End of an era: Solar power pricing becomes dynamic in Switzerland

Swiss households equipped with photovoltaic installations face a significant shift in how they are compensated for their solar power. Starting January 1, the long-standing model of receiving a constant price for electricity fed into the grid will end, according to a press release from the Swiss Association of Electrical Companies (AES).

Under the new system, owners of solar panels will be remunerated based on the actual value of electricity on the market. This change is mandated by the federal law "for a secure electricity supply" and has been possible since the beginning of the year.

Several energy providers are already adapting to this new dynamic. Romande Energie, for instance, is testing new pricing structures that more closely align with market fluctuations. However, other utility companies, such as Services industriels de Genève (SIG) and Groupe E, are still operating under the previous model.

The previous system, introduced in 2009, guaranteed a fixed rate for solar power injected into the grid. While this provided stability for solar producers, the AES noted that the remuneration under this model had already been on a global downward trend.