Israel Green Solutions

Over the last few months there has been a lot of activities in Israel to promote the installation of Home based Solar panels.

A recent posting to a community group that I am subscribed to went something like this ……. “We have done the leg work , have met with 5 different companies and found the company with the largest output of these systems with the most experience and then got the best price.”

Sounds good so far…….

“Join the group. you need at least 28 square meters facing the south
approx. does not need to be direct. With 40 square meters you can put in the largest tax free system up to date.”

Still sounds reasonable and something worth looking into – but wait here is the clincher…..

“Your money will be returned in 8.7 years“……… 8.7 years that’s Eight years and seven months. At least in my book that is a huge amount of time to have to wait for a realistic Return on Investment (ROI) on your solar panels.  This also assumes a best case scenario. What if the system needs to be fixed over that time period.  What you think they won’t break? Wont need any maintenance over 8.7 years? Of course they will I have a solar panels on my roof  to heat my hot water (as most Israeli homes do) and I have had to replace panels more then once.

Now lets look at technology advances – without even looking at google I am sure that as we speak new,  improved and much more efficient systems are being developed and I am sure they won’t take 8.7 years to become available. I, as most people can’t find too many electronic components in my house that have not become obsolete in 8.7 years.  For example I have replaced my computer 3 times in that many years and each time I have gotten significant performance improvements for comparable money. Again this further makes me wonder how I could commit to 8.7 years just to break even on a solar system.

So now that we have established that 8.7 years is too long a time to recoup your investment – what can be done about it?

Lets take a minute to look at who benefits from installing solar panels on your home. Obviously you benefit as you lower your energy cost and what you are paying the electric company. Believe it or not the electric company benefits by getting more output from their grids. Over the last few years the IEC (Israel Electric Company) has suffered from peak time brown outs and a growing inability to support the growing energy need. Lastly lets not forget the government, the Israeli government who owns almost all of  the IEC. 

Now lets take a look at other countries. In the US alternative energy subsidies are widespread and growing. In the UK the government is willing to pay up to 50% of the initial cost of the solar panels (and that is in a country not known for its sunlight).

If you took this model in Israel and if the government was willing to subsidize the Solar panels then perhaps we could cut the ROI to something more reasonable and thus making it a more viable option.  I think that the Israeli Government must make this a matter of policy to find innovative ways to encourage alternative energy and to make it viable.