Falling battery costs drive solar storage boom in Switzerland

Solar power production in Switzerland rose by 43 percent in July from a year earlier, making home battery storage increasingly attractive, SRF reported. The increase was driven by unusually strong sunshine and the growing number of photovoltaic systems across the country.

As more roofs are covered with solar panels, production often exceeds consumption around midday. The electricity grid cannot absorb all of the surplus, meaning some of the energy is lost.

Battery storage offers a way to save the excess electricity and use it later, when demand is higher. Anna Plancherel, who is responsible for French-speaking Switzerland at the industry association Swissolar, said batteries could add flexibility to the electricity system by storing surplus power and feeding it into the grid when needed.

Jérôme Menoud, director and founder of Sungrid, a small and medium-sized company specialising in photovoltaics, said electricity produced during the day was not necessarily consumed at the same time. Storing it made it possible to use the power when it was needed, he said.

Investment conditions have improved significantly in recent years. The price paid to owners for feeding electricity into the grid has fallen sharply, while battery costs have dropped by half, according to Menoud. He said batteries had therefore become highly profitable.

Public institutions are also supporting investment in energy storage. Since March, the canton of Neuchâtel has offered subsidies covering up to 15 percent of the investment. Further support is available in the cities of Payerne and Bulle and from Geneva’s municipal utility. Neuchâtel received about 140 applications in roughly five months.

Neuchâtel government councillor Laurent Favre said the aim was to encourage owners to manage their photovoltaic production more effectively, increase self-consumption and ease pressure on the electricity grid. He warned that the subsidies could be withdrawn if prices continued to fall.

According to electricity provider Groupe E, about one in two newly installed photovoltaic systems is now sold with a battery. Many owners who already have solar panels are also adding storage.