Short answer
What you need to know first.
A local electricity community in St. Gallen connects producers and consumers through the sgsw grid without everyone needing their own PV system. Decisive factors are the same voltage level, one smart meter per connection and PV production capacity of at least 5% of total connection capacity. The sgsw address map also identifies the possible 20% or 40% discount on grid-use charges.
Important
As of 2026, a LEG does not automatically apply across the whole canton: for the St.Gallen municipal utility offer, connections must be in the same sgsw supply area and on the same voltage level. The address in the sgsw map determines whether a 20% or 40% grid-use discount is possible; a PV system alone creates no entitlement.
Decision points
What determines the right path.
Location is the first deciding factor. For its LEG, sgsw requires all participants to be in the same supply area and connected at the same voltage level. Being neighbours in the same canton is therefore insufficient; the address must appear as an eligible LEG option in the sgsw map.
The community needs a viable PV base. sgsw requires at least one photovoltaic system and installed production capacity of at least 5% of the combined connection capacity of all participating properties. Adding further consumption sites requires this ratio to be checked again against the current connection values.
Not every participant has to produce solar power. sgsw also allows households, businesses and property owners without their own system to join an existing LEG. For planning, this separates the question of suitable PV size from the question of which neighbouring addresses can consume the power.
Smart meters are a technical requirement, not merely a convenience. sgsw requires every participant to have a smart meter and installs one where it is not yet available. Metering and billing can only then be handled properly through the grid operator.
The economic effect depends on the grid level. In the immediate area on the same transformer circuit, sgsw grants a 40% discount on grid-use charges; in the wider area of the same substation, it is 20%. The discount applies to grid use, not automatically to the energy price or feed-in remuneration.
Timing has mattered since 1 January 2026. LEG have only been permitted since that date; the St.Gallen municipal utility provides address lookup, technical assessment, metering and billing. For a specific project, PV design, participating properties and the metering concept should therefore be set together before registration.
Sequence
How the project stays cleanly managed.
- 1
Clarify address and grid areaenter the address of every interested property in the sgsw LEG map. Only the map shows whether an existing LEG, an sgsw LEG or formation of a new LEG is possible at that specific connection.
- 2
Define participants and rolesrecord producing participants with a PV system, consumption-only participants and any property representatives by name. At least one system must supply solar power; households without their own PV can still participate as consumers.
- 3
Calculate the 5% thresholdcompare the LEG’s installed PV production capacity with the combined connection capacity of all participating properties. Only when capacity reaches at least 5% does the community meet the minimum requirement published by sgsw.
- 4
Secure meteringcheck for a smart meter at every connection. If one is missing, plan its installation with sgsw; without smart meters, participants’ consumption and production values are unavailable for LEG billing.
- 5
Classify the grid-use zonedistinguish the 40% zone on the same transformer circuit from the 20% zone in the same substation for the checked addresses. Zoning belongs before the economic assessment because it determines the discount on grid-use charges.
- 6
Submit the project to sgsw and define billingaccording to its offer, the municipal utility supports technology, metering and billing. Before binding implementation, participants should nevertheless separately record how local solar power, residual electricity purchases and any surpluses are handled within their community.
Checklist
Questions to settle before the quote.
- Check the address in the sgsw map: same supply area, same voltage level and a 20% or 40% zone
- Calculate at least 5% production capacity against the combined connection capacity of all participating properties
- Set the PV system, smart meters and the roles of producing and consuming participants before registration
- Assess the grid-use discount separately from each participant’s energy-price and feed-in arrangements
FAQ
Common questions on this topic.
Sources
Official sources & references.
The responsible authorities are decisive. Always verify binding details – amounts, deadlines and conditions – for your specific property against the current status of the respective authority.
- St.Gallen municipal utility LEGSt.Gallen municipal utility
- St.Gallen municipal utility launches LEG offerCity of St. Gallen
- ElCom: frequently asked questions on basic supplySwiss Federal Electricity Commission ElCom
- ElCom: questions and answers on the MantelerlassSwiss Federal Electricity Commission ElCom