Solar energy City of St. Gallen cuts subsidies for photovoltaic systems

In the city of St. Gallen, subsidies for the installation of photovoltaic systems are being halved or cut completely. The reason given: The systems are now economical with a service life of 25 years.

Demand for photovoltaic systems has risen massively in recent years, primarily due to high electricity prices, "but also because of the attractive subsidies", the city of St. Gallen announced on Thursday.

In 2021, the subsidies still amounted to CHF 450,000. In 2023 it was 1.4 million francs. By the end of 2023, 380 systems had been subsidized with a total of 2.7 million francs.

In the first quarter of the current year, another 600,000 francs have already been paid out. Extrapolated for the year as a whole, the city expects contributions of CHF 2 million.

Costs are amortized

The amortization period for photovoltaic systems is 10 and 15 years at today's electricity prices, with the return delivery tariffs and with the federal subsidy, according to the press release. Such systems are economical with a service life of 25 years.

The subsidy amount will therefore be reduced by half by 2025. For systems that are only planned for self-consumption and therefore do not use the entire roof area, the subsidy will even be canceled altogether.

As a transitional solution, systems for which a construction project is submitted by the end of 2024 - but which have not yet been installed - will still be supported. Previously, subsidies were only paid out once the systems were in operation.