Energy Sharing Becomes Legal in Germany Amidst Implementation Challenges

Since June 1, 2026, Energy Sharing—the communal use of electricity generated from renewable sources—has become legally possible in Germany with the introduction of § 42c EnWG. However, despite this legal framework, Germany is currently lagging behind neighboring countries such as Austria, Italy, and France in terms of practical implementation.

Austria has emerged as a leader in Energy Sharing, with its Renewable Expansion Act (EAG) facilitating the establishment of thousands of energy communities by the end of 2025. These communities benefit from reduced network fees and simpler market organization, enabling broader participation. Similarly, Italy promotes 'Comunità Energetiche Rinnovabili' (CER) through various financial incentives, encouraging dynamic growth in Energy Sharing. France has also allowed collective self-consumption for years, enabling neighborhoods and businesses to efficiently share electricity.

Germany's slower progress is attributed to several hurdles: the late adoption of EU directives, the slow rollout of smart meters required under the new regulations, a lack of net fee privileges for shared electricity, and a complicated regulatory environment that deters smaller energy communities. The need for smart meters is critical, as the new rules mandate their use to facilitate Energy Sharing, but widespread installation has not yet been achieved.

Though the groundwork is laid, experts suggest that Germany will need further regulatory simplifications and advancements in smart meter technologies for Energy Sharing to become economically viable and widely adopted. The complexity and regulatory challenges mean that practical implementation may take significant time before Germany can match the experiences of its European neighbors.

In summary, Germany has taken a legal step forward by enabling Energy Sharing, but substantial efforts remain to overcome infrastructural and regulatory barriers to fully realize the benefits of communal renewable energy use.