For as far as we can tell, deep geothermal energy has an inconceivably large theoretical potential. It therefore rightly plays an important role in Swiss energy and climate policy. The use of near-surface geothermal energy is already established – Switzerland is a world leader in this area. However, deep geothermal energy, and in particular its use for electricity production, is still in its infancy. A major obstacle to the development of deep geothermal projects is that little research has been conducted in Switzerland to date into the deep subsurface and the physical conditions that prevail there. However, due to the enormous potential, the development and use of deep geothermal energy is is subsidised by the federal government. The framework conditions have been further improved as part of the Energy Strategy 2050 and the revision of the CO₂ Act.

 The following possible subsidies from the federal government are available for deep geothermal electricity projects:

• Risk guarantee for electricity projects of max. 60% (including preparatory work).

• Alternatively, or in combination: exploration grants of up to 60% of eligible prospection and exploration costs.

• Feed-in tariff of currently 46.5 cents/kWh for electricity from hydrothermal (conventional) sources, technology bonus for geothermal electricity from EGS plants of 7.5 cents/kWh for a period of 15 years.

In addition, since January 1st, 2018, a fund of up to CHF 30 million per year has been set up for heating projects with direct geothermal energy use, as part of the new CO₂ Act. Projects for the provision of geothermal heat for buildings can thus receive a maximum of 60% funding for the exploration and development of the geothermal reservoir.