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Hungarian Government Forbids Solar Panels on Balconies and Agricultural Lands

Hungary
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On 1 October 2024, the Hungarian Government published a decree on the basic regulations of settlement planning and construction requirements, which fundamentally rewrites and clarifies the frameworks for construction and property planning in many areas. Among these, one regulates the placement of solar panels and solar collectors, while another sets out the general framework for the installation of wind turbines.

On solar panels and solar collectors, the decree states that solar panels can only be installed integrated into the architectural façade of a building, and they cannot be placed on balconies, either on independent supporting structures or built into the balcony structure. On public land, solar pavement can only be created with a slip-resistant surface. Solar panels and solar collectors cannot be installed on monuments; on properties designated as monuments and in areas of cultural heritage, they can only be installed with the approval of the heritage protection authority. With the exception of economic and industrial areas, the area of solar panels and solar collectors cannot exceed 30% of the area of parking spaces.

Renewable energy installations, except for small household power plants, cannot be placed in forested, agricultural, or nature-like areas; however, installations legally placed in such zones before the entry into force of this regulation may remain, and renewable energy installations with final permits for power generation and grid connection may be placed. Solar panels and solar collectors can only be placed in side and back yards in residential areas if they are not visible from public spaces.

The Governmental Decree will come into effect on January 1, 2025.

Based on the EU rules, Member States can aid the adoption of balcony solar, but it is not mandatory, and it has not been embraced by all countries. Belgium, notably, has banned plug-in solar devices over fears about the impact of having unregistered systems feeding into the electricity grid. Austria, France, Italy, Poland and Luxembourg have all taken an encouraging stance towards balcony solar, while renewable energy campaigners in Spain are seeking to get their government to loosen the rules soon.

By Lilla Majoros, Attorney at law, KCG Partners Law Firm

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

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DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

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