"If the Federal Council is now considering abolishing the program — or at least withdrawing the federal contribution — it is mainly because of the windfall effects it generates," explains Philippe Thalmann, professor of environmental economics at EPFL.
"Today, 70% of our results come from abroad, while 70% of our investments are made in our historic service territory in Switzerland," says Cédric Christmann, Chief Executive Officer of Primeo Energie.
Rethinking feed-in tariffs to support photovoltaics
"The adoption of new tariff principles would be a strategic lever to accelerate the energy transition, promote local production and strengthen the resilience of the national electricity system," says Cécile Theumann, vice-presidente of ADER.
The development of renewable energies, in particular photovoltaics (PV), relies on solid framework conditions, among which the feed-in tariff for electricity injected into the grid plays a crucial role. This tariff constitutes a decisive economic signal, capable of supporting or slowing investments in solar installations.
Since 1 January 2025, the majority of feed-in tariffs applied in Switzerland are indexed to reference market prices. In 2024, these prices were around 3.5 cents per kilowatt-hour (cts/kWh) in summer and 7 cts/kWh in winter, although they were marked by strong volatility. However, this approach based purely on market prices overlooks several fundamental elements.
Firstly, the valuation of guarantees of origin (GO), which certify the renewable nature of the electricity produced, remains insufficient. While some distributors already recognize this value, the portion of self-consumed electricity, which avoids resorting to fossil-based production, should also be taken into account. To overcome the administrative constraints related to this recognition, it would be sensible to propose the introduction of a flat premium of 4 cts/kWh on injected electricity, thereby indirectly compensating self-consumption.
Secondly, security of supply, a major strategic issue, varies by season. In summer, the concerns relate more to capacity and grid management, which do not justify additional valuation. In winter, however, every kilowatt-hour injected into the grid contributes significantly to national energy security, in a context of reduced nuclear capacity and uncertainties regarding imports. The application of a specific premium for winter production would therefore be fully justified.
@ADER
Finally, since the price of electricity is a strong economic signal for producers and investors, the Association for the Development of Renewable Energies (ADER) has developed a tariff structure integrating three dimensions
A 4 cts/kWh premium related to the guarantee of origin, applicable year-round
A 4 cts/kWh "security of supply" premium, applicable only in winter
A 4 cts/kWh "economic signal" premium for winter.
Thus, the recommended total tariff would amount to 7.5 cts/kWh in summer and 19 cts/kWh in winter.
From today, ADER calls on electricity suppliers to consider this new price grid and how to integrate these parameters into the setting of their feed-in prices. The adoption of such tariff principles would represent a strategic lever to accelerate the energy transition, value local production and strengthen the resilience of the national electricity system.
While collective reflection is necessary to evolve remuneration models in line with current climate and energy challenges, it is also essential that electricity companies take a position on these proposals. The ball is now in their court.
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"If the Federal Council is now considering abolishing the program — or at least withdrawing the federal contribution — it is mainly because of the windfall effects it generates," explains Philippe Thalmann, professor of environmental economics at EPFL.
"Today, 70% of our results come from abroad, while 70% of our investments are made in our historic service territory in Switzerland," says Cédric Christmann, Chief Executive Officer of Primeo Energie.