Summary

The Federal Department of Environment, Transport, Energy and Communications (UVEK) has set the nominal capital cost rates (WACC) for renewable energy support instruments for 2026. The new rates show consistently declining capital costs compared to the previous year, making investments in renewable energy more affordable. The adjustment is based on a new calculation method that has been in effect since March 2025 and was made after consultation with the Electricity Commission (ElCom).

Persons

  • UVEK (Federal Department of Environment, Transport, Energy and Communications)

Topics

  • Energy promotion
  • Renewable energy
  • Capital cost rates
  • Investment contributions
  • Market premiums

Clarus Lead

The UVEK has reset the average capital cost rates (WACC – Weighted Average Cost of Capital) for promoting renewable energy in 2026. These rates are crucial for calculating market premiums and investment contributions, as they reflect the return that capital providers are entitled to on their investments in production facilities. The determination was made following a methodological innovation in the Energy Promotion Ordinance (effective since March 2025) and in coordination with ElCom.

Detailed Summary

WACC is a central parameter for calculating subsidies in the renewable energy sector. It accounts for the imputed capital costs that investors are entitled to expect on capital invested or newly invested in production facilities. Precise determination is essential to create incentives for investment without wasting subsidies.

The new rates for 2026 show a consistent picture of declining capital costs. For hydropower, biomass, and large-scale photovoltaic installations, rates fall from 5.10% to 4.28%. Geothermal installations benefit from a reduction from 5.45% to 4.63%, while general photovoltaic installations at 3.75% (previously 4.58%) show the strongest decline. Wind power installations fall from 5.28% to 4.45%. These reductions reflect improved market conditions and lower financing costs for investments in renewable technologies.

The determination is based on a new calculation method that has been anchored in the Energy Promotion Ordinance since March 2025. The UVEK consulted ElCom before publishing the final rates. This approach ensures well-founded and coordinated energy policy.

Key Statements

  • WACC rates 2026 decline across the board compared to 2025, making investments in renewable energy more attractive
  • Photovoltaic installations benefit most strongly with a decline to 3.75% (from 4.58%)
  • New calculation method since March 2025 forms the basis for the determination
  • Consultation with ElCom ensures coherence between promotion and market supervision

Critical Questions

  1. Data Quality: What current market data and interest rates were incorporated into the new calculation method, and how robust is the data basis for the various energy sources?

  2. Conflicts of Interest: To what extent do concerns of the energy industry influence WACC determination, and how independent is the ElCom consultation from lobbying interests?

  3. Causality: Does the reduction in WACC rates actually lead to more investments in renewable energy, or do other factors (grid connection, permits, raw material prices) have a stronger effect?

  4. Feasibility and Side Effects: Can subsidy recipients finance their projects profitably with the new, lower rates, particularly for technologies with higher operating costs such as geothermal?

  5. Transparency: Are the calculation details and assumptions of the new method publicly accessible, and can external stakeholders verify the traceability?

Source Directory

Primary Source: UVEK Sets WACC for Renewable Energy Support Instruments for 2026 – news.admin.ch, March 2, 2026

Verification Status: ✓ March 2, 2026

This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact-Check: March 2, 2026