Together with the Ministry of Climate, we have been working to eliminate a significant roadblock: compared to general building renovations, the current legislation restricts renewable energy service providers from partnering with housing associations to install rooftop solar parks and offer more affordable energy to apartment owners.
What has changed?
Until now, there was no legal clarity in terms of how to categorise the installation of solar panels on an apartment building when done in partnership with an outside partner or service provider. Thus, it was unclear what kind of approval the housing association required from the apartment owners. In practice, this legal ambiguity made it nearly impossible for third-party service providers to establish solar parks on residential buildings.
The Ministry of Climate has just published a legal analysis that outlines proposals for legislative changes to make this business model a reality.
The outcome:
- The 51% rule: The analysis defines energy-efficiency renovations (including the installation of solar panels) as “upgrades” (ajakohastamine). This means housing associations can now move forward with installing rooftop solar panels with a 51% qualified majority vote instead of requiring unanimous approval.
- Next steps: Based on the results of the legal analysis, amendments to the Housing Associations Act are being proposed.
This model allows energy companies to install solar parks at no upfront cost to the residents, who then buy cheaper, locally-produced renewable energy directly from their own roof via a Power Purchase Agreement (PPA). In addition to unlocking this new market vertical, this approach improves the overall energy efficiency of the housing sector.