If you spread the investment and operating costs over the entire electricity production across the system's lifetime, the self-produced kilowatt-hour costs, as a guideline value, roughly 8 to 15 Rappen for well-planned single-family home systems – significantly less than grid electricity, which costs 25 to 35 Rp./kWh depending on the municipality. The exact value depends on the investment, roof situation and lifetime. (As of: July 2026)
Key points in brief
- Levelised cost answers the simplest of all questions: what does my own kilowatt-hour cost me?
- The calculation is a division: all costs over the lifetime, divided by the total electricity production.
- Unlike payback or return calculations, it doesn't need forecasts of electricity prices and tariffs.
- The gap to the grid electricity price is the real economic core of every solar system.
- All figures are guideline values – the calculation with your quote and your roof is binding.
What is the levelised cost?
The levelised cost is the cost price of your solar power: all the costs of the system over its lifetime, spread over every kilowatt-hour it produces in that time. The term comes from the energy industry – power plant operators have always calculated this way, and the same logic works for your roof.
The charm of this figure: it's honest, because it needs almost no assumptions about the future. Whether electricity prices rise or fall, what your utility pays for the surplus, how your self-consumption rate develops – none of it matters. The levelised cost only describes the production side. Only in a second step do you compare it with what electricity from the grid costs.
How is the levelised cost calculated?
The formula: (net investment + operating costs over the lifetime) ÷ total production in kWh. An example calculation for a typical 10 kWp system shows the order of magnitude:
| Item | Guideline |
|---|---|
| Turnkey system | CHF 20,000–27,000 |
| One-off feed-in incentive (KLEIV, approx.) | − CHF 3,600 |
| Net investment | CHF 16,400–23,400 |
| Annual production (region, depending on situation) | around 9,500–11,000 kWh |
| Production over 25–30 years (incl. age-related performance loss) | roughly 230,000–320,000 kWh |
| Levelised cost excl. operating costs | roughly 5–10 Rp./kWh |
| incl. operating costs (meter, inverter replacement, reserves) | roughly 8–15 Rp./kWh |
Guideline values, as of: July 2026, rounded example calculation – without obligation; the tax deduction is not included and would improve the result further. The calculation with the figures from your quote is binding.
The building blocks behind this are described in detail elsewhere: the investment guideline values, the yield per kWp in the region, and the ongoing maintenance costs, where the one-off inverter replacement is the largest single item.
Why is this figure more revealing than the payback period?
Because it allows an apples-to-apples comparison. Grid electricity typically costs between around 25 and 35 Rp./kWh depending on the municipality – your own production, as derived, lies significantly below that. This gap is the economic core of the whole system: every kilowatt-hour that you consume yourself instead of buying realises exactly this difference.
Payback and return calculations, by contrast, need assumptions about future tariffs and your consumption profile – useful, but softer. The levelised cost simply says: at this price, you produce. As long as this price is clearly below your grid purchase tariff, the detailed calculation can hardly tip the overall picture anymore. How payback and return build on this is shown in the respective guides.
What influences the levelised cost the most?
The investment per kWp. It's in the numerator and has a direct effect. Small systems are more expensive per kWp because scaffolding and fixed costs are spread less well – that's why fully utilising the roof almost always pushes the levelised cost down.
The yield of the location. Orientation, tilt and shading determine the denominator. An unshaded roof in a good location produces noticeably more over the decades – at identical costs.
The lifetime. Modules are designed for 25 to 30 years and more; every additional year of operation keeps producing almost for free and lowers the average price. Solid installation and regularly checking on the system are therefore also the best care economically.
What's notable is what's not on the list: the feed-in tariff. It affects what the surplus brings in – it changes nothing about the cost of your production.
Does the calculation also apply to stored electricity?
Yes, but with a surcharge. A storage battery incurs its own investment and lifetime costs, but doesn't produce a single kilowatt-hour – it only shifts it. The kilowatt-hour that comes out of the battery in the evening therefore carries the levelised cost of production plus the storage costs. In many cases it therefore still stays below the grid price, but the gap shrinks. Whether this pays off in an individual case depends on the consumption profile – the assessment: Is a battery storage system worthwhile?
When we derive the levelised cost in consultations, the discussion often flips. Before, everything revolves around the feed-in tariff – «it's so low, is this even worth it?». Afterwards, the right question is on the table: why keep buying every kilowatt-hour at the full grid price when your own roof produces it for a fraction of that? The division on the notepad regularly convinces more than any glossy forecast.
Frequently asked questions
Why does the range vary so much?
Because both the numerator and denominator vary: investments differ by roof and equipment, yields by location. A cheaply built, unshaded south-facing roof lands at the lower end, a small system on a complex roof at the upper end.
Is the levelised cost constant over the years?
The calculation spreads all costs evenly – in reality you pay most of it upfront. After payback, the system keeps producing at the pure operating-cost price, i.e. for a few Rappen.
How does the tax deduction factor in?
It reduces the net investment and thus the levelised cost further – to varying degrees depending on canton and income. It's deliberately not included in the example calculation; details in the article Tax deduction.
Can grid electricity ever be cheaper than your own production?
For well-planned systems, the gap is large enough that even significant price cuts wouldn't close it. It can get tight with very expensive tiny systems on difficult roofs – one of the cases where we calculate honestly and sometimes advise against it.
Does the industry calculate uniformly?
The principle, yes – the assumptions, no. Only compare levelised-cost figures if lifetime, operating costs and incentives are treated the same way – otherwise you're comparing assumptions, not systems.
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Swissolar-certified specialist company · ESTI installation authorisation (Art. 14 NIV) · in Zurich since 2017 · over 150 systems completed · a personal answer from the specialist company, no call centre
Sources: Swiss Federal Office of Energy SFOE, EnergieSchweiz, ElCom (electricity price overview), Pronovo.
Last updated: 9 July 2026 · Author: ecoEn editorial team
