Feed-in tariff

Updated: 18.02.2019

Author: Jörn Banasiak

The increased use of domestic and renewable sources for the generation of electricity is one major aim according to art. 1 c of the Energy Act (EnG). Since May 2008, the EnG grants producers of electricity generated from renewable energy sources a feed-in tariff for a period of up to 25 years. The amount of funding differs depending on the used technology and installed plant capacity.

Eligible technologies

In general, all renewable electricity generation technologies are eligible (art. 19 EnG).

Solar energy

Only PV-installations with a minimum capacity of 30 kW are eligible.

Wind energy

Eligible.

Geothermal energy

Eligible.

Biogas

Only sewage and landfill gas are eligible.

Hydro-power

Only plants with a capacity between 1 and 10 MW are eligible.

Biomass

Eligible.

Amount

The amount of tariff differs according to the source of energy used. 

Wind energy

The amount of tariff differs according to the source of energy used. The feed-in tariff is paid by the national grid operator Swissgrid.

The tariff for electricity produced by small wind turbines (≤ 10 MW) for the whole period is 0.23 CHF/kWh (0.203 €/kWh) (§ 3.1 of annexe 1.3 EnFV).

Large wind turbines (> 10 MW) receive for the first 5 years of operation 0.23 CHF/kWh (0.203 €/kWh) (§ 3.2.1. of annexe 1.3 EnFV).

After 5 years the average electricity production (effective output) of the installation is compared with the production of a reference installation in accordance with § 3.3.1 of annexe 1.3 EnFV:

  • If the production of the installation reaches or exceeds a 130% of the reference production, the tariff is decreased to 0.13 CHF/kWh (0.114 €/kWh) (§ 3.2.3.2. of annexe 1.3 EnFV).
  • If the production of the installations is lower than the reference production, the tariff is extended by 1 month per 0.3% below the reference value. After the extended tariff period the tariff is lowered to 0.13 CHF/kWh (0.114 €/kWh) (§ 3.2.3.2. of annexe 1.3 EnFV).

Solar energy

PV installations receive a tariff depending on their performance category (§ 2.1 of annexe 1.2 EnFV):

Performance category

Tariff (CHF/kWh) Start of operation 1 October 2016 - 31 March 2017

Tariff (CHF/kWh) Start of operation 1 April 2017 - 31 December 2017

Tariff (CHF/kWh) Start of operation 1 January 2018

≤ 100 kW

0.133 (11.7 €ct/kWh)

0.121 (10.7 €ct/kWh)

0.11 (9.7 €ct/kWh)

≤ 1000 kW

0.122 (10.8 €ct/kWh)

0.115 (10.2 €ct/kWh)

0.11 (9.7 €ct/kWh)

> 1000 kW

0.122 (10.8 €ct/kWh)

0.117 (10.3 €ct/kWh)

0.11 (9.7 €ct/kWh)

Geothermal energy

The amount of the tariff for geothermal energy plants depends on the  type of installation and the electric power output (Pel) of the plant:

 

Installation type

Performance category (Pel)

Tariff (CHF/kWh)

Hydro thermal installations

≤ 5 MW

0.40 (35.3 €ct/kWh)

≤ 10 MW

0.36 (31.8 €ct/kWh)

≤ 20 MW

0.28 (24.7 €ct/kWh)

> 20 MW

0.227 (20.0 €ct/kWh)

Petro thermal installations

≤ 5 MW

0.475 (41.9 €ct/kWh)

≤ 10 MW

0.435 (38.4 €ct/kWh)

≤ 20 MW

0.355 (31.3 €ct/kWh)

> 20 MW

0.302 (26.7 €ct/kWh)

(§ 4.2 and 4.3 annexe 1.4 EnFV)

Biogas

The maximum amount of funding is 0.265 CHF/kWh (0.234 €/kWh) for biogenic gas that is fed into the natural gas grid and used in a place other than the place of gas production for the generation of electricity (§ 4.1.1 annexe 1.5 EnFV).

Hydro-power

Tariffs for hydro-power plants are composed of a base payment and different kinds of bonuses (§ 2.1.1 annexe 1.1 EnFV).

