Electricity Authority to Discuss Reducing Payments to Solar Roof Owners
The tariff received by solar roof owners is expected to decrease starting in 2027, though the exact figures remain undetermined. The current rate, ranging from 48 to 54 agorot per kWh, is considered high and is passed directly to electricity consumers.
The Electricity Authority will convene this evening (Sunday) to discuss the compensation paid to solar roof owners, with a decision on a new tariff expected in the coming months. Currently, the rate is considered particularly high, standing at 48 agorot per kWh for small roofs, or 54 agorot including an "urban supplement" in major cities. While a decrease is expected as early as next year, the exact reduction remains unknown.
The Ministry of Energy is launching a campaign with a clear message: "Optimal reward tariffs for solar system installers are guaranteed only until the end of 2026." While the Ministry aims to promote solar roofs to boost local generation, the Electricity Authority is concerned about the financial impact on electricity consumers. The generous price paid to roof owners (48–54 agorot per kWh)—far higher than the 7–20 agorot per kWh cost for large-scale ground-mounted solar fields—is passed directly to consumers through electricity tariffs. Estimates suggest that fully implementing the Ministry's plan for 150,000 additional solar roofs will result in excess costs of nearly 900 million shekels, or approximately 2.5% of the electricity tariff.
The Ministry of Energy argues that this has significant value due to savings in land and transmission costs, as production occurs within existing built-up areas near demand zones. However, the cost remains a burden on all electricity consumers. According to the Electricity Authority, the new policy will be shaped by several guidelines: supporting energy goals, reducing the burden on all consumers who subsidize the regulation, and improving grid resource efficiency.
Another topic for discussion is the storage tariff. Currently, payments are "flat" throughout the day, but authorities may consider a higher tariff for selling electricity to the grid during peak hours to ease demand after sunset. Those who install solar roofs this year will "lock in" the current higher payment level for 25 years, meaning the state will pay these owners until 2051. This mirrors past commitments made to large solar producers, such as the Ashalim power station. For roof owners, this represents a final opportunity to secure high long-term prices for solar electricity production.
