With the Electricity Act (in force since 2025), there is a new funding path for large photovoltaic systems: operators can choose between a high one-off feed-in incentive (EIV) and the sliding market premium, the amount of which is determined via auctions. With the market premium – from an installed capacity of 150 kW – a minimum remuneration is guaranteed over 20 years; the fed-in electricity is sold on the market, the difference is compensated by a fund. For a normal single-family home this is not relevant – the one-off feed-in incentive (EIV) still applies there. (as of: July 2026)
Key points in brief
- The Electricity Act brought a new funding path for large PV systems in 2025: the sliding market premium, determined via auctions.
- The sliding market premium is available from around 150 kW installed capacity – a business and large system topic.
- In the auction, the lowest bids win; a bid is an amount in Rp./kWh for 20 years.
- Alternatively, the (high) one-off feed-in incentive (EIV) remains for many systems, also determined via auctions.
- Nothing changes for single-family home systems – the normal one-off feed-in incentive (EIV) applies there.
What has changed with the Electricity Act?
The Electricity Act, accepted by the voters in June 2024 and in force since 2025, has remodelled the incentives for large systems. Alongside the familiar one-off feed-in incentive – a one-off investment contribution, explained in the article One-off feed-in incentive explained – there is now the sliding market premium (GMP). Instead of a one-off grant, it ensures an ongoing minimum remuneration for the electricity produced over 20 years.
The decisive mechanism behind this: The level of incentives is no longer set by the authorities, but is determined via auctions. Interested parties bid, and whoever requires the lowest incentive wins. This pushes down the incentive costs and directs the funds to the most economic projects.
How does the sliding market premium work?
The GMP is open to systems from an installed capacity of around 150 kW – this is clearly a business and large system size range. The principle:
- The operator sells the fed-in electricity on the market.
- If the market revenue is below the rate guaranteed in the auction, a federal fund makes up the difference.
- If the market revenue is above it, the operator must refund the surplus.
This creates a predictable lower limit over 20 years without the state guaranteeing a fixed price. The underlying market price is the same one that small systems also see for feed-in – the reference market price, explained in the article Reference market price. The lower limit for small systems, in turn, is covered in the article Minimum feed-in remuneration.
How do the auctions work?
In the auction, each bidder specifies a rate in Rp./kWh at which they want to claim the market premium over 20 years. The lowest bids win until the tendered volume is covered. Alternatively, there are auctions for the high one-off feed-in incentive – operators therefore choose the incentive path that suits their project. The basic terms of the one-off feed-in incentive – KLEIV and GREIV – are explained in the article KLEIV and GREIV.
In addition, there are surcharges that make certain systems more attractive. According to the current rates:
| Surcharge for | Bonus (guideline value) |
|---|---|
| Systems with a tilt over 75° (facade/steep elevation) | around 1 Rp./kWh |
| Solar car park roofs | around 2.2 Rp./kWh |
| High-alpine systems above 1,500 m | around 0.7 Rp./kWh |
Guideline values, as of: July 2026. The current rates and auction conditions of the SFOE and Pronovo are authoritative.
These bonuses are deliberately aimed at winter electricity: steep and high-alpine systems deliver precisely when little solar electricity is generated in the lowlands.
Is this relevant for my project?
For a single-family home: no. Small roof systems continue to run via the normal one-off feed-in incentive – the auctions and the market premium are a topic for business, agriculture and large systems from the mentioned capacity range. It becomes relevant, for example, for large business roofs, logistics halls or – in the residential sector – for very large developments. For planning a solar system for an apartment building, the article Solar system for an apartment building is a better starting point.
Anyone who owns a large roof and is thinking about marketing should include the incentive path in the profitability calculation early on – the choice between a one-off feed-in incentive and a market premium can make a noticeable difference over 20 years.
Most enquiries about the «auction» come from businesses with large hall roofs – and it is really worth a look there. However, we also experience the reverse confusion: homeowners who believe they now have to take part in an auction. We can reassure them – for the roof system on a single-family home, everything stays the same; the one-off feed-in incentive continues as usual. For large roofs, we calculate both paths: The one-off feed-in incentive brings money immediately, the market premium a predictable lower limit over 20 years. Which fits better depends on the project, the self-consumption rate and the willingness to take risks – there is no blanket answer.
Frequently asked questions
From what size is the sliding market premium relevant?
From around 150 kW installed capacity – this is a business and large system area. It is not intended for single-family homes with typically much smaller systems; the normal one-off feed-in incentive still applies there as a one-off investment contribution.
What is the difference between the one-off feed-in incentive and the market premium?
The one-off feed-in incentive is a one-off grant towards the investment costs. The sliding market premium is an ongoing safeguard over 20 years: The electricity is sold on the market, and a fund makes up the difference to a guaranteed rate. Large systems can choose between the two paths – both are determined via auctions.
Do I have to take part in an auction as a homeowner?
No. The auctions affect large systems. For a roof system on a single-family home, you apply for the one-off feed-in incentive via Pronovo as before – without an auction. The new auction mechanism changes nothing in the process for small systems.
What bonuses are there for large systems?
According to the current rates, there are surcharges for steep systems with a tilt over 75°, for solar car park roofs and for high-alpine systems above 1,500 m. These bonuses specifically promote winter electricity production. The current rates and auction conditions of the SFOE are authoritative.
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Sources: Swiss Federal Office of Energy (SFOE) on the Electricity Act and the sliding market premium, Pronovo AG, Energy Funding Ordinance (EnFV), Swissolar specialist information. As of: July 2026.
Last updated: 9 July 2026 · Author: ecoEn editorial team