Base payment: The amount of the base payment is calculated pro-rata in dependence of the equivalent capacity of the plant according to the following performance categories:

 

Performance category

Base payment (CHF/kWh)

≤ 30 kW

0.284 (25.1 €ct/kWh)

≤ 100 kW

0.188 (16.6 €ct/kWh)

≤ 300 kW

0.127 (11.2 €ct/kWh)

≤ 1 MW

0.090 (7.9 €ct/kWh)

≤ 10 MW

0.066 (5.8 €ct/kWh)

(§ 2.2.2. annexe 1.1 EnFV)

Compression bonus: The amount of compression bonus is determined by the gross drop height of the plant in proportion to the following drop height classes:

Drop height class (m)

Bonus (CHF/kWh)

≤ 5

0.056 (4.9 €ct/kWh)

≤ 10

0.033 (2.9 €ct/kWh)

≤ 20

0.024 (2.1 €ct/kWh)

≤ 50

0.019 (1.7 €ct/kWh)

> 50

0.012 (1.0 €ct/kWh)

(§ 2.3 annexe 1.1 EnFV)

Hydraulic engineering bonus: The Swiss Federal Office of Energy generally determines which measures entitle for the hydraulic engineering bonus. Under the current regulation, if the share of hydraulic engineering works is less than 20 percent of the total investment amount, no bonus is granted (§ 2.4.1 of annexe 1.1 EnFV).

If the share of hydraulic engineering works is higher than 50 percent of the total investment amount, the full bonus is granted, in dependency to the performance class of the installation as outlined below (§ 2.4.3 of annexe 1.1 EnFV),

 

Performance category

Base payment (CHF/kWh)

≤ 30 kW

0.062 (5.5 €ct/kWh)

≤ 100 kW

0.045 (4.0 €ct/kWh)

≤ 300 kW

0.029 (2.6 €ct/kWh)

> 300 kW

0.016 (1.4 €ct/kWh)

If the share of hydraulic engineering works is between 20 and 50 percent of the total investment amount, the bonus is gradually granted from 0% bonus if the share in 20% or below to 100% bonus if the share is 50% or more (§ 2.4.1 of annexe 1.1 EnFV).

Biomass

Tariffs for biomass plants are composed of a base payment and different kinds of bonuses (§ 3.1.1 annexe 1.5 EnFV).

Base payment: The amount of the base payment is calculated pro-rata in dependence of the equivalent capacity of the plant  according to the following performance categories:

Performance category

Base payment (CHF/kWh)

≤ 50 kW

0.28 (24.7 €ct/kWh)

≤ 100 kW

0.25 (22.0 €ct/kWh)

≤ 500 kW

0.22 (19.4 €ct/kWh)

≤ 5 MW

0.185 (16.3 €ct/kWh)

> 5 MW

0.175 (15.4 €ct/kWh)

(§ 3.2 annexe 1.5 EnFV)

Wood bonus: The amount of bonus for wood thermal power plants is calculated pro-rata in dependence of the equivalent capacity of the plant according to the following performance categories:

Performance category

Wood bonus (CHF/kWh)

≤ 50 kW

0.08 (7.1 €ct/kWh)

≤ 100 kW

0.07 (6.2 €ct/kWh)

≤ 500 kW

0.06 (5.3 €ct/kWh)

≤ 5 MW

0.04 (3.5 €ct/kWh)

> 5 MW

0.035 (3.1 €ct/kWh)

(§ 3.3 annexe 1.5 EnFV)

Agriculture bonus: A bonus for agricultural biomass is granted if:

1. Manure or manure in combination with crop residues and/or other residual materials is used and;

2. The share of agricultural co-substrates and/or energy crops is not exceeding 20% the fresh mass (§ 3.4.1 of annexe 1.5 EnFV).

The amount of agriculture bonus is calculated pro-rata in dependence of the equivalent capacity of the plant according to the following performance categories:

Performance category

Agriculture bonus (CHF/kWh)

≤ 50 kW

0.18 (15.9 €ct/kWh)

≤ 100 kW

0.16 (14.1 €ct/kWh)

≤ 500 kW

0.13 (11.5 €ct/kWh)

≤ 5 MW

0.045 (4.2 €ct/kWh)

> 5 MW

0

(§ 3.4.2 annexe 1.5 EnFV).

Addressees

Entitled party: The persons entitled are those electricity producers that comply with the terms and conditions for support pursuant to art. 19 EnG.

Obligated party: The national grid operator of Switzerland “Swissgrid” is obliged to pay the feed-in tariffs (art. 15 EnG)

Procedure

Process flow

Before the construction of a power plant an application form has to be submitted to the grid operator, including inter alia the position and size of the plant as well as the expected capacity.

