Electricity prices in Israel rose by 8.6% in early August, after a 2.2% increase in electricity prices, and in addition to the rise in global oil prices, it is expected that electricity prices will continue to rise.
Against the background of rising electricity prices and oil prices, the demand for solar power generation for households in Israel has surged, and there has been a scramble for installation.
Driven by market demand, several companies operating in the solar market have adopted the economic model of installing systems at their own expense, while guaranteeing current income and return on investment.
Among them, Enerpoint, acquired by car importer Colmobil, is one of the largest solar system installers, and its development has been greatly facilitated.
It is estimated that the first-year power generation of a home solar system installed on a 120-square-meter flat roof in the country can reach 28,927 kWh. The client's expected annual income is NIS 13,885 per annum, with an annual rate of return of 14%. The investment in system installation is recouped in 6.5 years.
According to Enerpoint data, installations of solar systems using PV technology in private Israeli homes increased by 12% in the first half of 2022 and are expected to rise to more than 20% by the end of this year.
This trend showed a marked increase in July and the first few days of August.
This trend is also linked to the government's decision to source 20% of electricity in 2025 and 30% in 2030 from renewable energy sources.
Nir Peleg, CEO of Enerpoint, said: "High electricity prices make the solar sector a worthwhile investment that can generate passive income for owners. They are green systems with double-digit annual returns and very low risk."