Hungary: Electricity bills may fall as solar panels could be installed on balconies and roofs of apartment blocks

Residents of prefabricated housing blocks could reduce their electricity bills by installing personal solar panels, while housing cooperatives might lower shared maintenance costs through power generated on their rooftops. Two new legislative proposals aim to streamline the installation of photovoltaic systems, enabling revenue from electricity production to directly offset residents' expenses.

Eva Szolar

Residents of block housing may gain greater access to self-generated electricity after two legislative proposals were submitted to the Senate on November 4.

The drafts, developed at the initiative of the Association of Romanian Energy Producers and Energy Communities (APCE), could impact more than 6.5 million residents of block housing, many of whom currently lack adequate opportunities to install their own solar systems. The first proposal would introduce balcony solar panels as a distinct category within the legal framework, permitting the installation of systems equipped with inverters featuring a continuous output power of up to 800 VA and comprising one to four panels. These systems could optionally be connected to battery storage units.

The electricity generated could be consumed directly within the dwelling, thereby reducing the volume of power purchased from the grid.

According to estimates by the APCE, a properly oriented system equipped with a battery could reduce electricity bills by up to 40 percent, though actual savings would depend on the number of sunny hours, household consumption levels, and the availability of energy storage. Homeowners would need to finance the investment from their own resources, as the draft does not provide for any specific state subsidies.

When is neighbor consent required?

Simplifying the permitting process would be a key step in easing the rollout of balcony solar installations, as it would eliminate the need for owners to obtain individual technical connection permits, commission separate grid studies, or pay connection fees.

Under the proposed framework, owners would only need to notify the electricity distributor in advance, following a procedure to be defined later, and inform the local municipality. The system would not, however, be permitted to feed surplus energy back into the public grid.

Whether neighboring residents’ consent is required would depend on where the panels are installed. If the panels are placed on the interior side of the balcony and do not affect shared building elements, approval from the housing community for facade use would not be necessary. However, if the panels are mounted on the exterior of the railing or on the facade,

safety regulations stipulate that such equipment may only be installed on metal railings or reinforced concrete parapets, with additional securing measures.

Solar panels could also help lower common maintenance costs.

The electricity generated could power elevators, stairwell lighting, pumps and other shared building facilities. By covering part of the common energy consumption, this approach would help reduce overall maintenance costs.

Cooperative housing associations would also become prosumers, able to feed surplus electricity back into the grid and earn revenue from it. Up to 85 percent of that income could be applied to lower residents’ monthly common charges, with the remainder directed to a repair and maintenance reserve.

For example, if a cooperative earned 1,000 lei from selling electricity and chose to apply the maximum allowable rate, it could credit 850 lei to owners and set aside 150 lei for refurbishments. The savings would not be distributed equally across units; instead, they would be calculated based on each owner’s share of the common property. Any amount exceeding the monthly obligation would be carried over to the following month.

A two-thirds subsidy would be required for rooftop solar panels

Installing solar panels on shared roof areas would require the approval of two-thirds of all co-owners.

The owners’ association would first need to decide on the financing of the investment, the costs of installation and maintenance, and how the generated energy and any potential revenue would be utilized.

The draft legislation would also streamline the permitting process. Except for historic monuments and protected areas, a building permit would no longer be required; it would suffice to notify the local municipality and comply with technical and safety standards.

Two legislative proposals developed at the initiative of the APCE were submitted to the Senate on November 4. The bills are currently at the initial stage of the parliamentary process, and the new rules will only become applicable after their adoption and entry into force.

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