BERNE, Switzerland — In a strategic move to address the country’s winter energy shortfall and accelerate its renewable energy transition, the Swiss Federal Council has announced a new winter electricity bonus for photovoltaic installations. The performance-based incentive, set to take effect on January 1, 2026, will replace the existing altitude bonus and specifically target solar systems with enhanced winter production capabilities.

A Targeted Approach to Winter Energy Security

The newly approved winter electricity bonus represents a carefully designed policy shift aimed at rewarding solar installations that significantly exceed average winter electricity production levels. The mechanism will apply to photovoltaic systems of 100 kW or more that commence operation from January 1, 2026, onward.

“Switzerland is taking a targeted approach to solve its winter electricity gap,” said a representative from the Federal Council in an official statement. “By incentivizing higher winter yields, we’re not only increasing our renewable energy capacity but specifically addressing seasonal vulnerabilities in our energy supply.”

To qualify for the bonus, installations must exceed a threshold of 500 kWh/kW generated during the winter half-year from October 1 to March 31. The bonus calculation will deduct 500 kWh/kW from the total winter yield, ensuring that only systems with significantly higher winter electricity production compared to average solar installations receive support.

This calculation method specifically targets installations that outperform typical solar systems in the Swiss Plateau, which generally yield between 250 and 300 kWh/kW during winter months. As explained in the government’s explanatory report: “This calculation method is intended to ensure that only those installations with a significantly higher specific winter electricity yield compared to an average installation in the Swiss Plateau benefit from the winter electricity bonus”.

Bonus Structure and Implementation

The winter electricity bonus will be calculated as a one-time payment based on the specific winter electricity yield averaged over three winter half-years. The incentive will be available to both systems with and without on-site consumption.

For installations without on-site consumption, the bonus is structured at CHF 3.50 per kW of installed capacity for each kWh/kW of specific winter electricity surplus above the 500 kWh/kW threshold. For systems supported through a sliding market premium, this amount will be distributed across a 20-year compensation period, resulting in an annual payment of CHF 0.175 per kW, multiplied by the installation’s winter electricity surplus.

This new mechanism replaces Switzerland’s altitude bonus for photovoltaics, which has been in force since 2023. The previous incentive targeted solar systems located at least 1,500 meters above sea level that produced a minimum of 500 kWh/kW annually during the winter half-year, covering up to 60% of eligible investment costs for qualified projects.

Aligning with Broader Renewable Energy Goals

The implementation of the winter electricity bonus has been aligned with updating the interim target of Switzerland in respect to the previous target for the production of renewable energy, particularly in the area of photovoltaic energy. The target of reaching 23 TWh of electricity generated from renewables by 2030 has now been approved by the Federal Council and the target of reaching specifically 18.7 TWh of photovoltaic generated electricity has also been set.

These targets support the Federal Act on a Secure Electricity Supply Based on Renewable Energy Sources, which aims for a long-term strategy based on the interim target of 35 TWh of renewable energy (excluding hydropower) being produced by 2035 and the interim target of 45 TWh of renewable energy being produced by 2050.

The time frame for this initiative is reflecting the urgent need of Switzerland to overcome the winter electricity shortage problem and at the same time speed up the country’s progress towards its climate goals and energy goals. In addition to this, a new report from the National Survey Report of PV Power Applications in Switzerland is demonstrating the increasing importance of solar energy as part of the energy mix in Switzerland. In total, by the end of 2024, photovoltaic systems had produced a total of 5.96 TWh of electricity in Switzerland, contributing to 10.36% of total electricity consumption in Switzerland during that year.

The report further indicated that a total of 8.17 GW of cumulative solar capacity had been installed in Switzerland by the end of 2024, with 1,799 MW having been installed in 2024 alone.

Industry Response and Future Outlook

Energy experts have largely welcomed the new winter electricity bonus as a more sophisticated approach to incentivizing solar production where it’s needed most. “The performance-based model creates smarter incentives than previous systems,” noted a solar industry analyst familiar with the policy. “By specifically rewarding winter generation, Switzerland is channeling investment into projects that genuinely address the seasonal supply gap.”

The transition from the altitude bonus to the winter electricity bonus also reflects lessons learned from previous incentive structures. While the altitude bonus successfully encouraged high-altitude solar development, the new approach focuses specifically on yield outcomes rather than geographic location alone.

Switzerland is continuing its “solar offensive” in conjunction with implementing several complimentary policies to help speed up the expansion of photovoltaics within the country. Two specific measures that will help promote large-scale photovoltaic facilities in Switzerland are more simplified processes for receiving approvals on large-scale photovoltaic facilities and rebates for up to 60% of the cost associated with installation to qualifying projects.

As Switzerland strives to meet its ambitious goals for increasing renewable energy production, winter electricity bonuses form an important aspect of the nation’s energy security strategy as Switzerland transitions to a cleaner method of producing electricity. With solar energy accounting for more than 10% of electricity consumed in Switzerland at present, this targeted incentive is anticipated to enhance the growth potential of the solar sector in addition to supporting Switzerland’s need to reduce domestic electricity shortages during periods of high winter usage.