long as a supplier only supplies end consumers within a customer facility, various simplifications apply.

The legal requirements for the contractual structure of electricity supply to household customers – for example with regard to liability, termination or price adjustments and invoicing – can be found in Sections 40 to 42 EnWG. In addition, the provisions of general civil law and in particular the requirements for general terms and conditions (GTC) must be observed when drafting electricity supply contracts.

Funding under the Renewable Energy Sources Act (EEG) is only available for the portion of electricity in tenant electricity models that is not consumed on-site but rather fed into the general supply grid (so-called surplus feed-in), with the exception of certain existing installations.

According to the EEG, system operators must adhere to the following regulations regarding funding:

• Notification obligation to the Federal Network Agency (BNetzA) as part of the plant register (§ 6 EEG 2017)
• Provision of technical equipment (§ 9 EEG 2017)
• Notification obligations to the grid operator (§§ 70, 71 EEG 2017)

Furthermore, the provider of tenant electricity becomes an electricity supply company under § 3 No. 20 EEG 2017 due to the electricity supply to end consumers. The following requirements apply to the supply of electricity within the framework of tenant electricity models:

• Notification and publication obligations to the transmission system operator (§ 74 EEG 2017) and the Federal Network Agency (§ 76 EEG 2017)
• Regulations on electricity labeling (§ 78 EEG 2017)
• Obligation to pay the full EEG surcharge (§ 60 EEG 2017)

Auctions: Since the EEG 2017, all PV systems with an installed capacity over 750 kW are required to participate in auctions. Funding for surplus electricity is only available if the respective system has successfully bid for a funding entitlement in an auction. Smaller installations below 750 kW installed capacity are not subject to the obligation to participate in auctions.

The electricity tax law also imposes various requirements on tenant electricity projects. The provider of tenant electricity is classified as a supplier within the meaning of § 2 No. 1 StromStG (Electricity Tax Act).

According to § 4 (1) StromStG, suppliers generally require a written permit under electricity tax law, which must be applied for at the locally competent main customs office.

Furthermore, suppliers are subject to various documentation and reporting obligations under the Electricity Tax Implementation Ordinance.

The MsbG (Metering Point Operation Act) provides for a gradually escalating obligation to install smart metering systems from 2017 onwards, “as far as technically possible and economically reasonable,” which will have a significant impact on tenant electricity models. Initially, the obligation to install smart meters applies to final consumers with an annual consumption exceeding 10,000 kWh (from 2017) or 6,000 kWh (from 2020), as well as from 2017 to operators of renewable energy systems with a capacity exceeding 7 kW (including existing systems). Statutorily staggered price caps apply in this regard.

Additionally, consumers with lower annual consumption and smaller renewable energy systems (1 to 7 kW installed capacity) may optionally have smart meters installed by the responsible metering point operator from 2020 (consumers) or 2018 (renewable energy systems) at their own cost. Furthermore, from January 1, 2021, the connection holder can also decide, with effect for all connection users, to equip the premises with smart metering systems.

Furthermore, Mieterstrom projects may be subject to obligations under Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency (REMIT). The REMIT regulation includes extensive reporting, registration, and disclosure requirements for various market participants.

This could affect the Mieterstrom provider if they are considered an energy trader under the regulation— for instance, if, in addition to their own electricity generation, they also procure residual electricity from the general grid and supply it to the tenants.