Feed-in tariff
The cost-covering feed-in tariff ( FIT) is a Swiss instrument for promoting electricity production from renewable energy sources. Since 1 January 2009, producers of electricity from wind, small hydro, biomass, solar and geothermal energy will be compensated with a guaranteed fee tariff for the electricity fed into the grid, unless they are on a long waiting list because of the cap.
- 2.2.1 asset classes
- 2.2.2 compensation rates
Fundamentals and principle
The Swiss Energy Act ( EnG ) of 26 June 1998, to make the goal of the energy supply safe, efficient and environmentally friendly. From the year 2000 to 2030 the average annual generation of electricity from renewable energy sources is to be increased by at least 5,400 GWh. To promote domestic and renewable energies are to be paid by the CEC, the difference between the production cost and the current market price. This makes it economically possible to produce energy for the plant operator. The electrical energy is sold at the market price, but the plant operator pays a fee per produced amount of energy. The remuneration depends on the technology and plant size. Pay to finance the compensation the end-customers a surcharge on the electricity transmission costs in the CEC - compensation pot ( Since 2013 more than 0.9 ct. / KWh).
Remuneration
To take advantage of the promotion, to be supported technology must meet the statutory criteria. The compensation rate is calculated periodically based on the costs of a reference installation, depending on the power class and technology for new new. The reference system within a technology corresponds to the currently most efficient available technology. The effective royalty rate of a plant is determined at the time of commissioning and remains unchanged during the compensation period of 20 years.
Restriction of funding depending on type of production:
The proportion of the maximum output for a given technology and the associated potential capacity of the system is also referred to informally as a lid. This limitation has led to a waiting list of over 26,000 cases notified to the Swiss Grid systems. About 90 % of the systems on the waiting list are photovoltaic systems, of which 45% have an installed capacity of less than 10 kWp.
Because of the introduced on 1 January 2011 reduction of the remuneration tariff for electricity from photovoltaic systems and the simultaneous increase of the KEV - consumer award, it was hoped that the existing waiting list could be cut by the end of 2013. However, the production costs of new PV systems were 21.5 in August 2011 ( in November 2012) in Germany at about 18 Rp. / KWh ( 14.9 R. / KWh) for outdoor installations and 27 Rp. / KWh ( Rp / kWh. ) for small rooftop systems, well below the respective KEV - in tariffs. A price reduction below 30 Rp. / KWh would allow a funding share to 30 % for the PV by law. This could lead to more grants, if additional funding were available.
The compensation rate of a plant is dependent on the date of commissioning and does not change during the operating life of 20 to 25 years. Basically, plants from the KEV benefit that were taken after 1 January 2006, has significantly extended or renewed.
In the Annex to energy regulation ( Ordinance ) of 7 December 1998 (as of 1 March 2012) the details of the compensation rates per technology are listed and briefly described below.
Small hydropower plants
Electricity from small hydropower plants is remunerated with a basic package and bonuses ( compression and hydraulic bonus) per kilowatt hour with a maximum of 35 Rp. / KWh. The remuneration is not reduced over the amortization and payment period of 25 years.
Basic remuneration
The equivalent power is decisive. To this end, the annual energy production is divided by the annual hours.
Pressure level bonus
Hydraulic Bonus
The production costs of small hydro power plants ( for new installations and extensions / renewals ) are significantly depending on the extent of the required hydraulic engineering. This fact is taken with the hydraulic bonus account. The proportion of water engineering in total investment are relevant for the calculation of the hydraulic bonus. Falls below the proportion of hydraulic engineering of the total investment, the 20 - % level, is not entitled to the bonus. Power, the proportion of 50% and more of, is entitled to all the hydraulic Bonus between are linearly interpolated.
Photovoltaic
The amortization and payment period for photovoltaic systems is 25 years. According to Energy Regulation decrease in tariffs for new installations annually by 8%. The Department of Environment, Transport, Energy and Communications (UVEK ) reduced the remuneration for the year 2011 by 18%, because the cost of solar systems in 2010 have dropped much more than expected. The UVEK lowered the KEV tariffs for new installations as of March 1, 2012 at around 10%. Along with the regular annual cut of up to 8%, which is already on 1 January 2012, sinking the PV feed-in tariffs in 2012 by a total of 18%. As part of the Energy Strategy 2050 ( draft of the Energy Act of 28 September 2012) and the Parliamentary Initiative 12,400 is proposed a switch to a one-time compensation of up to 30 % of the investment cost (determined on the basis of reference plants ) for PV systems up to 10 kW ..
Photovoltaic systems are classified for compensation in three categories:
Investment categories
Compensation rates
1.3.2012
1.10.2012
1.1.2013
1/1/2014
* Values were initially subject bundesrätlichem decision. The amounts are given including MWSteuer of 8%. The normalized DC peak power determines the power class. For systems with > 10 kW is billed ratably over the performance classes. Depending on the anticipated technological advances and market a technology that compensation rates will be gradually reduced. The annual tariff reductions are valid for newly commissioned in the corresponding Year of plants. If a tariff for a plant once determined, the compensation rate remains constant throughout the payback period ( = duration of remuneration ).
Wind energy
For wind turbines, the amortization and payment period is 20 years. As of 2013, the compensation rates fall no more ( earlier the reduction of 1.5% per year). For the KEV wind installations in small and large wind turbines (> 10 kW) are categorized.
Geothermal systems
Geothermal plants are used for the production of electricity and heat and may not use any fossil fuels for energy production together with geothermal energy in the same plant. To make a KEV claim, the geothermal plants a minimum overall efficiency must reach to the diagram according to.
Geothermal plants are subject to amortization and payment period of 20 years. As of 2018, the compensation rates per year fall by 0.5%.
The fee is calculated according to the rated electrical output of the plant. For plants with a capacity > 5 MW, the fee is calculated pro rata on the performance classes.
Biomass production
After KEV electricity production will be paid from the following plants: Garbage ( KVA), sludge, sewage sludge incinerators, sewage gas, landfill gas and other biomass plants.
The compensation rate for the renewable share is determined for each calendar year based on the annual mean values of the heat utilization efficiency.
The compensation rate for other heat utilization rates are linearly interpolated between 15 and 65 percent. The annual reduction of the fee is 0%. The amortization period and compensation for biomass plants is 20 years.
Financing
The consumers pay a surcharge to the electricity transmission costs in the compensation pot. The money from this is used to finance the additional costs generated by the KEV. The remuneration pot and thus promoting is therefore limited. The maximum amount of the award is determined by the Federal Council. It amounts to the end of 2012 more than 0.6 ct. / KWh and is increased on 1 January 2013, a maximum of 0.9 ct. / KWh.
Completion
The collection and management of the aggregates is carried out by the Foundation to cover costs feed. The payout for the federal government is handled by Swiss Grid. This also manages the exchange of data between producers and distribution system operators and performs the waiting lists for the respective projects.