Our draft policy proposal package on the legalisation and regulation of plug-in solar PV systems in Hungary is ready – and we are now inviting feedback!
In the study, we examined the current Hungarian regulatory framework, international experience, potential impacts on the electricity grid, and which groups could genuinely benefit from this technology.
Our key findings are:
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They should not be thought of simply as “balcony solar”. These small-scale systems can be installed not only on balconies, but also on terraces, façades, in gardens, on garages, or on outbuildings. They could create new opportunities particularly for people living in apartment buildings or rental housing, those without access to their own roof space, or those unable to invest in a conventional rooftop solar PV system.
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The main barrier to their uptake today is not technological, but regulatory. Current Hungarian regulations do not distinguish plug-in solar systems from conventional household-scale small power plants (HMKE). As a result, even a system with a capacity of only a few hundred watts is subject to disproportionately burdensome administrative and technical requirements.
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Planning and building regulations also create barriers. Current national rules, for example, effectively rule out installation on balconies and place strict limitations on façade-mounted systems, while local municipal regulations may introduce further restrictions.
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Our most important conclusion is that there is no justification for regulating a 600–1,200 watt consumer device in the same way as a household-scale power plant with a capacity of several tens of kilowatts.
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The Hungarian public is open to the technology. According to our nationally representative survey, 62% of the adult population would support legalising plug-in solar PV systems, while among people experiencing material deprivation, this proportion reaches 83%. Safety was identified by respondents as a paramount consideration.
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One of the greatest social benefits of plug-in solar systems is that they could make solar energy accessible to households that are currently largely excluded from it. These may include apartment dwellers, tenants, people experiencing energy poverty, as well as residents of municipal and social housing.
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An 800-watt system, if favourably installed in Hungary, could generate up to 1,000 kWh of electricity per year. For vertically mounted balcony systems, or installations affected by shading or less favourable orientation, a more realistic range is around 360–800 kWh/year. The share of electricity consumed directly on site can be increased further by timing consumption properly, for example by operating water heaters, washing machines, air conditioners, or other daytime loads while the system is generating
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In our policy proposal package, we recommend a reduced VAT rate of 18% for plug-in solar systems and the necessary supplementary equipment. Targeted financial support is also needed for those who cannot afford the system from their own resources.
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We also propose a “social balcony solar programme” implemented through municipalities. Under this model, 70% of the investment cost would be covered by national or EU funding, 20% by the municipality, and 10% by the beneficiary. For the most vulnerable households, waiving the beneficiary co-payment altogether may also be warranted.
Overall, we concluded that introducing plug-in solar systems in Hungary is technically feasible, socially supported, and manageable from a grid perspective.
They do not replace conventional solar systems or energy-efficiency investments. Their real significance lies in the fact that they can provide a cheaper and simpler entry point into the energy transition for those who are currently largely excluded from it. Achieving this, however, requires a substantial simplification of the current Hungarian regulatory framework and support programmes specifically targeting vulnerable households.
📄 Download and read the document, and send us your professional comments, additions, and recommendations on our proposal package to energiaklub@energiaklub.hu by September 25. We will review all feedback received before finalising the document.
