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Why 2025 is the Year of Energy Communities

Jan 22, 2025

2025 is the year when Local Energy Communities (LEGs) gain massive importance in Switzerland. Learn which factors are driving this transformation.

Cover Image for Why 2025 is the Year of Energy Communities

2025 marks a historic turning point for Local Energy Communities (LEGs) in Switzerland. What was considered a niche concept for years is now becoming mainstream. Why is that? What factors make 2025 the year of energy communities?

In this article, you'll learn about the political, technological, economic, and societal developments making 2025 the breakthrough year for LEGs in Switzerland.

The Perfect Convergence: Why Now?

2025 brings together several critical factors that massively advance LEGs:

1. New Regulations from 2026

What's changing?

Switzerland is significantly expanding rules for rooftop solar, energy storage, and energy communities from 2026. This creates:

  • Expanded opportunities: More flexibility in establishing and operating LEGs
  • Clear framework: Legal certainty for investors and participants
  • Financial incentives: Improved grants and subsidies
  • Simplified processes: Less bureaucracy in establishment

Why this matters:

Many Swiss people are consciously waiting for the new regulations before joining or founding an LEG. With the announcement of details for 2026, 2025 becomes the year of preparation and growth.

2. Energy Strategy 2050: Time Pressure Increases

The goals:

  • Net-zero emissions by 2050
  • Phase-out of nuclear power
  • 50% renewable energy by 2035
  • 43% increase in energy efficiency by 2035

Where are we in 2025?

With only 25 years until 2050, it's clear: Switzerland must act now. LEGs are one of the most efficient ways to achieve these goals because they:

  • Promote local, renewable energy
  • Directly involve citizens
  • Are quickly scalable
  • Are economically attractive

2025 is the year when urgency becomes reality.

3. Technological Maturity Achieved

Smart Grid Technology:

  • Smart meters are now standard
  • Digital platforms are mature and user-friendly
  • AI-powered optimization is becoming increasingly accessible
  • Blockchain technology enables transparent trading

Why this matters in 2025:

The technology that makes LEGs possible is now:

  • Affordable: Costs for smart meters and software have significantly dropped
  • Reliable: Decades of development have created stable systems
  • User-friendly: Platforms like Upgrid make LEG management easy
  • Scalable: Systems can handle thousands of participants
  • 4. Economic Attractiveness

    Cost Development:

    YearSolar Panel PriceLEG SavingsROI
    20201,500 CHF/kWp15-25%8-12 years
    20251,000 CHF/kWp15-40%5-8 years
    2030 (forecast)800 CHF/kWp20-45%4-6 years

    Why 2025 is the sweet spot:

    • Cheap technology: Solar panels are cheaper than ever
    • Rising electricity prices: Grid electricity becomes more expensive, LEG energy stays cheap
    • Improved grants: New subsidies make LEGs more attractive
    • Faster payback: Investments pay off faster

    5. Societal Change

    Changed attitudes:

    • Climate awareness: 75% of Swiss people see climate change as an important problem
    • Local initiatives: Desire for more local control and engagement
    • Community spirit: After the pandemic, stronger desire for community
    • Sustainability in everyday life: Environmental awareness is put into practice

    2025: From awareness to action

    After years of awareness change, more and more people are now acting:

    • They install solar panels
    • They are interested in LEGs
    • They want to actively contribute to the energy transition
    • They are looking for practical solutions

    6. Political Support at All Levels

    Federal level:

    • Clear promotion of energy communities in the Energy Act
    • Financial incentives through the BFE (Federal Office of Energy)
    • Investments in smart grid infrastructure

    Cantonal level:

    • Many cantons offer additional grants
    • Simplified approval procedures
    • Support in establishing LEGs

    Municipal level:

    • Municipalities establish their own LEGs
    • Support for citizen LEGs
    • Integration into municipal energy strategies

    2025: Coordinated support

    All levels work together to promote LEGs – this has never been as strong as in 2025.

