Switzerland

Switzerland has a fairly complex FiT system whereby there is a different rate for each type of system, such as roof-top, ground-based and BIPV as well as having a different rate for each size of system, ranging from up to 10kW to 100kW+. The program is capped at 0.006% of electricity sales, with solar capped at 5% of that.

One of Switzerland's main renewable energy goals is to increase the proportion of electricity produced from sources such as PV to 30% of the total energy in the country by the year 2030.

With the introduction of remuneration at cost for input into the grid, one of the goals of Switzerland's energy policy is to increase the proportion of electricity produced from renewable energy by 5,400GWh, or 10% of the country's present-day electricity consumption, by 2030.

Back in 2007 approximately 55% of Switzerland's overall electricity production came from renewable sources, with hydropower as by far the biggest contributor with a 96% share of the market.

380 electricity supply companies now offer certified electricity products from renewable energy, which meet 4.5% of Switzerland's electricity demand.

With the revision of the Federal Energy Act, the Federal Electricity Supply Act also contains a package of regulations governing the promotion of renewable energy and the introduction of measures to promote efficient electricity use. The most important measure concerns the remuneration of feeding in renewable energy at cost. Each year around 320 million Swiss francs is to be earmarked for the new promotion measures called for in the Federal Energy Act.

Also in 2007, the Swiss Parliament, creating the legal basis for a competitive electricity market and the preconditions for guaranteeing energy security in Switzerland, passed the Electricity Supply Act (ESA). The act introduces an independent regulator and an independent TSO, regulated third party access, freedom to choose a supplier for eligible customers (during a 5-year transition phase) and unbundling at the accounting level.

The act also provides for FiTs to support generation of 5.4TWh by 2030 from renewable energy sources, including up to 2TWh from large hydro and the remainder from wind, biomass, small hydro, solar and geo-power. Up to 10% of this target must be sourced from abroad.

The FiT is financed through a grid levy, which is capped at €0.40/kWh; thus overall FiTs will not exceed €211million per year. Allocation of FiTs for each technology is limited, so as to prevent expensive technologies to drain an over-proportionate share of tariffs; technology-specific allocations increase as costs decrease.

Solar photovoltaic energy in Switzerland, although slow advancing fairly slowly at present, is set for a very successful future. The long-term potentials of domestic renewable energy indicate that, for all forms, the prospects for electricity and heat are very promising.

The International Energy Agency (IEA) has predicted that although a future success, PV technology's potential will not be fully utilized in the Switzerland for approximately 30 years.