VZCZCXYZ0008
RR RUEHWEB

DE RUEHTV #1208 1580854
ZNR UUUUU ZZH (CCY AD93CA67 MSI7192-695)
R 060854Z JUN 08
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC 7018
INFO RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHAM/AMEMBASSY AMMAN 4240

UNCLAS TEL AVIV 001208 
 
SIPDIS 
SENSITIVE 
 
C O R R E C T E D COPY CAPTION 
Department for EEB/ESC/IEC and OES/EGC 
DOE for EERE and NREL - Pugh and Bruce 
Amman for ESTH Bhalla 
 
E.O. 12958: N/A 
TAGS: ENGR EINV IS
SUBJECT: Israel Passes Incentives for Household Solar 
 
¶1. (U) Israel's Public Utilities Authority under the Ministry for 
National Infrastructure approved a plan June 2 to buy electricity 
from independent power producers (i.e. private individuals or 
businesses) who install photovoltaic panel power systems on their 
roofs.  Both corporate and individual producers can receive NIS 2.01 
per kilowatt hour for feeding into the power grid.  (This equals 
approximately USD 0.60 at the rate of 3.35 New Israeli Shekels per 
USD.)  Individuals will be limited to generating up to 15 KW and 
businesses up to 50 KW. 
 
¶2. (U) Israeli solar power companies and equipment manufacturers 
were enthusiastic about the measure. The new incentive program makes 
photovoltaics economically viable for purchasers of equipment, 
manufacturers said, even given the high capital investment costs of 
such systems.  (Comment: Photovoltaic power nonetheless remains 
expensive; since individual power consumers pay 0.50 NIS per KW for 
electricity, the high feed-in rate implies a subsidy from the 
government-owned power company IEC.) 
 
¶3. (SBU) The measure to encourage alternative energy production 
reflects a breakthrough for the Arava Power Company, based at 
Kibbutz Ketura in the Negev desert.  Arava has fought for years for 
the right to feed into the national power grid, and has now opened 
the door to alternative - albeit expensive - power sources for 
Israel's baseload capacity.  Minister of National Infrastructure 
Ben-Eliezer praised the Authority's decision and said Israel must 
continue a revolution in favor of solar energy and energy 
independence.  Ben-Eliezer also called for comparable feed-in 
tariffs for wind generated power.  Israel has benefited for decades 
from mandatory solar hot-water systems for residences, which saves 
the country considerably on natural gas imports or electric power 
consumption. 
 
JONES