Later this yr, Israel will turn out to be one of many first nations on the planet to require the set up of photo voltaic panels on roofs, in line with new laws permitted by the Nationwide Planning Authority, Ministry of Vitality and Infrastructure, and the Ministry of Inside. From December, acquiring an occupancy allow (Kind 4) shall be conditional on the set up of photo voltaic panels on roofs of each home with a roof space of greater than 100 sq. meters, industrial buildings, public buildings, and even non-residential buildings with a roof space of 250 sq. meters or extra.
The laws had been permitted as a part of a pattern to increase electrical energy manufacturing from photo voltaic panels on roofs, with a goal of 100-150,000 roofs by 2030, and growing manufacturing from them much more by 2040. That is to decentralize the grid and improve use of renewable vitality. Whereas the advantages are clear, consultants and authorities officers warn that it’ll price tons of of hundreds of thousands of shekels a yr in incentivized tariffs paid to the house owners of the rooftop photo voltaic panels, which can roll instantly onto our electrical energy payments. Regardless of the criticism, the Ministry of Vitality and Infrastructure insists that there’s a market failure that must be mounted.
The Ministry of Vitality and Infrastructure has additionally permitted new fee strategies for many who set up photo voltaic panels on their roofs, with a extra speedy return on funding and linking funds to the Shopper Value Index (CPI). All this whereas locking within the value for 25 years, even assuming that manufacturing from photo voltaic panels will turn out to be extra environment friendly and cheaper sooner or later. Immediately, panels that produce as much as 15 kilowatts reward the property proprietor with NIS 0.48 per kWh, 3-4 occasions the quantity paid for panels on massive photo voltaic fields, and even NIS 0.54 per kWh for properties in massive cities. Electrical energy customers pay the invoice for these incentivized tariffs.
The general public is in no rush
Regardless of the beneficiant subsidy, there are solely about 30,000 photo voltaic paneled roofs in Israel. In response to Ministry of Vitality and Infrastructure sustainable vitality division head Ron Eifer the reason being “An absence of familiarity with or consideration to the problem amongst builders” in addition to “an ‘company drawback’ wherein the celebration developing the constructing will typically not be the celebration that can profit from the continued income from the photo voltaic panel system.” This is the reason, he says, the regulation requires the set up of a comparatively small system (beginning at 5 kilowatts, reminiscent of a small non-public roof), and the roof house owners will determine whether or not they wish to increase it.
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The primary US state to impose such a authorized requirement was California in 2020, and some years later France and Italy enacted related laws, in addition to a number of states in Germany. The EU will steadily impose such a requirement between 2026 and 2032.
However the query arises: Why are each subsidies and coercion required? In response to Eifer, there are main advantages that make it worthwhile. “It contributes to creating the electrical energy sector cleaner, extra decentralized and extra resilient. Additionally, bringing electrical energy manufacturing nearer to the place it’s consumed will save on electrical energy losses and the necessity to construct costly energy traces that take up quite a lot of house.”
However some doubt this. A research by the Nationwide Financial Council claims that even after calculating the advantages in saving land within the Negev and the prices of constructing transmission infrastructure, it’s nonetheless extra worthwhile to construct massive photo voltaic fields than tons of of 1000’s of photo voltaic roofs. These are considerably extra environment friendly, and require a a lot decrease fee per kWh produced. As well as, there isn’t any want for a long-term dedication of 25 years and particular fee tracks. In response to the identical research, changing photo voltaic rooftops and different dual-use initiatives with a low likelihood of realization to massive ground-based photo voltaic fields would save the economic system about NIS 8 billion.
Nonetheless, Eifer from the Ministry of Vitality and Infrastructure stresses that the ministry’s coverage is to advertise each fields and photo voltaic panel rooftops. The Israel Electrical energy Authority can also be involved concerning the appreciable price, particularly because of the excessive fee assured to those that set up photo voltaic panels on their roofs. They estimate that, assuming that the photo voltaic roofs is not going to come on the expense of ground-based services however on the expense of typical gas-fired technology, reaching the Ministry of Vitality’s purpose of 100,000 new photo voltaic roofs will price the electrical energy sector NIS 425 million per yr. Reaching the extra formidable purpose of 150,000 roofs will price NIS 888 million per yr – which can improve electrical energy payments for the whole nation by 2.5%.
Whereas the Electrical energy Authority acknowledges the benefits that the Ministry of Vitality presents on photo voltaic paneled roofs, it’s involved concerning the excessive value. “There are nice benefits within the requirement to put in photo voltaic panels on roofs, as a result of it would make it simpler to plan a extra environment friendly and cheaper distribution community for customers,” the Electrical energy Authority says, “Nonetheless, because the subsidy for renewable energies is already excessive as we speak, the Authority recommends specializing in making a tariff construction that can encourage investments with out an extra and burdensome price on the electrical energy tariff for customers.”
Both method, on the finish of 2026, the present regulatory preparations round subsidies for photo voltaic panels on roofs will finish, which can open the door to reducing the tariff for brand spanking new installers. If this occurs, will permit for extra environment friendly planning of the community, however with a decrease subsidy for manufacturing.
In any case, the principle hope of the Ministry of Vitality and Infrastructure is definitely fewer non-public properties, and extra massive photo voltaic roofs reminiscent of these on factories and hospitals that can produce far more for the primary 15 kilowatts bought by the Israel Electrical Co. (IEC) at an especially excessive value.
“Excessive and harsh step”
A senior authorities official within the vitality sector is protesting the brand new coverage to power the set up of photo voltaic paneled roofs, calling it an “excessive step” and “a harsh regulation that violates property rights, raises housing costs and will increase the price of dwelling.” In response to him, “There are already excessive photo voltaic panel tariffs that encourage set up and assure a good-looking return for many who select to take action. The truth that the scope of set up is inadequate doesn’t justify the usage of the harshest regulatory instrument: a blanket requirement.”
Within the non-public sector, opinions are divided: the Producers’ Affiliation, whose factories shall be a significant component within the manufacturing of photo voltaic paneled roofs, is strongly opposed. In response to its president, Dr. Ron Tomer, “We see this as a gross interference by the federal government within the issues of trade and the enterprise sector.” He would favor “regulatory incentives for putting in photo voltaic panels, reminiscent of fast-track constructing permits, in order that they select to put in these panels of their very own free will and never by regulatory coercion that might solely hurt them.”
Then again, photo voltaic panel installers will after all profit from the brand new laws. Volta Photo voltaic founder and CEO Eran Tal says, “Photo voltaic vitality is a vital nationwide infrastructure, particularly in a densely populated, scorching, and threatened nation like ours. The duty to make the most of the roofs of public, business, and personal buildings for the manufacturing of unpolluted electrical energy is a vital step by way of vitality safety, emergency resilience, and financial financial savings for each family. From the attitude of the whole economic system, saving land, lowering air pollution, easing the burden on the electrical energy grid, and growing vitality independence are steps that carry double worth – each for the nationwide economic system and for the person shopper.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on June 30, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
