Feed-in Tariffs for Solar Power Starting at 150 kWp: What’s Changing in 2027—and Why Every Kilowatt-Hour of Self-Consumption Counts Now

The Federal Council’s decision of May 27, 2026, to revise the Energy Ordinance (EnV) will fundamentally overhaul the remuneration system for solar power in Switzerland. Starting January 1, 2027 —with a one-year transition period until early 2028—the feed-in tariff will no longer be based on the quarterly reference market price, but directly on the hourly spot market price at the time of feed-in. For operators of commercial PV systems of 150 kWp or more, this represents a paradigm shift with significant economic consequences—since the statutory minimum feed-in tariff, intended to protect investments, explicitly does not apply in this capacity class.

Here are the specific changes starting in 2027

An overview of the key points of the new regulation:

• Hourly spot market price instead of quarterly average: The new benchmark is the EPEX Day-Ahead price for Switzerland during the respective feed-in hour. Solar power fed into the grid at midday, when the share of PV generation is high, is therefore remunerated at a significantly lower rate than electricity generated during the morning and evening hours.
• Effective January 1, 2027, with a one-year transition period—the final transition will therefore take place by early 2028 at the latest.
• Minimum feed-in tariff only for systems under 150 kW: Smaller systems will continue to receive investment protection. If the quarterly reference market price falls below the legally defined minimum remuneration (e.g., 6 Rp/kWh for systems up to 30 kW, decreasing to 1.2 Rp/kWh for 149 kW), the difference per kilowatt-hour fed into the grid is subsequently compensated.
• No minimum remuneration for systems of 150 kWp or more: Systems in this capacity class are fully subject to spot market prices—including periods when electricity prices are very low or even negative.
• Distribution system operators may continue to pay higher rates —Swissolar expects that many utilities will do so voluntarily, though on a contractual basis without a legal entitlement.

Why the 150-kWp threshold is crucial

The 150 kWp threshold was not chosen at random. It marks the dividing line between typical rooftop systems on residential buildings and small businesses on the one hand, and commercial and industrial PV systems on the other. Under the new compensation model, this threshold becomes a critical economic breaking point: anyone who designs a system that slightly exceeds this limit forfeits government investment protection and bears the full market price risk.

This is precisely where a new dilemma arises for investors and operators of commercial solar power plants: While maximizing module coverage on the roof increases absolute output, it also exposes the plant to greater spot market risk. The right plant configuration is therefore no longer just a matter of roof area, but a strategic decision between maximizing output and ensuring regulatory compliance.

What this means economically

Direct coupling to the spot market has the greatest impact where solar power is currently generated most heavily: at midday on sunny days. During these hours, high volumes of PV feed-in regularly push the spot price down to just a few centimes—and on peak days, even into negative territory. Initial analyses of EPEX data for Switzerland in 2024/2025 show that on sunny summer days, midday prices sometimes fall below 2 Rp/kWh, while evening prices climb to 15–25 Rp/kWh.

For a typical commercial PV system with a capacity of 250 kWp and a self-consumption rate of 30%, this means, compared to the current quarterly model:

• Today (as of 2026): Revenue from the 175 MWh fed into the grid at the quarterly reference market price of, for example, 6 Rp/kWh = approximately 10,000 CHF in feed-in revenue per year.
• Starting in 2027/2028: Payment at the hourly spot price. With a realistic, weighted average payment of 4–6 Rp/kWh (PV generates power precisely during the hours when prices are lowest), feed-in revenue will drop to 7,000–10,000 CHF —a decline of 25–50%.

In the energy industry, this is referred to asthe “cannibalization effect”of photovoltaics: The more PV capacity is feeding into the grid at the same time, the more it depresses its own market value. In Switzerland, this effect is becoming more noticeable with every additional gigawatt of installed capacity.

The Next Step: From Power Generator to Energy Conductor

The regulatory shift makes one thing crystal clear: anyone investing in a PV system of 150 kWp or more can no longer rely on a stable feed-in tariff. In the future, profitability will come from situations where the electricity generated is not fed into the grid at the lowest daily price, but is instead used locally, stored, or time-shifted. Three key factors are coming to the fore:

1. Optimization of self-consumption

Every kilowatt-hour used for personal consumption is no longer valuable only for the difference between the purchase price and the feed-in tariff—but for the full purchase price, compared to a feed-in revenue that is sometimes marginal. With a typical commercial electricity rate of 18–28 Rp/kWh and a midday feed-in tariff of 2–5 Rp/kWh, every kWh consumed on-site becomes five to ten times more valuable than the electricity fed into the grid. Load shifting, smart control of heat pumps, cooling, and compressed air systems, as well as the planned charging of electric vehicle fleets, thus become key levers for value creation.

2. Battery storage

Direct spot market coupling fundamentally enhances the economic rationale for battery storage. Instead of feeding electricity into the grid at 3 Rp/kWh at noon, the electricity can be shifted to the evening hours and either used by the owner or fed back into the grid. Arbitrage between low daytime prices and high evening prices becomes a measurable business model—further strengthened by the possibility, effective January 1, 2026, to apply for a refund of the grid access fee for storage systems used for end consumption (Art. 18d StromVV). Storage systems not used for end consumption have been exempt from the grid access fee since 2025 anyway.

3. Local Electricity Communities (LEG) and ZEV/vZEV

Since early 2026, the revised Electricity Supply Act (StromVG Art. 17d et seq.) has permitted the formation of local electricity communities within the same municipality and grid level. Locally consumed electricity benefits from a 40% discount on the grid usage fee (20% when using the transmission grid level). Combined with self-consumption pools (ZEV) and their virtual counterpart (vZEV), this creates an economically attractive model for industrial parks, mixed-use sites, and other areas to monetize solar power directly at the point of generation —rather than exposing it to spot market volatility.

What operators should do now

Anyone planning, expanding, or already operating a PV system with a capacity of 150 kWp or more should reassess four key aspects in light of the new regulation:

• Update the profitability analysis: Existing business cases are usually based on constant feed-in tariffs. It is essential to recalculate them using hourly spot price profiles.
• Self-consumption rate as a key metric: Even increasing the self-consumption rate from 30% to 50% can boost annual revenue by 10,000–20,000 CHF (for a 250-kWp system). Investments in energy management, load shifting, and battery storage thus pay off much faster.
• Take a holistic view of storage and load flexibility: Battery storage, electric vehicle fleets, heat pumps, and refrigeration systems should be planned as an integrated system—not as individual components
• Review LEG/ZEV Options: An early analysis of local marketing opportunities is particularly worthwhile for industrial sites, commercial zones, and mixed-use properties

Conclusion: From a simple power generator to an active energy manager

The revision of the ordinance on May 27, 2026, is more than just a technical adjustment. It marks the end of the predictable feed-in tariff for commercial and industrial PV systems in Switzerland and poses a question for operators: What role does the system play—that of a passive electricity seller or an active energy manager? Those who embrace the second role—with optimized self-consumption, smart use of storage, and local marketing—will continue to operate economically successful systems under the new model. Those who stick to the old way of thinking will face a sobering reality in their first quarterly bills starting in 2027.

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