New Financing Options For Solar Panels On Commercial Buildings

An amendment to the law is expected to create new financing options for solar panel systems. Yesterday, the Danish government introduced a proposal to support the development and expansion of solar panel systems.

Under the current law, section 38 of the Danish Registration Act (in Danish: tinglysningsloven), separate rights cannot be maintained over a solar panel system installed on a building if the system is:

1. integrated into the building;
2. acquired at the owner's expense; and
3. acquired for the use of the building.

This means that the solar panel system is considered part of the property on which it is installed, and any existing (or subsequently registered) mortgage will automatically include a security right over the solar panel system. As a result, third parties cannot register a separate security right (mortgage) over the solar panel system or reserve separate rights. Furthermore, the solar panel system cannot be removed from the property by,