Israel raises tariffs for commercial PV by up to 33%

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Israel's Electricity Authority has updated the tariff paid for owners of rooftop PV for surplus power sold to the grid. In addition, the regulator has updated the regulated tariff for electricity sold to the grid from storage systems during evening peak demand.

“Although the Israeli regulation enables the construction of rooftop plants of up to 630 KW, our analysis showed that the majority of applications are for plants of up to 200 KW,” the Electricity Authority said in a statement. “It seems that the tariff, last updated in 2021, has no longer incentivized the construction of larger plants. Therefore, we decided to update it upwards.”

According to the regulator’s decision paper, the tariff has been changed according to a set of formulas. However, it did offer examples for the change. For 630 kW projects, the tariff will increase by 33%, from ILS 0.2436 ($0.065)/kWh to ILS 0.3248/kWh.

The tariff for 500 kW rooftop PV plants will increase by 30%, from ILS 0.2577/kWh to ILS 0.3353/kWh, while 300 kW projects will get a tariff increases of 22%, from ILS 0.3035/kWh to ILS 0.3693/kWh. Rooftop arrays of 200 kW in size will get an increase of 15%, from ILS 0.3328/kWh to ILS 0.3821/kWh. The tariff for 100 kW projects will remain unchanged at ILS 0.4205/kWh.

For owners of storage systems, the tariff for peak demand will depend on the season and the capacity of the attached rooftop PV. Owners of rooftop PV arrays up to 300 kW in size will be able to sell electricity for ILS 1.3424/kWh during the summer, for ILS 0.932/kWh during the winter, and for 0.3721/kWh during fall and spring. Owners of batteries with PV plants ranging in size from 300 kW to 630 kW will be able to sell power for 1.2011/kWh, 0.8839/kWh, and 0.3329/kWh, respectively.

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