Switzerland is at the forefront of a more sustainable and decentralized energy future – and Local Energy Communities (LEGs) are playing a central role. 2025 marks the year when LEGs gain massive importance in Switzerland. But what exactly is an LEG, how does it work, and why should you consider joining one?
In this comprehensive guide, you'll learn everything you need to know about Local Energy Communities in Switzerland: from the basics to the benefits to practical implementation.
What is a Local Energy Community (LEG)?
A Local Energy Community (LEG) is a legally recognized concept that enables groups of individuals, businesses, and organizations to collectively produce, consume, and share renewable energy within a defined geographic area.
In Switzerland, LEGs are entities recognized under the Energy Act (Energiegesetz) that enable participants to:
- Collectively produce renewable energy through solar panels, wind turbines, or other sustainable sources
- Share excess energy with other community members
- Reduce energy costs through collective purchasing and local distribution
- Increase energy independence from traditional utility providers
- Contribute to environmental sustainability by promoting clean energy usage
Legal Framework in Switzerland
LEGs are legally established in Switzerland and supported by various regulations:
- Energy Act (Energiegesetz): Regulates the foundations for energy communities
- Regulations of the Federal Office of Energy (BFE): Detailed provisions for operation and billing
- Cantonal regulations: Supplementary rules at the regional level
Why are LEGs so important in 2025?
2025 marks a turning point in Swiss energy policy:
- New regulations from 2026: Expanded opportunities for rooftop solar, storage, and energy communities
- Energy Strategy 2050: Switzerland aims for net-zero emissions and phase-out of nuclear power
- Growing acceptance: More and more Swiss people are interested in renewable energy
- Technological maturity: Smart grid technology and digital platforms make LEGs easier to manage
How does an LEG work?
Basic Principles
- Local energy production: Members generate renewable energy (mostly through solar panels)
- Energy exchange: Excess energy is shared within the community
- Transparent billing: Digital platforms track production and consumption
- Collective benefits: Costs and benefits are fairly distributed
Technical Infrastructure
A modern LEG requires:
- Smart meters: Intelligent meters record consumption and production in real-time
- Digital platform: Software for management, billing, and communication
- Grid connection: Connection to the local distribution network
- Energy storage (optional): Batteries to optimize energy flow
Organizational Structure
LEGs can take various legal forms:
- Cooperative: Democratic organization with member decisions
- Association: Simple structure for smaller communities
- GmbH (Limited Company): Legally independent company
- Self-consumption community (ZEV): Special form for buildings
Key Benefits of LEG Membership
1. Financial Savings
LEG members benefit from:
- Lower electricity prices: Local renewable energy is often cheaper than grid electricity
- Reduced grid fees: Less dependence on the public grid
- Revenue from surplus: Selling excess energy to community members
- Group purchasing power: Better prices when purchasing solar panels or storage
Typical savings range between 15% and 40% of energy costs, depending on:
- Community size and efficiency
- Local energy prices
- Own energy consumption and production potential
2. Environmental Impact
By participating in an LEG, you directly contribute to:
- Reduced CO2 emissions: Renewable energy instead of fossil fuels
- Local environmental responsibility: Commitment to your own region
- Energy transition: Support for Switzerland's Energy Strategy 2050
- Circular economy: Resources remain in the local community
An average LEG can save 10-50 tons of CO2 annually, depending on its size.
3. Energy Independence
LEGs provide:
- Greater control: You decide about your energy source
- Reduced vulnerability: Less dependent on electricity market price fluctuations
- Local resilience: Greater resistance to power outages
- Long-term planning: Stable energy prices for years
4. Community Engagement
Joining an LEG means:
- Connection with like-minded people: Collaboration with sustainability-oriented neighbors
- Local initiatives: Participation in regional sustainability projects
- Stronger community relationships: Shared decisions about energy
- Education: Learning about renewable energy and sustainability
Types of LEG Participants
Energy Producers (Prosumers)
- Owners of solar panels on roofs or properties
- Small operators of wind turbines
- Operators of small hydroelectric plants
- Owners of geothermal facilities
Benefits for producers:
- Higher compensation for excess energy
- Optimized use of own facilities
- Participation in local energy market
Energy Consumers
- Households without own production facilities
- Tenants in participating buildings
- Companies and organizations
- Public buildings
Benefits for consumers:
- Access to cheaper, local renewable energy
- Reduced energy costs
- Contribution to sustainability without own investment
Hybrid Participants
Many LEG members are both producers and consumers:
- Produce excess energy during the day
- Draw additional energy at night or in winter
- Optimize their own energy balance
How does energy distribution work in an LEG?
