According to media reports of today, the Swiss Federal Council has introduced new regulations to manage the growing share of solar energy in the country’s electricity mix. But as solar power installations continue to expand—adding 1,800 megawatts annually since 2022—concerns over grid stability have prompted adjustments in both network management and financial incentives and the potential of Power-to-X got unnoticed, again.

Grid Overload and Temporary Disconnections

On particularly sunny days, excessive solar power generation at midday can strain the electricity grid. To prevent costly infrastructure expansion, the revised Electricity Act allows solar installations to be temporarily disconnected from the grid during peak production times. The newly approved regulations, effective from 2026, limit these disconnections to a maximum of three percent of an installation’s annual production.

For homeowners with photovoltaic (PV) systems, this measure translates to an estimated financial loss of CHF 25 per year for an average single-family home. Industry representatives largely support this step, emphasizing its role in reducing future grid costs. According to the Association of Swiss Energy Companies (VSE), without such measures, grid-related expenses could reach CHF 9 billion per year by 2050—more than double today’s costs.

Adjustments to Minimum Solar Tariffs

While industry leaders accept the grid disconnection measure, they stress the importance of stable financial incentives to ensure continued investment in solar energy. The Federal Council has revised the minimum feed-in tariff for small solar installations, increasing it from 4.6 to 6 centimes per kilowatt-hour (Rp./kWh). However, medium-sized systems (30–150 kW) remain without a guaranteed minimum tariff, raising concerns among multi-family property owners and agricultural businesses.

Critics argue that the revised tariffs are still too low, particularly for larger rooftop installations with minimal self-consumption. According to the Swiss Energy Foundation, profitability remains a challenge unless producers can use a significant portion of their generated electricity themselves.

Improved Conditions for Self-Consumption and Energy Communities

To mitigate the impact of disconnections, solar producers can maximize self-consumption, and new regulations now make this more attractive. The Federal Council has ensured that network usage fees will only be charged once, reducing costs for those who store and consume their own energy.

Additionally, the government has facilitated local energy-sharing initiatives. Electricity from solar panels can now be delivered directly to consumers within a so-called local electricity community, bypassing traditional energy suppliers. The discount on grid usage fees for these communities has been increased to 40%, potentially making collective energy sharing more appealing for tenants and businesses alike.

A Missed Opportunity for Power-to-X?

Instead of limiting solar feed-in during peak production, a more forward-thinking approach would be to expand Power-to-X (PtX) solutions. Excess electricity could be used to produce molecular energy carriers, such as hydrogen, synthetic fuels, or other chemical storage forms, ensuring that valuable renewable energy is not wasted but converted into storable, defossilized energy sources.

Investing in PtX infrastructure would help balance grid fluctuations while strengthening Switzerland’s energy independence and industrial competitiveness. Rather than enforcing disconnections, policies could incentivize the conversion of surplus electricity into forms that can be used across different sectors, including industry and transport. This would make better use of the growing solar capacity without burdening the grid.

While the recent adjustments mark a step forward, debates over tariff levels and investment security continue. The challenge remains to balance financial incentives with grid stability while ensuring that the solar sector remains an attractive investment. Supporting Power-to-X could be a key element in achieving this goal.

Source: Tages-Anzeiger