Liability for defects in photovoltaic systems:
Rights to remedy defects and replacement
Liability for defects in photovoltaic systems: Your rights to remedy defects and replacement
If defects occur after purchasing a photovoltaic system, many operators ask themselves: Am I entitled to have the defect rectified or the defective component replaced?
These rights exist within certain time limits, but it is often unclear whether a warranty or guarantee applies, as the two terms are often confused.
In the following article, our energy law attorneys will explain everything you need to know about guarantees and warranties, as well as the opportunities and risks involved in the purchase contract for your PV system.
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3What rights do I have if there are defects in my photovoltaic system?
If a delivered photovoltaic system has defects, the buyer is entitled to various rights, which may vary depending on the type of contract – purchase contract or work contract.
Subsequent delivery and repairIn a purchase contract, if a defect is discovered at the time of delivery, the buyer has the right to choose between remedying the defect (repair) and replacing the goods. In a contract for work and services, however, the contractor decides whether to repair the defect or provide a new service.
Withdrawal or reduction: In the event of significant defects, you have the option of withdrawing from the purchase or demanding a reduction in the purchase price. However, this requires that the seller has been granted a reasonable period of time for subsequent performance, which has expired without success, and that no specific grounds for exclusion apply.
damages: In the event of a defective delivery, compensation can be claimed. A distinction is made between "major damages," in which the defective goods are returned and the buyer receives compensation for the full value of the goods, including any consequential damages, and "minor damages," in which the difference between the value of the defective and the non-defective item, including any consequential damages, is claimed.
guarantee: In addition to the statutory warranty, some sellers offer a voluntary warranty, which often represents a no-fault performance guarantee. The terms of these guarantees are set out in the warranty statement.
Right of withdrawal: The right of withdrawal allows consumers to unilaterally terminate a contract, similar to a cancellation. The statutory withdrawal period is 14 days from the conclusion of the contract or receipt of the goods. If the consumer has not been properly informed of their right of withdrawal, the period is extended to up to 12 months and 14 days. This also applies to contracts for work and services, provided the consumer has not been informed of their rights. No specific form is required for exercising the right of withdrawal, but written form by registered mail or fax is recommended for evidentiary purposes.
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Practical tip for defects in your photovoltaic system
If you notice any irregularities in your photovoltaic system, it is crucial to document them immediately and save all relevant correspondence. This ensures that your evidence is preserved to enforce your rights.
Request to remedy defects: Send a written request for defect rectification to your contractual partner in which you precisely describe the defects found.
Setting a deadline: Specify a reasonable time limit for the rectification of the defects, normally 2 to 4 weeks is appropriate, depending on the complexity of the problems.
Legal advice: A professional legal assessment is essential to accurately understand your claims and effectively enforce them.
Contact for an initial assessment: Use our contact form for an initial legal assessment. In an initial consultation, we will discuss the key aspects of your case, answer your questions, and formulate a tailored approach.
Reversing the purchase of a PV system: How to proceed
In order to reverse the purchase of a PV system, the buyer requires a statutory or contractual right of withdrawal or a right of revocation.
In this context, a so-called “repayment obligation” arises, in which both the purchase price and the investment itself must be mutually retransferred.
With the full return, all previously unfulfilled obligations arising from the contractual relationship are cancelled.
In addition, both parties are obliged to return all benefits derived from the use of the facility.
If it is not possible to return the system in its original condition, Section 346 of the German Civil Code (BGB) applies. In such a case, compensation must be paid to offset the resulting loss in value.
How much does it cost to dismantle a photovoltaic system?
The costs for dismantling a photovoltaic system in the event of withdrawal from the purchase contract depend on several factors.
If the buyer withdraws from the contract due to a defect, he or she has the right to demand compensation for the wasted expenditures under Section 284 of the German Civil Code (BGB). These expenditures include voluntary financial sacrifices made in the expectation of being able to use the facility, but which have become obsolete due to the withdrawal.
However, only those expenses incurred by the buyer in legitimate expectation of receiving the service are eligible for reimbursement. If the buyer was already aware of the defect or should have expected it, there is no entitlement to reimbursement of these costs.