Real-Time Monitoring
Modern LEGs use digital platforms that:
- Record consumption and production in real-time
- Visualize energy flows within the community
- Conduct automatic billing
- Create forecasts for production and consumption
Billing Models
Typical models include:
- Peer-to-peer trading: Members trade energy directly with each other
- Pool model: All energy is fed into a pool and distributed evenly
- Proof of origin: Each consumer receives transparent information about the energy source
Pricing Mechanisms
- Internal price: Cheaper than grid electricity, justified by local distribution
- Surplus compensation: Producers receive fair compensation for fed-in energy
- Transparency: All prices are visible to members
Step-by-Step: How to Join an LEG
Step 1: Research Available Communities
- Identify LEGs in your area (e.g., via Upgrid)
- Compare different community options
- Review membership requirements
- Evaluate potential benefits and costs
Step 2: Evaluate Your Energy Needs
- Analyze your current energy consumption (annual consumption in kWh)
- Assess your potential for renewable energy (roof area, orientation)
- Determine your investment capacity
- Set your sustainability goals
Step 3: Contact Community Leaders
- Attend information sessions
- Ask questions about operation and organization
- Understand financial commitments
- Review legal agreements
Step 4: Complete Application Process
- Submit membership applications
- Provide required documents (energy certificate, meter data)
- Complete technical assessments (if required)
- Finalize legal agreements
Step 5: Installation and Activation
- Arrange smart meter installation (if required)
- Configure access to digital platform
- Participate in onboarding sessions
- Begin participating in the energy community
Frequently Asked Questions (FAQ)
What does it cost to join an LEG?
Costs vary by community. Typically:
- One-time membership fee (often 0-500 CHF)
- Monthly operating contributions (5-20 CHF)
- Potential investments in own facilities (optional)
- Professional service fees (if chosen)
How much can I save through an LEG?
Savings depend on:
- Your current energy consumption
- Local energy prices
- Community size and efficiency
- Available renewable resources
Typical savings are 15-40% of energy costs.
What happens if I move?
- Most LEGs have clear exit procedures
- Equipment investments can often be transferable
- Some communities offer remote participation
- Platforms like Upgrid can help with transitions
Do I need my own solar panel to join an LEG?
No! Many LEGs also accept consumers without own production facilities. You still benefit from cheaper, local renewable energy.
How secure is the energy supply in an LEG?
LEGs are connected to the public electricity grid. If local production is insufficient, grid electricity is automatically drawn, ensuring supply security.
What distinguishes an LEG from a traditional utility provider?
LEGs offer:
- Local, renewable energy
- Transparent, fair prices
- Community engagement
- Greater control over energy source
- Direct contribution to energy transition
Learn more about the differences between LEGs and utility providers here.
Can companies also join an LEG?
Yes! Many LEGs accept both individuals and companies. Especially for SMEs, participation in an LEG can be economically and ecologically sensible.
The Future of LEGs in Switzerland
Government Support
Switzerland continues to invest in LEGs:
- Continued policy development in favor of energy communities
- Financial incentives and subsidies
- Infrastructure investments in smart grids
- Improvements to the regulatory framework
Technological Advances
Developments advancing LEGs:
- Improved battery storage solutions
- Advanced smart grid capabilities
- AI-powered energy optimization
- Enhanced monitoring and control systems
Market Expansion
Expected developments:
- Increasing number of LEG communities across Switzerland
- Greater participation opportunities for individuals and businesses
- More diverse energy sources (solar, wind, water, geothermal)
- Improved community services and platforms
Take Action Now: Become Part of an Energy Community
Joining a Local Energy Community is more than just an energy decision – it's a step toward a sustainable future, community engagement, and financial savings.
Ready to get started?
- Visit Upgrid.ch to explore available LEG communities in your area
- Schedule a free consultation to discuss your specific needs
- Connect with local LEG communities through our platform
- Take the first step toward energy independence and sustainability
Upgrid is Switzerland's leading platform for connecting with Local Energy Communities. We make the process as simple as possible.
Related Articles:
- LEG vs. Traditional Utility: All Differences Explained
- Starting an LEG: Step-by-Step Guide with Checklist
- LEG Cost-Benefit Analysis: How Much Can You Save?
- Upgrid: Switzerland's First and Leading LEG Platform
About Upgrid: Upgrid is Switzerland's leading platform for connecting individuals and organizations with Local Energy Communities. Our mission is to accelerate the transition to renewable energy through community-driven solutions.