CMS CEE Expert Guide to Solar Panel Installation in Romania

Regarding the installation of rooftop PV plants, the most common title, besides ownership title, is the lease right, meaning that the owner of the building/rooftop grants the right to the investor to use the rooftop for the installation of the PV system. 

In turn, investors who have the track record and capabilities to install and operate a PV system, lease the installation to the owner of the building for the PV plant’s lifetime (or until full amortisation). Generally, PV systems are leased to the owner of the building for a certain duration of 15-20 years against a price that accounts for the electricity produced and availability guaranteed. During this period, the PV system is owned by the investor, while the owner benefits from prosumer status. Rooftop leases are generally equal to the duration of the contract granting the owner the right to benefit from the produced electricity.

As a breakthrough in the Romanian legal framework, the installation of PV systems on rooftops for the production of electricity by prosumers is exempt from the obligation to obtain a building permit, if the structure of the existing building can support the additional load (and this is proven through a technical assessment). Otherwise, a building permit is required. In addition, there are no zoning limitations, except on properties with a special zoning regime (historical properties, the old city centre, etc.) where certain limitations could apply on a case-by-case basis. Therefore, for such buildings, the permitted zoning should be checked and amended via a zoning plan beforehand.

The National Energy Regulatory Authority (“ANRE”) is the competent authority for issuing the electricity generation licences. The ANRE is also responsible for issuing the setting-up authorisation which allows for the establishment of a new electricity generation unit (required for new electricity generation units with an installed capacity higher than 1MW). The setting-up authorisation is required at an advanced stage of the development process, and typically is requested after the issuance of the connection permit (ATR).

The National Transmission and System Operator (Transelectrica) is the competent authority for issuing an ATR in projects where the generated electricity will exceed 50 MW.

If the envisaged project will generate less than 50 MW, the ATR will be issued by the competent distribution operator.

From an energy regulatory perspective, the most important permits are the ATR and the setting up authorisation. Another permit only necessary for solar and wind plants is a technical conformity certificate, which is a prerequisite for the generation licence. The technical conformity certificate acknowledges the compliance of solar/wind plants with an installed capacity above 1 MW with the technical requirements for grid connection and is issued by the grid operator.

Grid connection is performed on a first-come first-served basis, while the right to connect may be refused solely to objective criteria (on exemptional conditions). Otherwise, connection is subject to grid availability which will finally determine the connection conditions. 

For the connection to the grid of a new consumption and production site belonging to a prosumer, the following steps must be carried out in chronological order, as appropriate:

1. the preliminary stage of documentation and information of the prosumer;
2. submission of the connection request to the distribution system operator and the related documentation to obtain the ATR;
3. determination of the solution study and issuing the ATR;
4. conclusion of the grid connection contract;
5. carrying out the connection work to the grid and commissioning the connection installation;
6. powering up the installation for testing;
7. issuing the connection certificate of the consumption and production site by the distribution system operator;
8. final activation of the user installation.

In general, securing all the necessary authorisations and permits for construction of a PV plant usually takes around nine months from securing the building permit. Given that the installation of a rooftop PV plant is exempted from the obligation to secure a building permit, the permitting process is faster. The project goes straight to the ATR stage.

The legal process of securing a lease is not complicated and depends on the parties' negotiations.

The lease transfers to the new owner on the sale of the property, to the extent it has been previously registered with the Land Registry of the property. In an enforcement against the asset, the acquirer is entitled to terminate a lease (despite its prior registration with the Land Registry), if such lease does not meet certain financial and market criteria.

This depends on the agreement of the parties and contractual arrangements. PV systems should be removed by the tenant if agreed contractually, but more often, there is an arrangement with the beneficiary to take them over on termination, against a certain price (residual value). 

Neither of the two, by law. This sharing of costs and benefits is regulated in the lease, if the parties agree it.

There is no such regulation in Romania.

Even if the installation of PV systems is exempted from the building permit, there is an obligation to notify the local authorities of the new investment. There are cases where the local authorities take the approach that if the prosumer has a capacity over 400 kV, then a building permit is required.

The Romanian Ministry of Energy has recently put in public consultation a state-aid scheme aimed at supporting investments in the whole value chain of photovoltaic cells and panels (production, assembly and recycling). The state-aid scheme aims to bring into operation at least 200 MW/year of PV cell or panel production and assembly and recycling capacity by 31 December 2025. The budget for the scheme is EUR 49,750,000. 

In March 2022, the Ministry of Energy launched a call for projects aimed at supporting investments for the installation of new electricity generation capacities from renewable wind and solar energy sources with or without integrated storage facilities. The total value of the project call was approximately EUR 595 million with EUR 497 million allocated for new capacities higher than 1 MW. The state-aid scheme is currently ongoing. 

In addition, Romania has an annual financing programme called the Green House for Photovoltaics, which is designed for individual persons. Funding is granted up to a maximum of RON 20,000 (approx. EUR 4,000), subject to the beneficiary's own contribution of RON 2,000 (approx. EUR 400).