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BKW's market-oriented remuneration for solar power pays off for return deliverers

Bern, December 2021

Anyone who operates a photovoltaic system and feeds all or part of the electricity into the BKW network can look forward to attractive remuneration. The return delivery fee has more than doubled since the 4th quarter of 2020 (without guarantees of origin). This market-oriented remuneration system also proves its worth because BKW adjusts the remuneration every quarter and thus passes the higher market prices on to return deliverers in a timely manner.

An increasing number of BKW customers with basic supplies are operating their own electricity production plant and feeding excess energy into the BKW network. For every kilowatt hour (kWh) of energy fed into the grid, they receive a remuneration that is at least equal to the current market value of electricity. It is determined retrospectively on a quarterly basis.

This market value has risen sharply in the past few weeks and months. This is why BKW’s return deliverers receive a correspondingly higher remuneration for the electricity fed into the grid. Between
In the fourth quarter of 2020 and the third quarter of 2021, the remuneration increased from under 5 to over 10 cents per kilowatt hour (without guarantees of origin, which BKW also pays for if feed-in
Customers wish). There is no guarantee that electricity prices will remain at the current level over the long term. However, current market expectations indicate that the return delivery remuneration will be higher than the low prices of recent years for the foreseeable future.

Prompt passing on of higher prices
The return deliveries benefit twice from this market-oriented remuneration system: BKW not only increases the remuneration when the market price rises, but also passes this development on promptly,
by adjusting their return delivery fees quarterly. In this way, the remuneration paid reflects the market value of the electricity and, in particular, creates incentives for increased winter production. From BKW’s point of view
In this respect, the market-based remuneration proves to be more efficient than the frequently raised demand for a fixed return delivery remuneration.

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