Israel sees spike in solar energy system sales amid electricity price spike

The increase in electricity rates in 2022 led to an 18% increase in the installation of solar energy systems on the roofs of private houses, with 4,500 systems installed in the past year.

 The system can be powered using solar and wind energy - providing off-grid operation. (photo credit: PR)
The system can be powered using solar and wind energy - providing off-grid operation.
(photo credit: PR)

The increase in electricity rates seen in Israel in 2022, in addition to another spike expected in the near future, resulted in an 18% increase in the installation of solar energy systems on the roofs of private houses this past year.

In the past year, 4,500 such systems were installed. According to the government's decision, electricity production from renewable energy will make up 20% of all electricity consumption by 2025 and by 2030, 30% of all electricity consumption in Israel. 

As of today, we are still far from these goals. If in January 2023 there will indeed be an increase of 8.2% in electricity prices, more demand to install solar systems in the private sector is expected.

Installing a home solar energy system on roofs is economically viable. Installing a system in a roof area of 120 square meters costs about NIS 80,000 and generates an expected income of about NIS 14,000 annually, and a yearly return of 14%. So, the investment cost is returned within six and a half years.

The Enerpoint energy company is preparing for the increase in demand for installing solar energy systems, and is recruiting dozens of sales agents and installers. 

 Solar panels (illustrative) (credit: FLICKR.COM) Solar panels (illustrative) (credit: FLICKR.COM)

At the beginning of the year, the company was acquired by Colmobil Group. The major automobile importer entered the field in light of the increase in demand for energy in general and alternative energy in particular.

Nir Pelag, the CEO, says that higher electricity rates have increased the viability of investing in solar energy. Property owners enjoy passive income, and these systems are green systems. These are double-digit annual returns with a low-risk investment.