The costs for dismantling and returning the system are often borne by the buyer. If the buyer exercises their right of withdrawal, they bear the return shipping costs in accordance with Section 357, Paragraph 5 of the German Civil Code (BGB), provided they have been properly informed of this obligation.
However, if the place of performance of the return is the seller, it is generally assumed that the seller has to bear the transport costs.
Practical tip: What is the place of performance in the law of obligations?
In the law of obligations, the place of performance, often referred to as the "place of fulfillment," is the location where the debtor must perform his contractual obligations. If the seller delivers a PV system directly to the buyer, the buyer's property is considered the place of performance, as this is where the contractual delivery obligation is fulfilled.
Place of performance when returning a PV system: Where is it in the event of withdrawal?
In the event of withdrawal from the purchase contract for a photovoltaic system due to defects, the place of performance is generally determined by the buyer's residence or place of business, unless otherwise agreed in the contract. In such a case, the seller is obligated to collect the system at its own expense.
However, costs for disassembly and materials are generally not covered by the return obligation and are therefore not to be reimbursed by the seller.
In the case of subsequent performance pursuant to Section 439 Paragraph 2 of the German Civil Code (BGB), the seller shall bear the costs for transport, labor, and materials. However, this provision does not apply in the event of withdrawal from the contract.
Legal tip: To still claim expenses for transport, materials, and labor, the buyer can file a claim for reimbursement of expenses under Section 284 of the German Civil Code (BGB). This is particularly relevant if the delivery is defective or if there is a claim for damages ("major damages").
Dismantling of photovoltaic systems under contract law: What buyers should know
If the contract for the delivery and installation of a PV system is considered a work contract, the consequences of withdrawal are regulated differently.
In the event of withdrawal from the purchase agreement, all services already provided must be reversed. This also includes the return of a photovoltaic system, even if it is permanently attached to a building. However, return is only possible if the system is not considered an integral part of the house or property and is technically separable.
If the return of the PV system is practically impossible, compensation will be paid instead. This compensation is based on the originally agreed remuneration, taking the value of the defect into account accordingly. Such compensation is similar to a claim for a reduction in price, since the remuneration is reduced according to Section 638 Paragraph 3 of the German Civil Code (BGB).
However, withdrawal from the contract does not allow the buyer to demand the return of a work that has already been started.
If a defect exists, the remedy of the defect or compensation can be demanded instead. It is important to note that, in contracts under VOB/B, Section 13 Paragraph 6 of the VOB/B excludes the right of withdrawal, and only a claim for reduction in price exists.
If the legal challenges of dismantling or reversing a defective PV system become complicated, we, as experienced energy law attorneys, are at your side. Whether it's a contract for work or a purchase agreement, we will examine your claims for withdrawal, reduction, or damages and support you in enforcing your rights against the provider.
Energy law attorney:
Support in case of defects and reversal of your photovoltaic system
Defects in photovoltaic systems can have a significant impact on your investment and electricity production. Our specialized energy law attorneys are available to assist you with all questions regarding warranties, withdrawal, rescission, and compensation to best protect your rights as a buyer or system operator.
Withdrawal and reversal of PV systems
If you discover defects in your PV system, you may have different claims depending on the type of contract—purchase or work contract. Our energy law attorneys will assess whether you have a right to rescission, replacement, or repair. We will then guide you through the legal steps for rescission or remedy of the defects.
Compensation and reduction in price for PV defects
If a defect leads to production losses or increased costs, you may be entitled to compensation. Our lawyers will clarify your options and enforce your claims, whether for lost feed-in tariffs or increased expenses. We also support you with work contracts if the dismantling of a defective system becomes necessary.
Secure contracts and enforce warranty claims
To ensure you are legally protected from the outset, we review contracts related to your PV system and ensure that your interests are comprehensively protected. Should dismantling a system become necessary, we will help you minimize costs and risks.
With our many years of experience in energy law, you are ideally equipped to assert your claims and find the optimal solution for your PV system. Contact us for a free initial consultation and find out how we can support you!
Professional advice & support
We offer you professional and comprehensive initial advice in the area of real estate law. Take your chance and avoid mistakes.
