{"id":32362,"date":"2026-07-29T11:05:44","date_gmt":"2026-07-29T09:05:44","guid":{"rendered":"https:\/\/cubeconcepts.de\/?p=32362"},"modified":"2026-09-24T14:11:36","modified_gmt":"2026-09-24T12:11:36","slug":"energy-sharing-in-germany-42c-enwg","status":"publish","type":"post","link":"https:\/\/cubeconcepts.de\/en\/energy-sharing-in-deutschland-42c-enwg\/","title":{"rendered":"Energy Sharing in Germany: Status of Implementation under Section 42c EnWG (2026)"},"content":{"rendered":"<p class=\"wp-block-paragraph\">With the anchoring of Section 42c in the Energy Industry Act (EnWG) at the end of 2025, Germany has established the legal framework for <strong>Energy Sharing<\/strong> created. Since June 1, 2026, implementation has been legally binding for grid operators \u2013 in practice, however, the model is still in its infancy and is struggling with technical and economic hurdles. Important for context: Although Section 42c of the Energy Industry Act (EnWG) is intentionally designed so that both small rooftop systems owned by private individuals and large wind or solar parks can participate, economic and tax thresholds still exist in practice. For larger PV systems in industrial and commercial sectors, other models usually make more sense. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key facts at a glance:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Legal basis: Section 42c EnWG, in force since the end of 2025<\/li>\n\n\n\n<li>Obligation for network operators to implement: since June 1, 2026<\/li>\n\n\n\n<li>Target audience: private households, associations, SMEs, and municipalities; industry and primarily commercially operated plants initially excluded<\/li>\n\n\n\n<li>Scope: currently only within the same distribution grid or balancing area<\/li>\n\n\n\n<li>Spatial expansion to adjacent network areas: from June 2028<\/li>\n\n\n\n<li>Central hurdle: full grid fees continue to apply \u2013 unlike tenant electricity (Mieterstrom) or collective building supply (GGV)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>As a general rule: <\/strong>Energy Sharing (\u00a7 42c EnWG) is intended for the distribution of solar power from smaller PV systems to households, associations, SMEs, and municipalities across property boundaries. If the electricity <strong>within the same building<\/strong> <strong>or areas<\/strong> to be shared (e.g., landlord to tenant), is the <strong>Communal building services <\/strong>or<strong> the tenant electricity model <\/strong>most economical, because no grid fees are incurred.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What does Section 42c of the Energy Industry Act (EnWG) regulate? The legal framework<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Energy Sharing allows operators of renewable energy plants (PV, wind) to supply their electricity directly via the public power grid to neighbors, households, clubs, SMEs, or municipalities within the same distribution grid area\u2014without having to act as a full-service energy supplier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consumers sign a service agreement for this with the producer for the regional green electricity share and keep their regular electricity provider for their remaining residual demand. The model is therefore considered a <strong>Partial supply<\/strong> designed, not as a complete supplier change.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spatially, the application is limited for the time being: Sharing is only possible within the same distribution grid or balancing area. It is not until June 2028 that it will be possible to include adjacent grid areas \u2013 a time horizon that should be taken into account during project planning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Admission requirement: non-commercial main purpose<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A central condition for participation is that the operation of the renewable energy system does not primarily serve a commercial or independent business activity for either the system operator or the final consumer. The scope of application is therefore tailored from the outset to private households, associations, SMEs, and public institutions\u2014industrial enterprises are essentially excluded from the model.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Within this framework, additional size-dependent reliefs regarding supplier obligations apply: For very small installations <strong>up to 30 kW<\/strong> as well as shared small systems in the apartment building <strong>up to 100 kW<\/strong> simplified regulations apply, for example, to billing, electricity labeling, and contract design. For all larger systems, the regular ones apply <strong>Supplier obligations<\/strong> in full accordance with \u00a7\u00a7 5, 40 to 42 of the Energy Industry Act (EnWG).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rollout in Practice: Three Hurdles Slow Down the Market<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Although the statutory deadline of June 1, 2026 has passed, a nationwide market for energy sharing is only slowly emerging. Three factors are largely responsible for this:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Smart meter rollout mandate<\/strong>All participants\u2014producers and consumers alike\u2014require an intelligent metering system (iMSys) with 15-minute interval measurement. The sluggish smart meter rollout is noticeably slowing down many projects.<\/li>\n\n\n\n<li><strong>Grid operator processes<\/strong>Many distribution system operators (DSOs) are only gradually making the communication and billing data flows suitable for mass business available for the balancing system.<\/li>\n\n\n\n<li><strong>Economic Efficiency &amp; Grid Fees<\/strong>Unlike in some neighboring EU countries such as Austria, there is currently no reduction in grid fees for locally shared electricity in Germany. Grid fees and statutory surcharges apply in full.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Grid fees in energy sharing: locally shared electricity is not automatically cheaper<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Regarding grid fees, there is a clear rule for energy sharing via the distribution system operator: <strong>There is currently no reduction.