Pricing under the RCP/ZEV

In a Self-consumption group (RCP/ZEV) arrangement, the property owner (or the condominium association) becomes the electricity supplier for the building's residents, assuming responsibilities typically assigned to the distribution network operator (DSO). This includes investment, energy supply, maintenance of installations, and metering and billing services.

Article 16 of the Energy Ordinance specifies how to calculate the prices charged to consumers. The aim is to make the owner's investments profitable while protecting tenants from potential abuses. In a condominium association, co-owners are free to set their own rates.

Here are the 4 cost elements to consider in pricing:

1. Electricity withdrawn from the network

The costs of electricity drawn from the grid include all the elements charged by the Distribution Network Operator (DSO) to the Collective Self-Consumption (SCG) arrangement: energy, network usage, taxes, and the subscription fee for the introductory meter.

These costs are passed on to the consumers at the same rate, with no markup for the owner.

However, in the case of a microgrid where several buildings are connected to the same network connection point, the owner sets a tariff to cover their investments as well as the maintenance costs associated with connecting the buildings (wiring, transformers, etc.). In this case, the price charged to consumers is determined according to the effective cost method for solar electricity, as explained below.

2. Solar electricity

The costs of internally produced electricity are covered by the sale of photovoltaic electricity to consumers and by the resale of the surplus injected into the Distribution Network Operator (DSO). The regulation offers two methods to set the tariff for the solar electricity sold to the members of the Collective Self-Consumption (SCG) arrangement:

1. The flat rate: The tariff is a maximum of 80% of the standard electricity rate (without considering peak/off-peak hours) of the Distribution Network Operator (DSO) that the consumer would pay if they were not a member of the Collective Self-Consumption (SCG) arrangement. In this case, the tariff does not need to be justified to tenants.
2. Actual costs: The tariff is calculated from the actual costs of electricity production after deduction of income from the sale of the surplus. If the calculated rate is lower than the standard product rate, the difference is shared between the owner and the tenant. If the calculated price is higher than the standard rate, the rate must be equal to the standard rate, because the owner does not have the right to charge more.

Actual costs include:

• Depreciation of relevant investments (photovoltaic panels, inverters, wiring to the electrical panel, installation costs, including assembly and scaffolding)
• Interest on depreciation, calculated according to the WACC (weighted average cost of capital) of production ( set at 3.98% for 2025 )
• Operation and maintenance costs (maintenance, repair and replacement of the installation, control and monitoring of the installation, periodic maintenance, ITTO checks, cleaning of the installation, administrative costs, etc.)

Climkit recommends the flat rate method for obvious reasons of simplification. Once this method is selected by the owner, Climkit updates the solar tariff annually based on changes in the local Distribution Network Operator (DSO) rates.

3. Administrative costs

Administrative costs include all expenses related to managing the SCG, such as reading and transmitting meter data, preparing statements, billing consumers, processing payments, and paying the network withdrawal bill.

With a service provider like Climkit, administrative costs for metering and billing are billed directly to consumers. Climkit offers meter reading and generation of statements (3.50 CHF/month) and, optionally, invoicing and collections (6.50 CHF/month). See the details of Climkit services for more information.

4. Meter subscription

When the owner finances the meters, these investments must be treated like those of production facilities. The lifespan of electronic meters is 10 to 15 years. The annual costs of the meters are calculated via a constant annuity over the amortization period, to which is added the interest defined by the production WACC.

If the installation of a meter costs between 200 and 250 CHF for a lifespan of 10 years and 4% interest is added, the owner can receive a "meter subscription" of 2.00 to 2.50 CHF per month and by meter to consumers. Consequently, the purchase of meters by the owner does not increase costs, but rather his investment, without altering his performance.

Climkit offers, in its billing service, to collect the meter subscription directly from consumers on behalf of the owner.

References:

• Energy Ordinance (OEne) of 02/01/2024
• Own consumption of electricity, David Sifonios, editions Proprietaires Services SA, 2023.