What is “net metering”?
A net meter is a new, revolutionary arrangement of the electric network, by which electric consumers can, for the first time in Israel, install solar devices while relying on the electric grid as a backup when the device is not creating electricity. The net meter arrangement allows the consumer with a solar power system installed to connect to the electric grid via the structure to provide his electricity needs. This enables the use of innovative technology an alternative to the power created by the electric company, thereby minimizing/eliminating the monthly electricity payments.
At times when the solar power system is creating more electricity than necessary (such as on weekends), the surplus power flows to the national power grid, and the consumer accumulates credit calculated via the meter's record of load and time of use.
When the system is not creating electricity (such as at night), the accumulated credit is offset by the use of electricity in accordance with the price of electricity at the time of consumption. Meaning, that it is, in fact, possible to eliminate electricity bills.
For whom is it suitable?
The new arrangement is suited for businesses looking to save on electrical expenses. However, it is not suited for buildings with unsubstantial electrical consumption. It is not possible to erect the device on a structure with physical limitations such as: excess shade, asbestos, or regulatory restrictions including irregular building or usage, which will prevent the issuing of a building permit. It is recommended to hire a professional expert to determine the compatibility of the device with the structure.
Forecasting electricity prices in the future
Opposing factors affect the cost of electricity. On the one hand, the need to cover the electric company's debts and the foreseeable rise in the price of inputs are likely to raise the cost. On the other hand, natural gas that will soon arrive in Israel will lower the price of fuel, therefore it's difficult to foresee the trend over the next 25 years. A conservative calculation would indicate that the price will likely rise by about 1% each year, realistically.
Very Important - A solar device allows you to determine the cost of electricity!
Economic Feasibility Analysis
The creation of clean solar power contributes to a clean, quality environment, but not just that. There are also multiple economic advantages by joining the net monitoring arrangement:
Protection from rising electricity prices
The exact calculation is performed with the help of a business model that Solaretz's representatives will happily provide the customer.
A solar device creates electricity using a photovoltaic panel, which converts the the energy of the sun's light into electrical energy and a converter that transforms the direct current into an alternating current. For every 1kW (kilowatt) that is installed in Israel, 1,700kWh (kilowatt hours) are produced per year. Each year, the output of the device lessens by roughly 0.5% at most.
The Time of Use rate is the price per kWh. The average low voltage Time of Use rate is roughly 0.53 NIS per kWh. The rate is calculated by averaging the rates at peak, mid-peak and off-peak times during which a solar device is creating electricity.
The savings amount to over 20% at the time of returning the loan, and over 75% after its return. This amounts to an average saving of 40%.
An extra cost is that which is paid to the electric company: 0.015 NIS for availability per kWh created, 0.03 NIS per kWh stored in the grid (roughly 30% of the total production, depending on the consumer profile), such that the expected expenditure is roughly 0.025 NIS per kWh.
Accelerated depreciation for solar panel systems can be applied in 2013.
Remember- in the field of solar energy, those who join early will benefit!
The net monitoring arrangement is limited in quantity to 200 (MW) and time (until the end of 2013). In the year 2014 there will be an additional quota, and due to high demand it is expected to run out quickly. From the time of registration, the customer will have 180 days to erect and install a low voltage device or 365 days for a high voltage device.
It is recommended to examine the opportunity, and should it seem fitting – to arrange a building permit and sign up without delay!