Feed-in tariff
vs local trading.
The numbers aren't close.

Solar panels on Swiss rooftops have been generating electricity for decades. Most of that electricity — the portion not consumed directly in the building — flows into the grid at whatever rate the utility decides to pay. Until 2026, producers had almost no leverage over this price.

The Lokale Elektrizitätsgemeinschaft (LEG) changes the dynamic. For the first time, small and medium solar producers in Switzerland can sell excess production directly to nearby consumers at a negotiated rate — without a utility acting as intermediary and taking the spread. This article explains why that matters financially, and how to quantify the difference for your specific installation.

How the 2026 feed-in tariff works

The Swiss feed-in tariff changed significantly in 2026. Previously, producers received the Kostendeckende Einspeisevergütung (KEV) — a fixed subsidised rate. From 2026, all operators must pay a minimum compensation based on the quarterly reference market price, published by the Federal Office of Energy (SFOE).

The reference market price reflects the day-ahead electricity price on EPEX Spot. In Q1 2026, this sat at approximately 6.8 Rp./kWh. This is the floor — operators can pay more if they choose to, but many pay exactly the floor. It fluctuates quarterly.

For a producer with a 30 kWp installation in Zurich (typical yield ~950 kWh/kWp, self-consumption ~30%), that means around 20,000 kWh of surplus electricity per year, sold at ~6.8 Rp. = CHF 1,360/year in feed-in revenue.

How local community trading works instead

In a LEG (Lokale Elektrizitätsgemeinschaft), your surplus electricity doesn't go to the grid. It gets matched by the community platform — in Upgrid's case — to consumers within the same distribution network operator's area. Those consumers are paying their local utility approximately 27–30 Rp./kWh for grid electricity. You and the consumer split the value that would otherwise go to the utility.

In practice, Upgrid's model works as follows: surplus solar is allocated to community members at a rate below the local grid tariff. After Upgrid's platform fee (0.02 CHF/kWh), producers receive approximately 12–15 Rp./kWh for community-matched electricity — compared to 6.8 Rp. for feed-in. The remainder of surplus (anything not matched to consumers in real time) still goes to the grid at the feed-in rate.

A realistic split for an active community: 60% of surplus distributed locally, 40% fed into the grid. The same 20,000 kWh annual surplus now generates: 12,000 kWh × 12 Rp. + 8,000 kWh × 6.8 Rp. = CHF 1,440 + CHF 544 = CHF 1,984/year. Compared with CHF 1,360 for pure feed-in. The annual benefit is over CHF 600 — and that's for a 30 kWp installation.

The full comparison: Feed-in vs. LEG

The payback effect

The most financially significant consequence of the feed-in vs. LEG gap affects your installation's payback time. A typical residential Swiss solar installation of 20–30 kWp costs CHF 30,000– 50,000 after subsidies. The internal rate of return on that investment depends heavily on what you earn from surplus electricity.

With pure feed-in at 6.8 Rp./kWh, the surplus income component (separate from electricity self-consumption savings) contributes modestly to the ROI calculation. With LEG pricing at 12–15 Rp./kWh for the community-matched portion, that contribution roughly doubles. Combined with the electricity savings from self-consumption, a well-positioned LEG producer can realistically shorten payback from 15–18 years to 11–14 years on the same installation.

What about larger installations?

The comparison scales with installation size. A commercial rooftop installation of 200 kWp in an urban area — a common configuration for apartment buildings, warehouses or commercial properties — with 70% surplus and 60% community coverage generates around 133,000 kWh of surplus annually. With pure feed-in: ~CHF 9,000/year. With LEG community trading: around CHF 14,500/year — an annual benefit of CHF 5,500. Over 20 years: CHF 110,000 in additional revenue from the same installation.

For larger installations, the Upgrid platform fee of 0.02 CHF/kWh is proportionally the same but represents a larger absolute amount — around CHF 1,600/year for a 200 kWp installation. The net benefit after fees remains substantial.

Frequently asked questions

Do I need to cancel my feed-in contract to join Upgrid?

No. Your existing feed-in agreement with your grid operator remains in place for any surplus that isn't allocated to the community. Upgrid works on top of your current setup — community-allocated electricity is first directed to local consumers, and the rest continues to flow to the grid at the standard feed-in rate. You don't need to notify your operator; Upgrid handles the LEG registration process.

What happens if the community doesn't consume all my surplus?

Community allocation happens in real time. In periods when community demand is lower than your production — typically at summer midday peaks or during low consumption — the unallocated surplus flows to the grid at the standard feed-in rate. That's expected behaviour, not a gap. Well-matched communities typically absorb 50–70% of total surplus; the rest earns feed-in revenue as before. The Upgrid dashboard shows your split in real time.

Is the LEG community rate guaranteed, or can it change?

Your community rate is set in a contract between you and Upgrid for the term of your agreement. It's not subject to quarterly SFOE fluctuations the way the feed-in tariff is. This price certainty is itself financially valuable: you can model your installation's revenue more reliably. Community rates are reviewed periodically — Upgrid publishes current rates at upgrid.ch/de/leg-pricing.