Financing solar panels: ten key questions

PV systems convert solar energy into electricity. It is impossible to give a general answer regarding the costs private individuals would incur when purchasing a PV system. The size of the system, the current cost of raw materials and the type of assembly are crucial here.

For a single-family home, experts generally recommend a system of around 50 m², which provides eight to 10 kilowatts of maximum output. The family would then have the opportunity to use 20% of the electricity produced and sell 80% to the local electricity company. Based on the situation in 2024, an investment of this kind costs around CHF 30,000. Homeowners can expect a subsidy of up to 30% of the relevant investment costs of a reference system when it is commissioned (one-off payment). However, this amount may vary depending on your place of residence and canton. It is therefore advisable to obtain several quotes from experts.

This figure includes all technical components such as the cost of inverters, assembly systems, controllers and meters.

If you want to harness the power of the sun for your home with a PV system, you first need to invest a certain amount. There are several possibilities for obtaining a PV system:

Buying a PV system

A range of options are available for financing the purchase of a PV system; for example, there are government and private subsidies. Solar power companies often offer financing options in partnership with banks, for example, solar loans, i.e. credit made available specifically for the installation of a PV system. A PV system can also be paid off in monthly installments – much like renting.

In addition to the purchase price, installation, permits and maintenance must also be factored into the costs.

Leasing a PV system

Leasing a PV system can also be advantageous. Leasing means you won’t have to make all the payments at once and can budget better. In contrast to renting, a leasing contract can be structured more individually.

Taking out a solar subscription
Another option is a so-called solar subscription. This option means you don’t have to buy or lease the PV system, but instead pay a usage fee. The advantage is that you usually only pay for the electricity you use. As with leasing, you have no ownership rights while using the system.

Due to geopolitical tensions and regulations, there may be supply bottlenecks in the area of building materials and technology. In addition, installers and companies specializing in renewable energy may be near fully booked due to the high demand. The best person to contact is a specialized installer who will supply the entire system and take care of all connections, etc. and the reporting requirements.

Different types are available on the market in all possible shapes, sizes and colors. The most affordable are standard panels, which are mounted on an existing roof as an on-roof solution. Solar panels that effectively function as the house roof and offer weather protection (in-roof installation) are more expensive. There are several well-known Swiss manufacturers that manufacture and deliver panels for almost every type of roof. Solar tiles or panels integrated into the facade are also available on the market.

For a long time, a south-facing roof was considered the ideal orientation. But experts today agree that overly broad recommendations are not helpful. First, vertically aligned solar panels, also called solar facades, are a worthwhile investment. They offer the benefit of supplying a constant amount of electricity throughout the year. Moreover, solar panels are relatively inexpensive to buy so they make sense even if a roof is not facing in the ideal direction. “Solar panels on roofs that face east and west can also be very effective,” says expert David Stickelberger. This will provide a good yield of solar energy throughout the day.

Tip: On the official website www.sonnendach.ch, you can easily check which areas of the roof of your house are suitable. Of course, the solar panels should not be heavily shaded by trees or neighboring buildings.

Yes. The service life of the panels is at least 25 years, and maintenance and other operating costs are minimal. The cost of the electricity you generate with your solar panels and your savings compared to what you pay your electricity provider will vary greatly depending on the location.

A photovoltaic system produces electricity for your own use, and remuneration is paid for any excess that is fed into the public grid. The feed-in remuneration at cost is crucial for the economic viability of your PV system – and in turn varies greatly from region to region. All major energy suppliers adjust these remuneration rates annually. In 2024, they were between CHF 0.07 and CHF 0.18 per kilowatt-hour. You also receive a bonus for the proof of origin of your electricity, which amounted to up to CHF 0.05 per kilowatt-hour in 2024. Income from feed-in remuneration has fallen more and more sharply in the period up to 2024. In October 2022, for example, it was still almost CHF 0.40 per kilowatt-hour.

There’s no way to know how prices are going to develop. It is advisable to obtain information from your energy provider about the current feed-in remuneration for the electricity generated. It could be, in the worst case, that the remuneration is so low that the PV system does not make sense economically.

An increasing number of homeowners are adding battery storage to their PV system. The technology in this area is continually improving and battery storage is becoming cheaper. Nevertheless, homeowners should expect storage costs of several thousand francs. A storage battery allows you to increase your personal consumption, i.e. how much you use of the electricity you generate yourself. Put another way, while most private households use about 30% of the energy they generate (without a battery), storage enables them to increase that to 70%. This makes sense both ecologically and economically, because those who generate electricity themselves want to use as much of it as possible.

The cost-effectiveness of a battery will improve significantly if prices for grid electricity continue to go up, because the remuneration rates that the electricity companies pay to homeowners are much lower than the price of the electricity they sell.

“Load management” is required to optimally control how electricity is generated during the day and used within the home, by the heat pump, electric vehicles, etc. This digital system optimally coordinates the individual components, including distribution to a battery storage system in the house. Smart load management can significantly improve how much of your own power you can consume. Electric vehicles now also offer bidirectional charging (the ability to charge and dispense electricity), which makes networking particularly interesting. In this way, the peaks generated during midday sunshine can be used and stored to best effect. Modern systems even consider weather forecasts and plannable household power demand.

Photovoltaic systems are promoted at the federal level with a one-time payment. For small installations with a capacity of less than 100 kilowatt-hours, you can apply for a subsidy at Pronovo after initial setup (see “The most important contacts at a glance”). As a rule, the installer attends to all the formalities. In addition, many cantons, municipalities and cities offer other funding programs. In addition, investments in renewable energy are also 100% deductible from income taxes.

Due to rising energy prices, small or mini PV systems have become popular. These “miniature power stations” usually consist of two solar modules, an inverter and cables, and prices generally start at around CHF 550. Every PV system requires an inverter to convert the current generated by the panels into direct current. According to the Federal Inspectorate for Heavy Current Installations (ESTI), the total output of a small system may not exceed 600 watts. The electricity generated is fed directly into the building’s power system. However, homeowners are advised to install a larger system if possible.

Please note: There is no public subsidy for small installations that produce less than 2 kilowatts, and installation requires the consent of the landlord or condominium association, since the balcony wall that faces outwards is not part of the rented property or exclusive usage area. In addition, any historic preservation rules should be taken into account.