Feed-in remuneration at cost is an instrument that was developed by the federal government for the purpose of promoting electricity production from renewable energy sources. It covers the difference between the production and the market price, and guarantees producers of electricity from renewable sources (green power) a price that corresponds to their production costs. Feed-in remuneration at cost is available for the following technologies: hydropower (output up to 10 megawatts), photovoltaics, wind energy, geothermal energy, biomass and biological waste. Contributions are made to the associated fund by all electricity producers, who pay a fee per consumed kilowatt hour.

The remuneration tariffs for green power have been specified on the basis of reference power plants for each technology and output category. Depending on the technology, remuneration is applicable for 20 to 25 years. In view of the anticipated technological progress and the increasing degree of market maturity of new technologies, the remuneration rates are subject to a gradual downward curve. The reductions only apply to new production facilities that are put into operation.

New facilities can be registered with the national network operator, Swissgrid. At present there is a waiting list for the registration of new production facilities. Information about the registration procedure can be found on the Swissgrid website.