Single solar module: an essential component of a photovoltaic system?

The Deggendorf Regional Court has ruled in a significant case concerning the ownership rights to solar modules of an insolvent company. The focus was on the question of whether individual PV modules are considered independent components of a photovoltaic system. The plaintiff convincingly argued that the modules it acquired do not fall into the insolvency estate because they are considered independent components of the system. 

This ruling offers investors greater legal certainty in photovoltaic projects and provides important guidance on the use of solar modules.

Module quality and legal assessment of photovoltaic systems – what is crucial?

The quality of PV modules plays a key role in the efficiency and long-term yield of a photovoltaic system. In the wake of the energy transition, solar energy is becoming increasingly important, as photovoltaic systems make a significant contribution to sustainable energy generation by converting sunlight into electricity. High-quality solar modules influence not only the power yield but also the system's economic viability, particularly with regard to power classes and feed-in tariffs.

From a legal perspective, the crucial question is whether individual solar modules are considered an essential component of the entire photovoltaic system. 

A recent court ruling provides clarity on this issue and analyzes in detail the legal implications of assessing module quality. Investors and operators should rely on high-quality PV modules to avoid legal uncertainties and financial risks.

Ownership issue regarding solar modules in a photovoltaic system – Court strengthens buyer rights

In a groundbreaking ruling, the Deggendorf Regional Court ruled that individual solar modules of a photovoltaic system do not constitute essential components of the overall system and are therefore eligible for special rights. The dispute concerned 60 solar modules of a ground-mounted PV system that were purchased by a buyer for €56,227.50 from the subsequently insolvent company C.

Clear identification of solar modules proven

The decisive factor for the court was the unambiguous identifiability of the modules. A detailed layout plan demonstrated the allocation of the solar modules to strings 190, 208, and 209, making the modules individually identifiable. 

The insolvency administrator initially disputed the buyer's ownership, but was unable to refute this clear documentation.

Legal assessment: Modules are interchangeable

The court found that individual solar modules can be removed or replaced without affecting the overall functionality of the PV system. 

Even after replacing a defective module, the system remains economically viable. 

The insolvency administrator's objection that the modules should be regarded as an inseparable unit under the Renewable Energy Sources Act (EEG) was rejected. 

The EEG regulates exclusively the feed-in tariff, but not property rights.

Contractual basis confirmed – ownership transferred to buyer

The contract documents clearly demonstrated that the buyer not only became a co-entrepreneur of the PV system, but also the legal owner of the purchased solar modules. 

After full payment of the purchase price, ownership passed to the buyer in accordance with the contract. 

Since the facility was only temporarily connected to the property, the provisions of property law for movable property were applied. (LG Deggendorf – Ref. No.: 31 O 274/18 – Final judgment of January 18, 2019)

Buying a photovoltaic system: Legal certainty when purchasing individual solar modules

The recent court ruling strengthens the rights of buyers and investors: Individual solar modules or components of a photovoltaic system can be legally purchased without being considered an integral part of the overall system. This means maximum flexibility for you as a buyer – defective modules can be easily replaced, and even the sale of individual system components is possible without fear of legal risks.
Should the operator of the PV system become insolvent, your ownership rights to the purchased solar modules remain intact. 

Particularly important: The legal recognition of technical interchangeability allows you to replace defective modules at any time without jeopardizing your claims.

Benefit from our many years of experience as photovoltaic law attorneys and let us work together to develop the best possible legal protection for your PV project. Request a non-binding initial assessment now and protect your investment.

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