Swiss renewables subsidy

Plants built since 2014 have received a one-off lump payment to compensate the investor, financed by the cost-covering feed-in tariff, the KEV. The small KEV of 2.3 cents per kWh purchased from the grid is tiny compared to Germany, where the FiT is over 6 cents.

And only half of this is for remuneration of renewable energy plants. For PV plants built from 2019 the subsidies have been raised, and the remuneration waiting time has been shortened from three years to 18 months for small-scale plants, three years for large-scale. Half of the network surcharge (KEV) of 2.3 c/kWh, or 1.2 c, is for feed-in remuneration for new renewable energy plants. The other half is for support for hydropower and other costs. This subsidy will be phased out after six years, and as of 2031, no new investment contributions / one-time remuneration will be made.

New renewables and small hydro (<10MW) 2009-2017 received cost-covering feed-in-tarif (KEV). From 2014 this was replaced by one-off compensation (Einmalverg├╝tung), financed by a 1.5c/kWh grid surcharge on electricity bills. This surcharge was raised as of 01 Jan 2018 to 2.3c/kWh, along with other modifications, such as obligations for direct marketing. Previously run by ElCOM, the system is now operated by Pronovo AG.

Financing of incentives
The promotion of domestic renewable energies and electricity efficiency is financed by the grid surcharge paid by households and companies. This currently amounts to 1.5 cents per kWh. With the bill, it is to be increased to 2.3 cents/kWh. This results in an additional CHF 480 million per year. A quarter of the increase, i.e. 0.2 cents/kWh or 120 million Swiss francs, will benefit existing large-scale hydropower plants. A household with four persons and average electricity consumption will have to pay around 40 francs more per year than today when the grid surcharge is increased (average electricity consumption of a household with four persons: 5000 kWh/year). Electricity-intensive companies will continue to receive a refund of the grid surcharge under certain conditions. These conditions are made easier with the submission.) The support is limited in time: New commitments may be made until the end of 2022 for feed-in tariffs and until 2030 for investment contributions. Parliament has thus ensured that the support measures expire and the costs are limited. Chart: Development of the specific investment costs (CHF/kWp) for a 30 kW photovoltaic system in Switzerland. In the period from 2010 (5600 CHF/kWp = 5.60 CHF per W) to 2017 (1800 CHF/kWp = 1.80 CHF per W) a reduction of 70% was observed (source: SFOE) [Remedia note: @ 8c per kWh and 1000 hours of peak sunshine, this would take 22.5 years to amortise at 1.80 per kWh.