The legal framework for Local Energy Communities (LEGs) in Switzerland is clearly defined and continuously evolving. For anyone wanting to establish or join an LEG, understanding the legal foundations is important.
In this comprehensive guide, you'll get a complete overview of the laws, regulations, and legal requirements for LEGs in Switzerland in 2025.
Legal Basis: Energy Act (EnG)
The Energy Act as Foundation
The Swiss Energy Act (EnG) forms the legal basis for all energy communities in Switzerland. It has been revised several times and ensures that:
- Energy communities are legally recognized
- Clear framework exists for operation
- Consumer protection is guaranteed
- Transparency and fairness are ensured
Important Articles in the EnG
Article 6 - Renewable Energy:
- Promotion of renewable energy
- Support for decentralized energy production
- Incentives for local energy solutions
Article 11 - Grid Access:
- Right to grid access for energy communities
- Fair conditions for grid connection
- Transparent grid fees
Article 12 - Self-Consumption:
- Right to self-consumption of produced energy
- Opportunities for energy exchange within communities
- Simplified regulations for associations
Federal Office of Energy (BFE): Regulations and Guidelines
BFE Regulations
The Federal Office of Energy (BFE) issues detailed regulations for implementing the Energy Act:
Energy Ordinance (EnV):
- Technical requirements for LEGs
- Safety standards
- Metering and billing regulations
- Smart meter requirements
Grid Access Ordinance (NZV):
- Rules for grid access
- Grid fee structure
- Procedures for grid conflicts
Guidelines and Recommendations
The BFE regularly publishes guidelines for:
- Best practices for LEG establishment
- Technical standards
- Billing models
- Safety requirements
Cantonal Regulations and Differences
Differences Between Cantons
While federal laws apply uniformly, cantons can issue supplementary regulations:
Zurich:
- Additional grants for LEGs
- Simplified approval procedures
- Support programs
Basel-City:
- Strong promotion of renewable energy
- Innovative LEG models
- Urban initiatives
Bern:
- Comprehensive advisory services
- Financial support
- Cooperation with municipalities
Geneva:
- International standards
- Promotion of cross-border projects
- Innovative financing models
Important for LEG Establishment
Before establishing an LEG, you should:
- ✅ Check cantonal regulations
- ✅ Research available grants
- ✅ Understand local approval procedures
- ✅ Use advisory services
Legal Requirements for LEG Establishment
Legal Form of the LEG
LEGs can take various legal forms:
1. Cooperative
- Democratic structure (one vote per member)
- Suitable for larger communities
- Clear liability rules
- Possible tax advantages
Legal requirements:
- At least 7 members
- Cooperative bylaws
- Registration in commercial register
- Annual general meeting
2. Association
- Simple structure
- Suitable for smaller communities
- Low establishment costs
- Flexible organization
Legal requirements:
- At least 2 members
- Association bylaws
- Registration in Central Association Register (optional)
- Annual meeting
3. Self-Consumption Community (ZEV)
- Special form for buildings
- Suitable for apartment buildings
- Simplified regulations
- Direct energy distribution
Legal requirements:
- Shared building or property
- At least 2 parties
- Technical requirements (one meter per party)
- Contractual agreement
4. GmbH (Limited Company)
- Legally independent company
- Clear liability limitation
- Professional structure
- Higher establishment costs
Legal requirements:
- At least 1 shareholder
- Share capital (minimum 20,000 CHF)
- Registration in commercial register
- Annual financial statements
Which Legal Form is Right?
Cooperative is ideal for:
- Larger communities (50+ members)
- Democratic decision-making
- Long-term projects
- Community ownership
Association is ideal for:
- Smaller communities (2-50 members)
- Simple structure
- Low costs
- Flexible organization
ZEV is ideal for:
- Building-based projects
- Apartment buildings
- Direct energy distribution in building
- Simplified billing
GmbH is ideal for:
- Commercial projects
- Investor-based models
- Complex structures
- Professional management
Contractual Aspects
Membership Contracts
Every LEG needs clear contracts between:
- LEG and members
- Producers and consumers
- LEG and grid operators
- LEG and utility providers
Important contract components:
1. Membership contract:
- Rights and obligations of members
- Contribution regulations
- Exit conditions
- Liability regulations
2. Energy supply contract:
- Energy prices and fees
- Delivery conditions
- Billing modalities
- Termination rights
3. Feed-in contract (for producers):
- Compensation rates
- Technical requirements
- Metering and billing
- Delivery obligations
4. Grid connection contract:
- Connection conditions
- Grid fees
- Technical requirements
- Maintenance and repairs
Contract Templates
The BFE and various organizations offer:
- ✅ Standard contracts for LEGs
- ✅ Checklists for contract design
- ✅ Legal advice
- ✅ Sample bylaws
Important: Always have contracts legally reviewed before signing.
