The deal is part of a wider agreement between Norway's centre-left minority government and the opposition Socialist Left Party on a revised fiscal budget for 2023.

The parties agreed that new buildings must include solar power and/or locally produced energy, unless project-specific circumstances rule out such inclusion. The demand will also apply to larger upgrades and refurbishment projects.

In addition, the government should introduce legislation in 2024 to mandate the same rules for larger commercial buildings.

The deal also seeks to simplify permitting for new commercial solar power installations as well as removing obstacles for sharing solar-generated electricity locally.

Under the budget deal, Norway will also establish a 2030 target for 8 terawatt hours (TWh) of annual solar power production, around 5% of the country's average annual output of around 155 TWh.

Norwegian power generation is dominated by hydro and wind power but it could face a power deficit from as early as 2027, prompting calls for a speedier deployment of new electricity production.

Solar power in Norway currently produces around 0.3 TWh per year, according to energy regulator NVE.

Norway significantly lags its Nordic neighbours, with solar power accounting for 1.2% of Swedish power generation in 2022, while taking a 6.1% share of Danish power demand.

(Reporting by Nora Buli; editing by Jason Neely)