<\/strong> Although electricity physically often travels only short distances\u2014for example, from a photovoltaic system to a neighbor on the same street\u2014the full regular grid fees, surcharges, and levies are incurred for grid usage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Full grid fee obligation despite short distances<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As soon as the electricity leaves a customer's installation\u2014meaning their own building\u2014and uses the distribution system operator's public grid, the regular grid usage logic applies. The distribution system operator charges the full, distance-independent grid fees for the transmission process. The geographical proximity between the generator and the consumer plays no role in this.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Economic disadvantage compared to models exempt from grid fees<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is one of the main reasons why energy sharing is often financially less attractive than established models that operate without the public grid. At <strong><a href=\"https:\/\/cubeconcepts.de\/en\/the-tenant-electricity-model\/\">Tenant electricity model<\/a><\/strong> for example, the PV electricity is supplied directly to tenants within a customer installation - grid fees, levies and electricity tax are thus completely eliminated, and operators also benefit from the EEG tenant electricity surcharge. Also since the <a href=\"https:\/\/cubeconcepts.de\/en\/solar-package-at-critical-points-continues-to-be-blocked\/\" data-type=\"post\" data-id=\"24388\">Solar package I<\/a> possible in 2024 <strong><a href=\"https:\/\/cubeconcepts.de\/en\/the-communal-building-supply-ggb\/\">Communal building supply<\/a><\/strong> works without grid fees: It is designed as a leaner variant of the tenant electricity model, where the PV system operator does not have to act as a full-service supplier and tenants can freely choose their residual electricity supplier.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The decisive difference to energy sharing: Both tenant electricity and GGV take place <strong>within a customer system<\/strong> instead \u2013 that is, within a building or a connected area \u2013 and therefore never use the public distribution grid. Energy sharing pursuant to Section 42c of the German Energy Industry Act (EnWG), on the other hand, is explicitly intended for the supply <em>cross-building<\/em> intended for participants in the same grid area and therefore necessarily has to take place via the public grid \u2013 with the corresponding grid fees.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Model<\/strong><\/td><td><strong>Network usage<\/strong><\/td><td><strong>Grid charges<\/strong><\/td><\/tr><tr><td>Tenant electricity (\u00a7 21 EEG)<\/td><td>No public network (customer installation in the building)<\/td><td>Canceled completely<\/td><\/tr><tr><td>Collective building electricity supply (\u00a7 42b EnWG)<\/td><td>No public network (same area \/ building)<\/td><td>Canceled completely<\/td><\/tr><tr><td>Energy Sharing (\u00a7 42c EnWG)<\/td><td>Use of the public distribution grid<\/td><td>Due in full<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Are there any exceptions or discounts?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A targeted relief exists in the <strong>Electricity tax<\/strong>For generating plants in the immediate spatial vicinity \u2013 <strong>within a radius of 4.5 km<\/strong> \u2013 under certain conditions, relief of around 2 ct\/kWh may apply. However, a regional grid fee discount system, such as the one used in Austria or Italy for energy communities that do not burden the higher-level transmission grid, has not yet been anchored in the EnWG.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who benefits from the current state?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the economic constraints, there are actors within the eligible target group \u2013 private households, associations, SMEs, and municipalities \u2013 for whom energy sharing is already worthwhile:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Citizen Energy Cooperatives (CECs):<\/strong> They often already have the necessary organizational structure and can generate higher revenues with solar parks or wind turbines than through the pure feed-in tariff.<\/li>\n\n\n\n<li><strong>Prosumers with larger PV systems<\/strong> (e.g., from 10\u201330 kWp): You can sell your surplus electricity to neighbors or the immediate surrounding area instead of feeding it into the grid for low compensation.<\/li>\n\n\n\n<li><strong>Tenants and households without their own roof:<\/strong> You now have the opportunity for the first time to directly participate in the local energy transition and purchase affordable green electricity from the region\u2014even if investing in your own PV system is out of the question for you.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Large-scale plants &amp; industry: Why Section 42c does not apply here<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For operators of larger PV and battery storage systems, energy sharing pursuant to Section 42c of the German Energy Industry Act (EnWG) in its current design is not a relevant model: the non-commercial primary purpose excludes industrial businesses and primarily commercially operated systems from the scope of application. Companies that nevertheless want to supply electricity directly and without paying full grid fees to one or more off-takers must resort to other, established mechanisms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">direct line (\u00a7 3 No. 12 EnWG)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A direct line connects a single generation site with a single customer \u2013 or a generator or energy supply company with its own facility, a subsidiary, or customers for the purpose of direct supply. Since such a line does not use the public distribution grid, it is not subject to regular grid regulation and is exempt from grid fees. In addition, the definition of customer installations was expanded to include direct lines with a maximum length of 5,000 meters and a nominal voltage of 10 to 40 kilovolts, provided that renewable energy systems are connected via them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legal uncertainty caused by the ECJ ruling on customer