Solar power for the neighbourhood

Energy sharing as a new building block for local energy supply

Maurice Forgeng, EPOCH TIMES

Anyone who operates a photovoltaic system knows the problem: precisely when the sun is strongest, more electricity is often produced than the household needs right then. Until now, this surplus was usually fed into the public grid – at a comparatively low tariff. With the new energy sharing model, an additional option is emerging: solar power can be passed on locally – for example to neighbours, friends, small businesses or institutions in the same distribution grid area.

Since 1 June 2026, so-called energy communities or energy sharing communities have been possible in Germany. The basis is an amendment to the Energy Industry Act that transposed European requirements into national law. For operators of solar systems, storage systems or other renewable energy plants, this opens up a new way of not just feeding surplus energy anonymously into the grid, but making it usable regionally.

Using electricity where it is generated

The basic idea is simple: electricity that is generated locally should, as far as possible, also be consumed locally. This can make economic sense and at the same time relieve the power grids. High solar surpluses, especially around midday, are increasingly causing problems in the grid. In some cases, plants have to be curtailed or electricity surpluses shifted to other regions or abroad.

Energy sharing comes in here. If consumers in the vicinity take some of this surplus electricity, regional self-consumption increases. At the same time, there is a financial incentive to switch on larger consumers – such as washing machines, heat pumps, chargers or commercial equipment – when a lot of solar power is available.

This idea is particularly interesting because it marks a step away from completely centralised supply structures. Energy is no longer delivered exclusively by large suppliers to passive consumers. Instead, citizens, municipalities, small businesses and local communities can themselves become more active participants in the energy supply.

What is needed

The new model does not work without preconditions, however. A contractual agreement is needed between the plant operator and the electricity customer. In addition, all participating households or businesses must be equipped with a smart meter. Only then can electricity flows be recorded precisely in time and billed correctly.

This is currently one of the biggest hurdles. The spread of smart metering systems is still low, and installation can take several months. In addition, billing is based on quarter-hour values. A simple manual settlement is not sufficient. Energy suppliers and grid operators also still need reliable technical and legal procedures for energy sharing to work smoothly in practice.

This means: the idea is promising, but the practical start is likely to be bumpy in many places.

Economic benefits for both sides

For operators of a photovoltaic system, energy sharing can be economically more attractive than simply feeding into the grid. The feed-in tariff for smaller systems is well below the electricity prices that households normally pay for grid electricity. If surplus electricity is passed on directly to people in the local area, a price can be agreed that benefits both sides.

The plant operator may receive more than with conventional grid feed-in. The customer may be able to buy electricity more cheaply than on their usual tariff. However, the shared electricity will not be entirely free of charge, as grid charges, taxes and levies may still apply when the public grid is used.

Energy sharing is therefore not a replacement for all previous models, but a supplement. Self-consumption usually remains the most economical. A battery storage system can increase self-consumption further. After that, energy sharing can be another sensible option before remaining surplus is fed into the public grid.

Not a complete replacement for the electricity contract

Important: energy sharing does not guarantee a complete electricity supply. Solar power is only available when there is actually a surplus. At night, in winter or in bad weather, the amount can fall sharply. Technical failures are also possible.

Participating households therefore still need a normal electricity supply contract. The existing supplier delivers the quantities that do not come from the shared solar system. Energy sharing is therefore not a complete exit from the electricity market, but an additional building block for more regional supply.

But that is precisely its strength: not everything has to be replaced centrally at once. Local structures can grow step by step.

Significance for independence and freedom

Energy sharing shows that energy supply does not have to be thought of exclusively in terms of large corporations, anonymous markets and central grids. When citizens generate, store, share and jointly use their own electricity, a new form of local value creation emerges.

This strengthens personal responsibility, makes energy flows more visible and creates concrete cooperation in the immediate neighbourhood. Neighbours become not just consumers but possible partners in a regional supply community.

Energy sharing alone is not enough for real energy independence. That requires storage, decentralised control, robust local grids, clear framework conditions and less bureaucracy. But as an additional building block, it points in an important direction: away from pure dependency, towards more power to shape things locally.

36 countries – 24 languages

The technology section of Epoch Times regularly reports on current developments in energy, digitalisation and innovation – with a critical eye on opportunities, risks and technological trends in everyday life. Maurice Forgeng is one of the active editors in this section.

Posts by Maurice Forgeng

Das Deutsche Zensurnetzwerk

Mini-Windrad fürs Eigenheim

Windkraft unter der Lupe

Klimafinanzierung: 11,8 Mrd Rekordsumme aus Deutschland

The editorial team of more than 30 people at the German edition of EPOCH TIMES works out of conviction and with full commitment to pass news on to readers truthfully and impartially – without a ready-made opinion between the lines and without paternalism. EPOCH TIMES provides the facts – readers decide. Everyone is thus given the opportunity to form their own judgement.

Photo: Ladanifer/iStock, illustration: Juklin Lam/Epoch Times

“In the daily flood of information and crises that come thick and fast, the world needs truthfulness more than ever. We are aware of our great responsibility as a media company and give our readers an unreserved promise: we always report calmly, factually, neutrally and without party-political colouring. That is our way of serving every reader’s individual sovereignty of decision.”

Alexander Zwieschowski

Managing director, editor-in-chief

🇩🇪 Conclusion of the GAIA editorial team More responsibility = more freedom

Energy sharing can give operators of solar systems in Germany new income, give electricity customers cheaper local electricity and relieve regional grids. However, practical implementation depends heavily on smart meters, billing systems and functioning local framework conditions.

Despite these hurdles, the model is a relevant step. It shows how energy supply can be organised in a more decentralised, community-based and citizen-oriented way. The focus is less on the technology itself and more on the bigger question: how can we as people take more responsibility again for the foundations of our lives?

🇦🇹 Note for readers in Austria: energy communities are already practice

For readers in Austria it is important to know: what is now being discussed more intensively in Germany under the term energy sharing has already been anchored in Austrian law for several years in the form of so-called “energy communities”. Citizens, businesses, municipalities or associations can jointly use, pass on and bill electricity they generate together.

Renewable energy communities (EEG) are particularly relevant. They are organised locally or regionally. A local EEG typically covers the area of the same transformer station, a regional EEG the area of the same substation. Reduced grid charges and tax advantages, such as the elimination of certain levies, can apply to the electricity used jointly.

In addition, there are also BEGs in Austria, citizens’ energy communities. These are much wider in geographical scope and can in principle be organised throughout Austria. In return, they generally do not offer comparable grid cost savings to local or regional EEGs.

The central difference from the German energy sharing model therefore lies in the practical design: with EEGs, BEGs and joint generation plants, Austria already has several established models for joint electricity use. Germany, by contrast, is only gradually starting out in this direction. For GAIA, the Austrian approach is therefore particularly interesting, because it shows that decentralised energy supply is not only possible in theory but can already be implemented organisationally and legally.