After a fixed time period a report on the progress of the project has to be made to the grid operator, including inter alia the building licence. The time periods depending on the promoted technologies are:

  • Hydro-power: first progress report: max. 2 years after the release of a positive decision on the application, second progress report: max 4 years after the release of a positive decision on the application (§ 5.2.1 and 5.2.2 annexe 1.1 EnFV).
  • Wind energy: max. 4 years after the release of a positive decision on the application (§ 5.3.2 annexe 1.3 EnFV).
  • Geothermal energy: max. 3 years after the release of a positive decision on the application (§ 6.2.1 annexe 1.4 EnFV).
  • Biomass: max. 3 years after the release of a positive decision on the application (§ 8.2.1 annexe 1.5 EnFV).

Before starting operation of the plant a commissioning report has to be sent to the grid operator. Depending on the promoted technology the deadlines are:

  • Hydro-power: max. 6 years after the release of a positive decision on the application (§ 5.3.1 annexe 1.1 EnFV).
  • Solar energy: max. 12 months after the release of a positive decision on the application (§ 5.3 annexe 1.2 EnFV).
  • Wind energy: max. 7 years after the release of a positive decision on the application (§ 5.4.1 annexe 1.3 EnFV).
  • Geothermal energy: max. 6 years after the release of a positive decision on the application (§ 6.3.1 annexe 1.4 EnFV).
  • Biomass: max. 6 years after the release of a positive decision on the application (§ 8.3.1 annexe 1.5 EnFV).

Competent authority

On behalf of the Federal Government of Switzerland, the national grid operator is responsible for the implementation of the feed-in tariff (art. 15 EnG).

Degression

The yealy degression is 0 percent for all promoted technologies except for wind plants with a capacity of at least 10 kW (annexe 1.1 - 1.5 EnFV).

Wind energy

For wind plants with a capacity of at least 10 kW, the degression is 0% for the first five years of eligibility (§ 3.2.1 annexe 1.3 EnFV). After 5 years the average electricity production (effective output) of the installation is compared with the production of a reference installation in accordance with § 3.3.1 of annexe 1.3 EnFV: 

If the production of the installation reaches or exceeds a 130% of the reference production, the tariff is decreased to 0.13 CHF/kWh (0,114 €/kWh) (§ 3.2.3.2. of annexe 1.3 EnFV).

If the production of the installations is lower than the reference production, the tariff is extended by 1 month per 0.3% below the reference value. After the extended tariff period the tariff is lowered to 0.13 CHF/kWh (0,114 €ct/kWh) (§ 3.2.3.2. of annexe 1.3 EnFV).   

Eligibility period

The eligibility period for the feed-in tariff is 15 years for all technologies other than Biomass and Biogas (20years). 

  • Wind energy: The tariff payment period for wind power plants is 15 years (§ 4 annexe 1.3 EnFV).
  • Solar energy: The tariff payment period for PV installations is 15 years (§ 3 annexe 1.2 EnFV).
  • Geothermal energy: The tariff payment period for geothermal power plants is 15 years (§ 5 annexe 1.4 EnFV).
  • Biogas: The tariff payment period for biogas is 20 years (§ 7 annexe 1.5 EnFV).
  • Hydro-power: The tariff payment period for hydro-power plants is 15 years (§ 4 annexe 1.1 EnFV).
  • Biomass: The tariff payment period for biomass is 20 years (§ 7 annexe 1.5 EnFV).

Distribution of costs

Consumers

The costs of the feed-in tariff for electricity from renewable sources (KEV) are borne by the consumers by paying a surcharge on the electricity prices (art. 35 EnG).

Distribution mechanism

The grid operator may impose a surcharge on the transmission fee for the funding of enlargement and reinforcement measures regarding the transmission grid (art. 35 EnG). The fee may be passed on to the operators of the distribution grid, which are in addition entitled to pass the costs on to the final consumer (art. 35 EnG). The maximum surcharge allowed for the final consumer amounts to 0.023 CHF/kWh (2 €ct/kWh) of electricity consumed (art. 35 Par. 3 EnG). 

Switzerland
Electricity

Further information

  • Agentur für Erneuerbare Energien und Energieeffizienz (Agency for Renewable Energy and Energy Efficiency)
  • +41 31 301 89 62
  • AEE website

Basic information on legal sources