installations<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Caution is advised here: In November 2024, the European Court of Justice classified the German exemption rule for the \u201cgeneral customer installation\u201d as contrary to EU law. For existing and planned supply concepts based on customer installations or direct lines, this currently creates <strong>Legal uncertainty<\/strong> \u2013 Legislative clarification is still pending. Anyone planning a project on this basis should closely monitor the current status of the amendment while seeking legal advice. For more on this, see our article: <a href=\"https:\/\/cubeconcepts.de\/en\/customer-installations-tenant-electricity-under-pressure-following-ecj-and-bgh-ruling\/\" data-type=\"post\" data-id=\"23162\">Customer facilities &amp; tenant electricity under pressure following ECJ and BGH rulings<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Balance group management in bilateral delivery models<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Apart from Section 42c of the Energy Industry Act (EnWG), there are already models in place today under which plant operators and large-scale consumers enter into bilateral supply contracts\u2014such as an Onsite Power Purchase Agreement (<a href=\"https:\/\/cubeconcepts.de\/en\/ppa-power-purchase-agreement\/\" data-type=\"post\" data-id=\"10902\">PPA<\/a>). In this case, a specialized service provider or direct marketer typically handles the balancing group management: It records the delivered electricity volumes in its own balancing group and manages the energy-related processes between generation, delivery, and the procurement of residual electricity. For large-scale plants, this combination of direct supply or customer-owned facilities and professional balancing group management is the practical approach to marketing electricity directly\u2014not Energy Sharing, which is tailored to private households and SMEs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions About Energy Sharing<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Do I have to pay grid fees for electricity I purchase through Energy Sharing?<\/summary>\n<p class=\"wp-block-paragraph\">Yes. As soon as the electricity enters the public distribution grid, the full grid fees\u2014which are independent of distance\u2014apply; German law does not currently provide for any reduction.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Since when have distribution network operators (DNOs) been required to enable energy sharing in Germany?<\/summary>\n<p class=\"wp-block-paragraph\">The legal basis, Section 42c of the Energy Industry Act (EnWG), was enacted at the end of 2025. Since June 1, 2026, grid operators have been legally required to implement it.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>What is the difference between energy sharing and tenant-generated electricity?<\/summary>\n<p class=\"wp-block-paragraph\">Tenant-Generated Electricity and Community Building Supply take place within a single customer\u2019s facility and are therefore exempt from grid fees. Energy Sharing is intended for participants across multiple buildings within the same grid area and requires the use of the public grid\u2014including full grid fees.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>What technical requirements must participants meet?<\/summary>\n<p class=\"wp-block-paragraph\">Both producers and consumers need a smart metering system (iMSys) with 15-minute interval metering.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>When will Energy Sharing be available across grid area boundaries?<\/summary>\n<p class=\"wp-block-paragraph\">The expansion to adjacent distribution network areas is scheduled to begin in June 2028.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Are there any tax benefits associated with energy sharing?<\/summary>\n<p class=\"wp-block-paragraph\">Within a 4.5-km radius between the power generation facility and the point of consumption, an electricity tax exemption of approximately 2 ct\/kWh may apply under certain conditions.<\/p>\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary>Can companies or industry also use energy sharing?<\/summary>\n<p class=\"wp-block-paragraph\">No, at least not as a primary purpose. Section 42c of the Energy Industry Act (EnWG) requires a non-commercial main purpose and is aimed at private households, associations, SMEs, and municipalities. For industrial companies and larger commercial projects, models such as direct lines or bilateral PPA structures with their own balancing group management are relevant instead.<\/p>\n<\/details>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: A model with a future, but an unresolved question of economic viability<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For the first time, Energy Sharing legally opens the door to cross-building, direct marketing of local green electricity\u2014an important building block of the decentralized energy transition. However, as long as full grid fee obligations remain in place, the model will be less economically attractive on a broad scale than established alternatives such as tenant electricity (Mieterstrom) or joint-generation consumption (GGV), both of which operate within a single customer installation. For operators of larger PV and battery storage systems, it remains relevant which marketing model actually enables the highest value creation in the respective application case\u2014full supply, partial supply, or energy sharing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>Grid operators are supposed to enable it starting in June 2026 \u2013 yet the major breakthrough is still a long time coming. Our overview shows what hurdles exist, why full grid fees hamper profitability, and for whom the model can still be worthwhile.<\/p>","protected":false},"author":395,"featured_media":32365,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,60],"tags":[],"class_list":["post-32362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-news","category-regulatorik-esg"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Energy Sharing in Deutschland nach \u00a7 42c EnWG<\/title>\n<meta name=\"description\" content=\"Seit 1. Juni 2026 m\u00fcssen Netzbetreiber Energy Sharing nach \u00a7 42c EnWG anbieten. 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