New Swiss Rules Encourage Battery Storage Growth

Switzerland’s Federal Council has approved new energy rules that encourage the use of battery storage and self-consumption of solar electricity by linking feed-in remuneration more closely to market prices. 

Under the revised Energy Ordinance, distribution grid operators will be allowed to compensate solar electricity based on the market price at the time the electricity is fed into the grid if no separate agreement is reached with producers. 

The measure responds to rising solar generation in Switzerland, which has led to more periods of negative electricity prices during sunny hours. The Federal Council said the change is intended to reduce electricity feed-in during periods of low or negative prices and encourage on-site consumption or storage of solar power instead. 

It explained, “As solar power production in Switzerland increases, electricity surpluses become more frequent on sunny days. This results in a growing number of hours with negative market prices. If grid operators and producers cannot agree on compensation, the new regulation will align with the market price at the time of feed-in.” 

Minimum compensation rates for installations below 150 kW will remain unchanged, according to the council. If market prices fall below the minimum compensation level, grid operators will pay the difference to eligible producers on a quarterly basis. 

The new rules for renewable electricity remuneration, announced on May 27, 2026, will take effect on January 1, 2027, with a 1-year transition period. 

Industry association Swissolar welcomed the amendments, saying this creates a clear incentive to store solar power locally or use it directly, rather than feeding it into the grid when prices are low. In other words, the new remuneration model creates stronger market incentives for solar electricity production and storage, added Swissolar. 

According to the association, linking remuneration to hourly spot market prices will encourage producers to store electricity locally or increase direct consumption rather than exporting power to the grid during low-price periods. 

It will especially support operators of solar systems with low self-consumption, as they may face greater exposure to low daytime electricity prices. However, it said declining battery storage costs are making storage systems increasingly attractive for solar plant owners. 

Energy models such as Self-consumption Communities (ZEV) or Local Electricity Communities (LEG) allow solar electricity to be consumed or traded within neighborhoods rather than sold directly to the electricity market through grid operators. This could also boost self-consumption instead of feeding electricity into the grid. 

Swissolar calls on the Swiss Federal Office of Energy (SFOE) to provide free public access to Swiss day-ahead electricity prices and establish an open application programming interface (API) to help energy management systems optimize battery charging, storage, and electricity use. 

By 2050, Switzerland targets solar PV to generate 34 TWh of clean energy from 37.5 GW of installed capacity, out of the national renewable energy target of 45 TWh annually. By 2030, solar is expected to generate 18.7 TWh of clean energy. A recent Swissgrid study highlighted grid challenges in accommodating high volumes of decentralized and variable solar generation, while calling for market-based signals, storage, and reduced grid connection limits (see Switzerland Explores Grid-Friendly Integration Of 40 GW Solar).