In 2013, the Electric Authority launched a set of regulations called “The Net Metering Scheme”, which enables each consumer to set up a system for electricity generation for his own use, with no limitation on the duration of the contract and almost no limitation on the size of the system.
The solar challenge – different hours of power production and power consumption
Solar energy has many advantages: financial, environmental and social. But it also poses a significant challenge – the sun shines only….. during the day. In other words, electricity can be produced from solar energy only during daylight hours even though we also consume large amounts of electricity when it is dark. In fact, the evenings are the busiest in terms of electricity consumption, since that is when we all come home from work, prepare dinner, run the air conditioner, rest in front of the TV and heat the shower water before going to bed.
So how can we use the electricity that was produced during the day also in the evening?
Although storage capacity devices are improving worldwide, mainly due to the introduction of electric vehicles, prices of large domestic batteries are still expensive relative to their economic benefit. The addition of a domestic battery is certainly possible in Israel, but significantly increases the price of a solar system and therefore most homeowners prefer not to purchase them. The “Net Metering Scheme” was introduced in order to deal with the time gap between producing solar electricity and using it.
The solution – Net Metering
The scheme allows you to use the electricity produced by a solar system regardless of when it was produced. This means that you may also enjoy the electricity that the system produces at night. In this way, the electric bill can be reduced to almost nothing, while still being connected to the electric company (IEC) as a safety net, which functions as a big battery. If the electricity that is produced is more than the electricity that is consumed, the surplus energy goes to the national electricity grid and credit is accumulated for later use from IEC for up to two years. At the end of the period, if unused credit remains, the energy can be sold to IEC at the prevailing production rate. If the produced electricity is less than was consumed, the IEC will be paid according to the domestic electric rate.
That’s it, all barriers were removed
In addition to the “Net Metering Scheme”, all of the barriers to installing a home solar system have been removed, making the process very simple, cost effective and worthwhile. For the vast majority of private homes:
- The need for a building permit has been canceled;
- The asset appreciation tax was canceled;
- The municipal tax was canceled
- The requirement to open an income tax file has been canceled;