The exact solution of the Schwinger model with compact gauge group U(1) is presented. The compactification is imposed by demanding that the only surviving true electromagnetic degree of freedom c has angular character. Not surprisingly, this topological condition defines a version of the Schwinger model which is different from the standard one, where c takes values on the line. The main consequences are: The spectra of the zero modes is not degenerated and does not correspond to the equally spaced harmonic oscillator, both the electric charge and a modified gauge-invariant chiral charge are conserved (nevertheless, the axial-current anomaly is still present) and, finally, there is no need to introduce a θ-vacuum. A comparison with the results of the standard Schwinger model is pointed out along the text.