Israeli residents will now be able to disconnect from the grid and generate
electricity independently, with solar panels in their yards channeling
electricity directly into their homes.
“Tired of paying for electricity?”
read a message from the Public Utility Authority on Tuesday afternoon. “Produce
your own electricity!” The PUA confirmed in a plenary hearing on Tuesday morning
an arrangement that will enable all residents to reduce their consumption and
save money on their electricity bills by implementing private renewable energy
production facilities in their homes.
“The State of Israel joins more
than 40 US states and many other countries in Europe and around the world in
transforming renewable energy into an accessible and useful tool for private
electricity consumers, without imposing any additional costs on the economy,”
the PUA announced in a statement.
Consumers who choose to join in this
arrangement will be able to deduct the electricity they produce for
self-consumption from their national grid electricity bill, balancing out their production surplus against their grid consumption
Each consumer will be able to oversee their own “net meter,”
which displays the tariff rate, load on the national network, and hours of use.
With that information, the consumer can decide when they want to produce their
own electricity for their homes.
When their renewable energy facilities
are generating more electricity than the consumer is using, the consumer can
receive credit on their electricity bill. At the end of each billing period, the
electric company will offset the amount of energy that the consumers produced
with the amount of grid energy that they consumed, and charge
According to the PUA, drops in the construction costs of
solar power-generation facilities have allowed the electricity sector to reduce
and cancel subsidies for renewable energy, which is now being integrated into
the network without as much government support as in the past.
the first step in realizing the government’s decision 3484 and promotes a future
of clean and renewable energy in Israel,” the PUA statement said.
arrangement also allows for fewer regulations in erecting small solar
infrastructure, since the proposed mechanism does not require a production
license, the PUA added.
By encouraging use of the net meter, the
government can also promote the establishment of renewable energy production
facilities without imposing the costs of such facilities on electricity
consumers, the PUA explained. This, in turn, further enables the technology to
become a viable alternative for electricity generation, the authority
Eitan Parnass, director of the Renewable Energy Association of
Israel, praised the decision to allow at-home renewable energy electricity
“This is the beginning of a revolution, in which we can enjoy
the relative advantage of the Israeli sun over other that of other countries in
the world,” he said. “Green solar electricity production is more true to the
economy, and in the long run will lead to Israel’s energy independence.”