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Creating local value through renewable energy projects

Together for your community

Strengthen the future of your community sustainably with wind or solar power projects: Trade taxes, lease income or the financial participation of local authorities in accordance with § 6 EEG 2023 ensure regular income and strengthen the local economy. At the same time, your local authority’s energy supply becomes more independent and you reach an important milestone on the path to climate neutrality.

Together with you, we develop individual concepts to achieve the greatest possible added value for your region.

Our aim: a project that creates definite added value for your municipality and contributes significantly to the energy transition.

Why a renewable energy project in your local community is worthwhile

Through wind or solar energy projects, municipalities can benefit from financial participation in accordance with Section 6 of the German Renewable Energy Sources Act (EEG 2023), achieve their climate targets and increase their trade tax revenue. This creates economic impulses, which supports the development of the municipality and can strengthen it in the long term. Together, we analyse which opportunities for participation and value creation make the most sense locally.

We pay great attention to being as transparent as possible and complying with all laws and regulations, if necessary in consultation with the responsible supervisory authority.*

*The options shown are not specific offers from BayWa r.e., but demonstrate theoretical potential for local value creation through renewable energy projects in municipalities.

The introduction of Section 6 of the EEG 2023 created the legal basis for municipalities to receive financial benefits from renewable energy projects. Local authorities can now receive up to 0.2 cents per kilowatt hour if a ground-mounted solar installation is built on the area of the municipality or if part of their municipal grounds are within 2.5 kilometres of a wind farm.

For our wind energy projects, by signing a voluntary commitment from the German Association of Energy and Water Industries (BDEW), we have once again confirmed that we will implement the voluntary regulation within the framework of Section 6 EEG 2023 on a mandatory basis. Depending on location, local authorities affected by wind energy projects can expect to receive €20,000 to €30,000 per wind turbine per year. For a wind farm with five turbines and a minimum operating period of 20 years, this amounts to a total of €2 to €3 million.

For our solar projects, we generally plan to make use of the benefits offered by Section 6 of the EEG 2023 for the local communities we work with. However, for ground-mounted PV systems, the corresponding contractual regulations may only be agreed between the municipality and the project developer after the resolution on the articles of association has been passed in accordance with Section 6 (4) no. 2 EEG 2023.

Trade tax also brings money into the municipality funds. Since a new regulation on the apportionment of trade tax in 2021, at 90% the majority of the trade tax payments now go to the local authority, while only the remaining 10% must be paid to where the operating company has its registered office.

The payment of trade tax depends on the economic success of the operator. Usually, trade tax is incurred for renewable energy plants in the ‘last third’ of the term or after the financing phase.

As owner of the land, the local authority and its residents can benefit directly from long-term and secure lease income for at least 20 years, all without having to make any investment or take any risk of their own. Land is not only required for the solar or wind farm itself, but also for compensatory and replacement measures, such as flowering meadows, ponds or other biotopes.

BayWa r.e. is committed to working with local businesses as part of the installation process. We award contracts to regional companies, where possible, for services including the preparation of necessary expert reports, surveying services, construction services such as road construction and cable construction, clearing, winter maintenance, and green maintenance of the solar farm.

Crowdfunding is one way of directly involving local residents in the immediate vicinity of a solar or wind farm. Residents can invest even small amounts in the project and thereby benefit directly. Find an overview of our crowdfunding campaigns here

Electricity cost subsidy from local solar or wind farms

For solar and wind energy projects, it is possible to grant residents an electricity cost subsidy from the proceeds of the energy project, e.g., via annual payments.

Important: in the case of solar farms, negotiations and agreements are generally only possible after consultation with the responsible supervisory authority.

Sponsorship for a range of activities, including sports clubs, cultural events or non-profit organisations, are also possible providing the recipients of sponsorship are independent of political decision-makers. BayWa r.e. is committed to long-term cooperation based on partnership.

An example of an successful sponsorship project includes support for the Zobersdorf sports club connected with the Bad Liebenwerda solar park. Find more information about the sponsoring on this page

Through a foundation (or another non-profit organisation) e. g. local activities for traditional customs, education, culture, environmental protection or sport can be supported, provided they operate independently of the municipality.

BayWa r.e. can make donations from the proceeds of the renewable energy project, or provide start-up funds, but will have no influence on the foundation or how the funds are used.

We have already implemented such a foundation in the Dollenkamp wind farm project in North Rhine-Westphalia, for example. Find out more about the Dollenkamp community foundation on this page

Important: Negotiations and the conclusion of corresponding agreements are generally only possible after consultation with the responsible supervisory authority.

It is important for us to involve the municipalities and citizens in our projects from the very beginning and, where possible, to let them benefit from it. For example, BayWa r.e. has regularly campaigned for the introduction of a municipal levy for municipalities in accordance with Section 6 EEG. We therefore very much welcome this legal regulation!

Marc Krezer

Managing Director Projects Germany

Interested in a wind or solar farm in your community? Talk to us!

We rely on transparency and an open and honest dialogue to ensure the acceptance of renewable energy projects in your community. From the outset, we provide information and, above all, listen to all those involved – the property owners, the local residents and you, as a municipal representative.

Our range of dialogue offers includes, among other things:

  1. Local citizen information events with experts

  2. Project websites that provide information on the current planning status

  3. Project newspapers distributed to households in your community

  4. Walks in your community with a video simulation of the planned wind farm

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