diff --git a/homeassistant/components/shelly/entity.py b/homeassistant/components/shelly/entity.py
index 5a420a4543b..587eb00b979 100644
--- a/homeassistant/components/shelly/entity.py
+++ b/homeassistant/components/shelly/entity.py
@@ -192,8 +192,12 @@ def async_setup_rpc_attribute_entities(
             if description.removal_condition and description.removal_condition(
                 coordinator.device.config, coordinator.device.status, key
             ):
-                domain = sensor_class.__module__.split(".")[-1]
-                unique_id = f"{coordinator.mac}-{key}-{sensor_id}"
+                entity_class = get_entity_class(sensor_class, description)
+                domain = entity_class.__module__.split(".")[-1]
+                unique_id = entity_class(
+                    coordinator, key, sensor_id, description
+                ).unique_id
+                LOGGER.debug("Removing Shelly entity with unique_id: %s", unique_id)
                 async_remove_shelly_entity(hass, domain, unique_id)
             elif description.use_polling_coordinator:
                 if not sleep_period:
diff --git a/tests/components/shelly/test_switch.py b/tests/components/shelly/test_switch.py
index 54923b538f6..3234e3eb0b9 100644
--- a/tests/components/shelly/test_switch.py
+++ b/tests/components/shelly/test_switch.py
@@ -1,15 +1,18 @@
 """Tests for Shelly switch platform."""
 
 from copy import deepcopy
+from datetime import timedelta
 from unittest.mock import AsyncMock, Mock
 
 from aioshelly.const import MODEL_1PM, MODEL_GAS, MODEL_MOTION
 from aioshelly.exceptions import DeviceConnectionError, InvalidAuthError, RpcCallError
+from freezegun.api import FrozenDateTimeFactory
 import pytest
 
 from homeassistant.components.climate import DOMAIN as CLIMATE_DOMAIN
 from homeassistant.components.shelly.const import (
     DOMAIN,
+    ENTRY_RELOAD_COOLDOWN,
     MODEL_WALL_DISPLAY,
     MOTION_MODELS,
 )
@@ -28,9 +31,14 @@ from homeassistant.exceptions import HomeAssistantError
 from homeassistant.helpers.device_registry import DeviceRegistry
 from homeassistant.helpers.entity_registry import EntityRegistry
 
-from . import init_integration, register_device, register_entity
+from . import (
+    init_integration,
+    inject_rpc_device_event,
+    register_device,
+    register_entity,
+)
 
-from tests.common import mock_restore_cache
+from tests.common import async_fire_time_changed, mock_restore_cache
 
 RELAY_BLOCK_ID = 0
 GAS_VALVE_BLOCK_ID = 6
@@ -374,15 +382,57 @@ async def test_rpc_device_unique_ids(
 
 
 async def test_rpc_device_switch_type_lights_mode(
-    hass: HomeAssistant, mock_rpc_device: Mock, monkeypatch: pytest.MonkeyPatch
+    hass: HomeAssistant,
+    freezer: FrozenDateTimeFactory,
+    mock_rpc_device: Mock,
+    monkeypatch: pytest.MonkeyPatch,
 ) -> None:
     """Test RPC device with switch in consumption type lights mode."""
+    switch_entity_id = "switch.test_name_test_switch_0"
+    light_entity_id = "light.test_name_test_switch_0"
+
+    monkeypatch.delitem(mock_rpc_device.status, "cover:0")
+    monkeypatch.setitem(mock_rpc_device.status["sys"], "relay_in_thermostat", False)
+    await init_integration(hass, 2)
+
+    # Entity is created as switch
+    assert hass.states.get(switch_entity_id)
+    assert hass.states.get(light_entity_id) is None
+
+    # Generate config change from switch to light
     monkeypatch.setitem(
         mock_rpc_device.config["sys"]["ui_data"], "consumption_types", ["lights"]
     )
-    await init_integration(hass, 2)
+    inject_rpc_device_event(
+        monkeypatch,
+        mock_rpc_device,
+        {
+            "events": [
+                {
+                    "data": [],
+                    "event": "config_changed",
+                    "id": 1,
+                    "ts": 1668522399.2,
+                },
+                {
+                    "data": [],
+                    "id": 2,
+                    "ts": 1668522399.2,
+                },
+            ],
+            "ts": 1668522399.2,
+        },
+    )
+    await hass.async_block_till_done()
 
-    assert hass.states.get("switch.test_switch_0") is None
+    # Wait for debouncer
+    freezer.tick(timedelta(seconds=ENTRY_RELOAD_COOLDOWN))
+    async_fire_time_changed(hass)
+    await hass.async_block_till_done()
+
+    # Switch entity should be removed and light entity created
+    assert hass.states.get(switch_entity_id) is None
+    assert hass.states.get(light_entity_id)
 
 
 @pytest.mark.parametrize(