New opportunities for financing solar panels on commercial buildings

As demand for sustainable energy continues to grow, legal and financial frameworks are evolving to encourage wider adoption. A legislative amendment that came into effect on 1 July 2025 introduces a significant change to the way in which solar panel installations on commercial buildings can be financed. By allowing solar panels to be treated as separate from the building itself, the new rules remove long-standing legal barriers that previously restricted financing to traditional mortgage structures.

Previous legal barriers

Prior to this amendment, financing solar panel installations presented significant challenges due to the existing property laws. Under Section 38 of the Registration Act, solar panels installed on a building were classified as part of the immovable property. Consequently, they were subject to the same liens as the building itself. This prevented lenders and leasing companies from securing separate rights over the solar panels, which effectively restricted financing options to traditional mortgage loans.

The new legal framework: Section 15 of the Renewable Energy Act

The introduction of Section 15 in the Act on the Promotion of Renewable Energy creates a specific exception to Section 38 of the Registration Act. This provision allows leasing companies and sellers with reservation of ownership to retain separate rights over solar panels installed on commercial buildings.

Consequently, solar panels are no longer automatically subject to the property’s existing liens. This makes it possible to arrange more flexible financing, for example through leasing, where the panels are treated as separate assets.

Eligibility conditions

To benefit from the legislative amendment, certain conditions must be met:

1. The solar panels must be installed on a commercial building, such as an office, warehouse or institutional building, and not on a residential property;
2. The solar panels must be connected to the collective electricity grid to ensure they are not the sole source of electricity for the property;
3. The solar panels must be removable without causing significant damage to the building; and
4. A declaration of separate ownership must be registered before the installation begins, with consent from existing mortgage and lien holders. This consent may be withheld if the installation poses significant credit risks or violates financial regulations.

Potential for broader application

While the current legislative amendments apply exclusively to commercial properties, discussions are ongoing about expanding the framework to include private residences. Such a development would significantly widen the market for solar panel installations and encourage homeowners to adopt sustainable energy.

At Gorrissen Federspiel, we are closely monitoring these developments and are ready to assist with any enquiries or need for guidance.