Switzerland sets the stage for local energy communities

19 February 2025 marked a milestone for Switzerland’s energy future: the Federal Council adopted the second package of ordinances to implement the Electricity Supply Act — bringing long-awaited clarity for local electricity communities (LEGs) and flexible network tariffs.

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For us at exnaton, this moment feels particularly special. Back in 2017, long before the legal framework existed, we founded Switzerland’s first energy community — then known as a local electricity market. Eight years later, it’s exciting to see that the vision we helped pioneer is now officially embedded in national regulation.

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A clear framework for local energy communities

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The new ordinances define the legal and technical foundation for decentralized, citizen-driven energy systems — paving the way for broader participation in the energy transition.
Several aspects stand out as particularly promising:

• ‍Smart meter installation obligation
  Within three months, smart meters must be installed — establishing a key prerequisite for creating LEGs and enabling real-time energy transparency.‍
• Reduced grid usage tariffs
  Members of local energy communities will benefit from a 20–40% reduction in grid fees — even better than the initially proposed 15–30%. This incentive makes participation in LEGs economically attractive.‍
• Simplified participation requirements
  The minimum generation capacity required to join an LEG has been lowered from 20% to just 5% of the connection capacity, removing major entry barriers and opening the door to large-scale implementation.‍
• Flexible network tariffs
  Dynamic, time-based tariffs will now encourage consumers to adjust their energy use according to grid capacity — helping to balance the system and reduce peak loads.

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All of these measures will come into effect on January 1, 2026, marking a significant step toward a more efficient, participatory, and resilient energy system.

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What this means for Switzerland’s energy landscape

With these regulations, Switzerland sends a strong signal: The future of energy is local, digital, and flexible.

Local electricity communities (LEGs) enable households, businesses, and producers to share renewable energy within neighborhoods or municipalities via the public grid — turning consumers into active participants of the energy transition.

The introduction of smart meters, dynamic tariffs, and reduced network costs creates an environment where innovation can thrive and where new business models can emerge — all in line with the country’s sustainability goals.

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exnaton: ready to lead the way

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As a Swiss pioneer in energy community technology, we’re thrilled to see these developments take shape.

With our software for billing and visualization of energy communities and dynamic tariff management, we already support over 50 utilities across Europe and Switzerland. Together with enersuisse AG, we’re working full speed to ensure readiness for January 1, 2026 💪🏼

The Federal Council’s decision represents more than just a regulatory milestone — it’s the beginning of a new chapter for Switzerland’s decentralized energy transition.‍

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Our conclusion

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After years of groundwork, the path is finally clear. The framework is in place, the technology is ready, and the motivation is high.

Now, it’s up to all of us — policymakers, utilities, innovators, and citizens — to unlock the full potential of local energy communities and flexible tariffs.

At exnaton, we’re proud to contribute to this transformation. The future of energy is collaborative, digital, and powered by the sun.

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Ready to lead energy transition? Contact us to explore the possibilities.