Zurich, Switzerland – In a bold move to bolster its energy security and accelerate its clean energy transition, the Swiss Federal Council has announced a comprehensive new policy package designed to dramatically expand solar photovoltaic (PV) generation, with a particular focus on the critical winter months. The centrepiece of the strategy is a pioneering "Winter Electricity Prize" incentive scheme, coupled with a significant upward revision of the national PV expansion target to 18.7 terawatt-hours (TWh) annually by 2030.
Today, the federal government (the Federal Department of the Environment, Transport, Energy and Communications - DETEC) announced the decision to implement a new incentive that addresses two of Switzerland's greatest challenges: phasing out nuclear power over the long term, and a heightened vulnerability during winter for energy shortages. Historically, Switzerland has relied heavily on hydropower and nuclear energy; however, due to seasonal variations in hydropower generation capacity (which tend to be much lower during winter), and a growing volume of electricity being imported from fossil fuel sources, there has been an increasing need for energy to be imported. Consequently, the new policy is directly addressing many of the lessons learned by recent European countries during their energy crisis, and aims to help Switzerland develop a more resilient, sustainable and renewable electrical grid.
The "Winter Electricity Prize": Targeting the Seasonal Gap
The innovative "Winter Electricity Prize" is a subsidy mechanism tailored to reward electricity generation specifically during the winter semester (October to March). This period is when Switzerland's energy deficit is most acute. Under the scheme, PV system owners will receive a premium tariff for every kilowatt-hour of solar electricity fed into the grid in these months. The premium is designed to be financially attractive, overcoming the economic hurdle that has traditionally made large-scale, alpine PV projects-which excel in winter due to higher altitude and snow reflection-challenging to finance.
"This is a market-based instrument with a clear seasonal signal," explained a senior DETEC official. "We are not just incentivizing more solar power; we are strategically incentivizing the right kind of solar power, at the right time. The goal is to make investments in high-altitude solar plants and optimized rooftop installations not just ecologically sensible, but economically compelling."
Ambitious Targets: From 5.4 TWh to 18.7 TWh by 2030
With the introduction of the new incentive, the Swiss Federal Government has now officially announced an increase in the National Goal for Solar Energy Generation. The Energy Strategy 2050 outlined a national solar energy generation target of 18.7 TWh per year for the Year 2030 (nearly 3 times the 5.4 TWh annual production in 2023) and reinforces the priority the Swiss Federal Government is placing on expediting the installation of Solar and Solar Operations.
To provide some context for this effort, the 18.7 TWh of Solar Energy has the the potential to provide electricity for more than 4 million Swiss households annually. In addition, the 18.7 TWh will close a majority of the expected Electricity Gap. Furthermore, this Goal aligns with the Improved NDC of Switzerland under the Paris Agreement, and Switzerland's goal of achieving net-zero GHG emissions by 2050.
A Multi-Pronged Implementation Strategy
Achieving this accelerated target will require action on multiple fronts. The federal government plans to:
Streamline Permitting: Cantonal and municipal authorities will be urged to accelerate planning and approval processes for PV installations, particularly for large-scale systems on alpine infrastructure, building façades, and parking lots.
Unlock Rooftop Potential: A renewed push for rooftop solar on commercial, industrial, and residential buildings will continue, with the Winter Prize providing an extra boost for installations oriented for winter sun.
Promote Alpine Solar: The potential of high-alpine regions is now a strategic priority. Pilot projects, such as the recently expanded plant at the Albigna Dam in Graubünden, have demonstrated exceptionally high winter yields. The new premium makes such projects financially viable.
Encourage Self-Consumption and Storage: Policies will continue to support the coupling of PV with battery storage systems, allowing consumers to store surplus summer production for use in winter, thereby increasing autarky and grid relief.
Industry and Environmental Reaction
The Swiss solar industry association, Swissolar, hailed the announcement as a "watershed moment." "The Winter Electricity Prize finally values the true contribution of solar to winter security," said the association's president. "This provides the planning certainty needed for massive investments in our solar infrastructure. We are ready to deliver."
Environmental groups like WWF Switzerland have welcomed this proposal although they have also been cautious, stressing that there needs to be concerted action to reduce demand for all types of energy consumption, as well as establishing rigorous ecological criteria with respect to installations in alpine areas to ensure that fragile, high-altitude environments are safeguarded.
A Model for Mountainous Regions?
The innovative approach of Switzerland's winter-based incentive model is being closely studied by other alpine countries experiencing similar difficulties with meeting seasonal demand for winter energy (Austria, Italy, U.S., Japan). If implemented successfully, it may serve as a model for other countries to encourage the economic use of alpine regions, not only for tourism purposes, but also as an important component of their overall energy security.
The Federal Council will soon be forwarding these legislative changes to Parliament, and the initial payments for the "Winter Electricity Prize" will be distributed during the winter 2025/2026 season.
