Switzerland Introduces New Solar Subsidies Under HEIV

• A new funding scheme called HEIV has been introduced in Switzerland for systems ranging between 2 kW and 150 kW
• 60% of the investment costs are planned to be covered, which can be increased if deployed in tilt fashion
• Eligible systems will need to operate for 15 years without self-consumption, and all electricity generated to be fed into the grid

The Government of Switzerland has introduced a new funding model targeting small scale solar PV systems commissioned from January 1, 2023, with the high one-time payment for photovoltaic systems (HEIV) under which up to 60% of investment costs for reference systems will be reimbursed.

This funding will be available to solar systems with a minimum output of 2 kW and less than 150 kW that need to be operational for 15 years without self-consumption. All electricity generated by these needs to be fed into the grid.

According to local PV association Swisssolar, the government will shell out CHF 450 per installed kW under HEIV and the amount will go up if the system is deployed in a tilt fashion.

Beneficiaries of the system will be eligible for HEIV funding for a newer system only if the application is submitted within a year after the new system is operational without self-consumption on the same premises.

For systems of 150 kW, there will be auctions as part of the HEIV program.

"The HEIV is intended for systems that require a higher subsidy due to a lack of opportunities for self-consumption. For this reason, a HEIV system must not have any self-consumption for 15 years, even if corresponding opportunities arise during this time. If they do, the additional funding must be repaid proportionately," according the Federal Energy Agency (BFE).

According to BFE, the auctions will allow for a maximum bid, which will be around 60% of the investment costs of reference systems in the segment over 150 kW. Four auction rounds are expected to take place in 2023 – on Feb. 1, at the start of May, August and November. The tender volumes will be between 30 and 50 MW.

Switzerland continues to offer its other solar subsidy schemes, which are available as one-time payment for small PV systems under KLEIV and one-time payment for large PV facilities under GREIV (see Switzerland Promising Subsidies For New Solar In 2023 & Beyond).

Switzerland is promoting renewable energy to ensure energy security for the country as it targets to achieve 35 TWh renewable energy production by 2035, scaled up to 45 TWh in 2050 (see Switzerland Bats For 45 TWh RE Production In 2050).

Swissolar counts this 45 TWh to translate into close to 50 GW installed capacity, and to achieve it the country needs to install around 2 GW annually by 2030, up from 1 GW it forecasts for 2022. In 2021, Switzerland brought online 683 MW new PV capacity (see Switzerland Added 683 MW New Solar In 2021).