Grid Access and Grid Fees
Right to Grid Access
The Energy Act guarantees LEGs:
- Non-discriminatory grid access: No disadvantage compared to other market participants
- Transparent grid fees: Clear structure and justification
- Fair conditions: Same rights as other energy providers
Grid Fee Structure
Grid fees consist of:
- Base fee: Fixed monthly fee
- Capacity price: Fee per kW installed capacity
- Energy price: Fee per kWh transmitted energy
Typical costs:
- Base fee: 50-200 CHF/year
- Capacity price: 50-150 CHF/kW/year
- Energy price: 0.02-0.05 CHF/kWh
Dispute Resolution for Grid Conflicts
In conflicts with grid operators:
- Direct negotiation: Try to reach agreement first
- Mediation: Use independent mediation services
- Regulatory authority: For ongoing conflicts, regulatory authority can be involved
- Legal action: Last resort for unresolved conflicts
Tax Aspects
Taxation of LEGs
Income tax:
- Cooperatives: Often tax-exempt or reduced
- Associations: Dependent on activities (ideal vs. commercial)
- ZEV: Tax treatment of individual members
- GmbH: Normal corporate tax
Value-added tax (VAT):
- Energy sales are generally VAT-liable
- Exceptions for small quantities
- Simplified procedures possible
Income tax (for members):
- Revenue from energy sales may be taxable
- Dependent on amount and type of revenue
- Consultation with tax advisor recommended
Tax Optimization
Possible advantages:
- Investment deductions for solar panels
- Tax depreciation
- Reduced tax rates for cooperatives
- Exemption from individual taxes for ideal associations
Important: Consult a tax advisor for your specific situation.
Liability and Insurance
Liability Regulation
Typical liability areas:
1. Operating liability:
- Damage from operation of energy facilities
- Personal injury
- Property damage to third parties
2. Product liability:
- Defects in supplied energy
- Damage from energy quality
- Technical defects
3. Contract liability:
- Breach of contractual obligations
- Non-delivery of energy
- Incorrect billing
Insurance Requirements
Recommended insurance:
1. Operating liability insurance:
- Coverage of operating damage
- Personal injury
- Property damage to third parties
- Typically: 2-5 million CHF coverage
2. Electrical insurance:
- Damage to electrical facilities
- Overvoltage damage
- Fire damage from electricity
3. Professional liability insurance:
- Coverage of financial damage
- Business damage
- Errors in billing
4. Legal protection insurance:
- Coverage of legal disputes
- Advisory costs
- Litigation costs
Data Protection and Data Security
GDPR and Swiss Data Protection Act
LEGs must comply with data protection requirements:
Recorded data:
- Consumption and production data
- Personal data of members
- Billing data
- Communication data
Requirements:
- Consent of data subjects
- Purpose limitation of data
- Data security
- Right to information and deletion
- Privacy policy
Technical measures:
- Encrypted data transmission
- Secure data storage
- Access controls
- Regular security audits
Approval Procedures
Building Permit for Energy Facilities
Solar panels:
- Different requirements depending on canton
- Often simplified procedures for rooftop solar
- For historical monuments: Special requirements
Wind turbines:
- Comprehensive approval procedures
- Environmental impact assessment
- Noise and shadow studies
Storage facilities:
- Dependent on size and technology
- Safety requirements
- Fire protection regulations
Procedures for LEG Establishment
Steps:
- Preliminary review: Review feasibility and legal requirements
- Bylaw draft: Creation of bylaws
- Establishment meeting: Decision-making by members
- Registration: Registration in appropriate register
- Approvals: Obtaining required approvals
- Start: Beginning of operations
New Regulations from 2026
Expected Changes
Switzerland plans expanded regulations from 2026:
Impact on LEGs:
- Simplified establishment procedures
- Expanded opportunities for energy exchange
- Improved grants
- Clearer legal framework
Preparation for 2026:
- Inform yourself about planned changes
- Plan LEG establishments accordingly
- Use transition periods
Frequently Asked Questions (FAQ)
Which legal form should I choose for my LEG?
This depends on various factors:
- Size of community
- Financing model
- Organizational structure
- Long-term goals
Read our guide to LEG establishment for detailed information.
Do I need a lawyer for LEG establishment?
Recommended, but not always mandatory:
- For complex structures: Highly recommended
- For simple structures: Use standard templates and have them reviewed
- For tax questions: Consult tax advisor
Which insurances are mandatory for LEGs?
There is no general insurance requirement, but recommended:
- Operating liability insurance (strongly recommended)
- Electrical insurance
- Legal protection insurance (optional)
How are LEGs taxed?
Depending on legal form:
- Cooperatives: Often tax-exempt
- Associations: Dependent on activities
- ZEV: Taxation of individual members
- GmbH: Normal corporate tax
What must I consider for grid access?
- Right to non-discriminatory access
- Transparent grid fees
- Fair contract conditions
- Possibility of mediation for conflicts
Do the same rules apply to all cantons?
No, while federal laws apply uniformly, cantons have supplementary regulations:
- Additional grants
- Different approval procedures
- Local particularities
Professional Support
When to Seek Professional Advice
Legal advice:
- For complex structures
- For contract design
- For legal disputes
- For establishment process
Tax advice:
- For tax optimizations
- For larger investments
- For income tax questions
- For VAT treatment
Technical advice:
- For facility planning
- For grid connection
- For technical standards
- For safety requirements
Next Steps
Ready to establish or join an LEG?
- Learn about LEG establishment: Step-by-step guide
- Contact Upgrid: We support you with legal questions
- Consult experts: Lawyer or tax advisor if needed
- Check cantonal regulations: Inform yourself about local particularities
The legal framework for LEGs is clear – use it for your energy community!
Related Articles:
- What is an LEG? Complete Guide 2025
- Starting an LEG: Step-by-Step Guide with Checklist
- Switching Grid Provider to LEG: Everything You Need to Know
- Overcoming Legal Hurdles for Energy Communities
About Upgrid: Upgrid supports you with all legal questions about LEGs. We help you choose the right legal form and meet all requirements. Visit Upgrid.ch for more information.