By Elle Nicholson, TXSES Researcher January 21, 2026
A balcony solar installation in Tauberbischofsheim, Germany. © Andek/Wikimedia Commons
Historically, solar panels have not always been feasible in urban environments due to spacing issues. However, new solar technology has recently emerged that can provide renewable energy even in limited spaces.
Balcony solar panels are compact (300–800 watt) plug-in systems consisting of a few PV panels that can be coupled with an inverter and/or battery storage. The systems are designed to be modular and can be fixed upon balcony railings, walls, or stands. As such, they are most frequently installed on multifamily apartment and condominium buildings.
There are a variety of benefits to installing balcony solar panels. Like traditional rooftop solar, they reduce energy bills and reliance on the power grid. For example, one owner interviewed by a German news outlet said he can produce enough solar for half of his family’s daily needs. When compared to rooftop solar, balcony solar does not disrupt existing structures or require access to a roof, solving two major issues that come with traditional solar panels.
Additionally, balcony solar is substantially cheaper than rooftop solar. Differing models range in price from around $400–$2,000, depending on the size of the system. In contrast, rooftop solar installations can cost tens of thousands of dollars and will now be even more expensive with the upcoming termination of federal tax credits.
Nevertheless, there is a noteworthy downside to balcony solar—the panels’ small size means they produce significantly less energy than traditional panels. Moreover, some balconies may have less exposure to sunlight than a rooftop would have, due to shading from higher apartment units or nearby buildings and/or being north-facing. This results in more modest utility bill savings, so balcony solar may not be worth the investment for some apartment owners.
While balcony solar panels have not taken off yet in the US, they have become widely popular in parts of Europe, particularly Germany. Germany currently has around 550,000 balcony solar systems installed, and added 200 MW in the first half of 2024 alone. This is partially because apartment dwellers comprise more than half the population of Germany, and partially because the technology helps combat increased energy prices following the Russian invasion of Ukraine. Many German cities offer subsidies for balcony solar, as well, making the systems even more affordable for consumers.
Conversely, the US has very few balcony solar systems installed. This is largely due to poor regulations that have not kept pace with emerging solar technologies. Electrical interconnection agreement regulations govern how electricity-generating resources, such as solar panels, connect to the power grid. In nearly every state, these regulations include balcony solar panels, forcing balcony solar owners to adhere to strict requirements designed for larger solar projects. Not only does this make balcony solar more difficult to install but it is also an unnecessary measure for a home system of such small wattage. Further balcony solar has not been approved to comply with the National Electrical Code or an Underwriters Laboratories standard—key safety certifications that would spark more interest among apartment owners and make them easier to attain.
Improving regulations to appropriately cover balcony solar panels would help the technology gain traction in the U.S., thereby opening new avenues for renewable energy in urban environments. One California startup, Bright Saver, for example, provides a real-world solution for this problem. The company has begun installing balcony solar systems and marketing them as appliances, rather than construction projects, to bypass strict municipal permitting requirements.
To avoid state interconnection requirements, Bright Saver uses complex energy monitors that prevent any surplus electricity from flowing back into the grid. Unfortunately, such measures are expensive and time-consuming, demonstrating the need for improved regulatory standards. By updating regulations to keep pace with technological advancements, the US can and should follow Germany’s lead and reap the benefits of balcony solar systems.
About the Author
Elle is pursuing a degree in philosophy at the University of Texas at Austin, with a minor in Government and a Business Spanish certificate, and plans to build a career in international environmental law. She is a research associate for Texas Solar Energy Society, where she primarily analyzes a variety of legislative and technological topics. In addition, she has interned with a London-based global sustainable consultancy and conducted alternative energy research for the regulatory department of an electrical engineering firm.