Houston, we have lift off
We all knew if was being discussed. We knew there were major objections and obstacles, and we knew it was near, so, so near, but FINALLY it is here! Of course, I’m referring to the official approved solar feed-in tarrif or 2.01 NIS/kWh, which ~4x the current price of electricity here in Israel.
How will it work? Starting July 1st, when I install a PV system at home, the electric company will buy all electricity generated at the rate of 2.01, guaranteed for 20 years. In the evening (or when there is no sun), we will purchase electricity for the going rate. At the end of the month, a balance is paid (although, I haven’t understood what happens if I’ve generated more electricity that I’ve used – do they pay me???). Essentially, the same principal as Spain and Germany.
So does this make PV installations in Israel economical? According to the government publications, this should adopters a 14% IRR over a 20 year period. So not only the satisfaction of using a renewable, clean resource, but also a worthwhile investment.
Let the sun shine!
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