    Numbers and Facts: Growth in 2025

    Expected Developments

    Number of LEGs:

    • 2024: ~200 LEGs in Switzerland
    • 2025 (forecast): ~400-600 LEGs
    • 2026 (forecast): ~800-1,200 LEGs

    Number of participants:

    • 2024: ~10,000 participants
    • 2025 (forecast): ~25,000-40,000 participants
    • 2026 (forecast): ~60,000-100,000 participants

    Investments:

    • 2025: Estimated 200-300 million CHF in LEG infrastructure
    • Focus on solar panels, storage, smart meters

    Regional Hotspots

    Particularly strong growth expected in:

    • Zurich: Largest urban LEG projects
    • Basel: Pioneer region for energy communities
    • Bern: Strong political support
    • Geneva: International role model function
    • Rural regions: Alpine LEGs with hydropower

    The Role of Digitization

    Platforms like Upgrid Make the Difference

    Digital platforms have made LEGs mass-marketable:

    Before digitization:

    • Complex manual billing
    • Difficult coordination between members
    • High administrative burden
    • Limited scalability

    With modern platforms (2025):

    • ✅ Automatic real-time billing
    • ✅ Easy communication and coordination
    • ✅ Minimal administrative burden
    • ✅ Unlimited scalability

    Upgrid as an example:

    As Switzerland's leading LEG platform, Upgrid enables:

    • Easy joining of existing LEGs
    • Support in establishing new LEGs
    • Transparent billing and monitoring
    • Connection between producers and consumers

    Learn more about Upgrid.

    Challenges Being Solved in 2025

    1. Complexity

    Problem: LEG establishment and management were too complex.

    Solution 2025:

    • Simplified legal frameworks
    • Digital tools for all steps
    • Professional support (e.g., through Upgrid)
    • Standardized processes

    2. Financing

    Problem: High initial investments were deterrent.

    Solution 2025:

    • Improved subsidies (up to 30% of investment costs)
    • Financing models (crowdfunding, cooperative shares)
    • Cheaper technology (solar panels -50% since 2020)
    • Community financing

    3. Technical Hurdles

    Problem: Complex technical requirements.

    Solution 2025:

    • Plug-and-play systems
    • Professional installation and maintenance
    • Remote monitoring and support
    • Simplified smart meter integration

    4. Awareness and Information

    Problem: Many people don't know what LEGs are.

    Solution 2025:

    • Information campaigns by federal and cantonal governments
    • Platforms like Upgrid make LEGs visible
    • Success stories spread
    • Media coverage increases

    Why You Should Act in 2025

    Benefits of Early Entry

    Financially:

    • Best grants are now available
    • Cheapest technology prices
    • Faster payback through rising electricity prices

    Strategically:

    • Early positioning in growing community
    • Greater influence on community development
    • Better selection of available LEGs

    Practically:

    • Less competition for places
    • More support through pioneer status
    • Earlier familiarization with new systems

    Risk of Waiting

    If you wait until 2026 or later:

    • ⚠️ Possibly missed grants
    • ⚠️ Higher technology prices (with increasing demand)
    • ⚠️ Longer waiting lists for popular LEGs
    • ⚠️ Missed savings in the coming years

    The Future After 2025

    What Comes After 2025?

    2026-2030:

    • Mass adoption of LEGs
    • Integration into smart cities
    • Connection of multiple LEGs to larger networks
    • International exchange and standards

    2030-2050:

    • LEGs as standard for energy supply
    • Complete integration into energy system
    • New technologies (hydrogen, new storage)
    • Extended services (e-mobility, heat)

    Take Action Now: Become Part of the Energy Transition 2025

    2025 is the year of energy communities – and you can be part of it.

    Next steps:

    1. Learn about LEGs: Learn the basics
    2. Find an LEG in your area: Upgrid can help you
    3. Schedule a consultation: Talk to experts about your options
    4. Become a pioneer: Join an LEG or establish one

    The energy transition doesn't happen somewhere – it happens locally, in communities like yours. 2025 is the year this movement really gains momentum.

    Are you ready to be part of it?


    Related Articles:

    • What is an LEG? Complete Guide 2025
    • Starting an LEG: Step-by-Step Guide with Checklist
    • Upgrid: Switzerland's First and Leading LEG Platform
    • LEG Cost-Benefit Analysis: How Much Can You Save?

    About Upgrid: Upgrid is Switzerland's leading platform for Local Energy Communities. We make it easy to join an LEG or establish one. Visit Upgrid.ch for more information.