Later this 12 months, Israel will develop into one of many first international locations on this planet to require the set up of photo voltaic panels on roofs, in response to new rules accredited by the Nationwide Planning Authority, Ministry of Power and Infrastructure, and the Ministry of Inside. From December, acquiring an occupancy allow (Kind 4) can 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 rules had been accredited as a part of a development to broaden 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, specialists and authorities officers warn that it’ll value tons of of tens of millions of shekels a 12 months in incentivized tariffs paid to the homeowners of the rooftop photo voltaic panels, which is able to roll straight onto our electrical energy payments. Regardless of the criticism, the Ministry of Power and Infrastructure insists that there’s a market failure that must be fastened.
The Ministry of Power and Infrastructure has additionally accredited new cost 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 worth for 25 years, even assuming that manufacturing from photo voltaic panels will develop into extra environment friendly and cheaper sooner or later. At present, panels that produce as much as 15 kilowatts reward the property proprietor with NIS 0.48 per kWh, 3-4 instances the quantity paid for panels on giant photo voltaic fields, and even NIS 0.54 per kWh for properties in giant cities. Electrical energy shoppers 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 keeping with Ministry of Power and Infrastructure sustainable vitality division head Ron Eifer the reason being “An absence of familiarity with or consideration to the difficulty amongst builders” in addition to “an ‘company downside’ through which the celebration establishing the constructing will typically not be the celebration that may profit from the continuing income from the photo voltaic panel system.” That is why, he says, the legislation requires the set up of a comparatively small system (beginning at 5 kilowatts, reminiscent of a small non-public roof), and the roof homeowners will resolve whether or not they need to broaden it.
RELATED ARTICLES
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 regularly impose such a requirement between 2026 and 2032.
However the query arises: Why are each subsidies and coercion required? In keeping with 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 strains that take up loads 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 giant 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 cost per kWh produced. As well as, there is no such thing as a want for a long-term dedication of 25 years and particular cost tracks. In keeping with the identical research, changing photo voltaic rooftops and different dual-use initiatives with a low probability of realization to giant ground-based photo voltaic fields would save the financial system about NIS 8 billion.
Nonetheless, Eifer from the Ministry of Power and Infrastructure stresses that the ministry’s coverage is to advertise each fields and photo voltaic panel rooftops. The Israel Electrical energy Authority can be involved in regards to the appreciable value, particularly because of the excessive cost 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 amenities however on the expense of typical gas-fired technology, reaching the Ministry of Power’s objective of 100,000 new photo voltaic roofs will value the electrical energy sector NIS 425 million per 12 months. Reaching the extra formidable objective of 150,000 roofs will value NIS 888 million per 12 months – which is able to improve electrical energy payments for the complete nation by 2.5%.
Whereas the Electrical energy Authority acknowledges the benefits that the Ministry of Power presents on photo voltaic paneled roofs, it’s involved in regards to the excessive worth. “There are nice benefits within the requirement to put in photo voltaic panels on roofs, as a result of it should make it simpler to plan a extra environment friendly and cheaper distribution community for shoppers,” the Electrical energy Authority says, “Nonetheless, because the subsidy for renewable energies is already excessive immediately, the Authority recommends specializing in making a tariff construction that may encourage investments with out an extra and burdensome value on the electrical energy tariff for shoppers.”
Both means, on the finish of 2026, the present regulatory preparations round subsidies for photo voltaic panels on roofs will finish, which is able to open the door to decreasing the tariff for brand spanking new installers. If this occurs, will enable for extra environment friendly planning of the community, however with a decrease subsidy for manufacturing.
In any case, the primary hope of the Ministry of Power and Infrastructure is definitely fewer non-public houses, and extra giant photo voltaic roofs reminiscent of these on factories and hospitals that may produce rather more for the primary 15 kilowatts bought by the Israel Electrical Co. (IEC) at an especially excessive worth.
“Excessive and harsh step”
A senior authorities official within the vitality sector is protesting the brand new coverage to pressure 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 residing.” In keeping with 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 using the harshest regulatory instrument: a blanket requirement.”
Within the non-public sector, opinions are divided: the Producers’ Affiliation, whose factories can be a significant factor within the manufacturing of photo voltaic paneled roofs, is strongly opposed. In keeping with its president, Dr. Ron Tomer, “We see this as a gross interference by the federal government within the concerns 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 means of regulatory coercion that might solely hurt them.”
However, photo voltaic panel installers will after all profit from the brand new rules. Volta Photo voltaic founder and CEO Eran Tal says, “Photo voltaic vitality is a important nationwide infrastructure, particularly in a densely populated, sizzling, and threatened nation like ours. The duty to make the most of the roofs of public, business, and personal buildings for the manufacturing of fresh electrical energy is a needed step when it comes to vitality safety, emergency resilience, and financial financial savings for each family. From the angle of the complete financial 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 financial 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.
