Switzerland mulls tax change to incentivise solar deployment

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Switzerland is hoping to ramp up the amount of solar and wind in its energy mix. Image: Unsplash

Switzerland’s government has launched a consultation on a raft of policies to support renewable energy, including increasing tax incentives for PV projects and streamlining application processes in a bid to “accelerate the development of solar energy production”.

The Swiss Federal Council said on Thursday (3 February) that it wanted to exploit the potential of residential and commercial solar. To do so, “an incentive must additionally be created by the possibility of also deducting investments in solar installations from taxes on new constructions,” said the council.

Presently, only costs for renovations are deductible and not those relating to new construction. 

The council is also planning to simplify the process for obtaining a solar installation permit for building facades.

The deadline for responding to the consultation launched today by the Federal Council runs until 23 May 2022.

Switzerland, which has an average energy consumption higher than France and Germany, gets most of its electricity from hydropower (59.9%), nuclear power (33.5%) and conventional thermal power plants (2.3%).

It will need to expand its solar and wind assets in the coming years if it is to hit its net zero by 2050 target. It already has 638 hydroelectric plants across the country, with it becoming a less viable option.

15 June 2022
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