As reported in "Globes," the Israel Land Council yesterday decided that land would be allocated for photovoltaic solar energy projects at a uniform price to be set by the Israel Land Authority (ILA) in the NIS 15,000-25,000 per dunam (NIS 60,000-100,000 per acre) range. A competitive tender will be held for the price of electricity demanded by the bidder of the Public Utilities Authority (Electricity).
Following a government decision on the matter aimed at encouraging renewable energy projects and lower electricity rates, the Land Council has changed the method of determining the price of land in allocations for solar energy. A uniform price will be set for land allocations for renewable energy production facilities, depending on the type of venture, while a competitive procedure will be held for the price of electricity.
Payment for the land will be considered lease fees capitalized over the entire lease period, provided that the rate does not exceed the maximum rate set by the Public Utilities Authority (Electricity) in coordination with the ILA.
Since the arrangement is an innovative one with competition over the electricity rate, the Land Council authorized the ILA to set a uniform land price. The uniform price for land in a photovoltaic project will be set in the NIS 15,000-25,000 per dunam range before the competitive process is published.
The Land Council also decided that the ILA would sign the permit for building a solar installation on water reservoirs that employs the net metering method. This method is a consumer arrangement by the Public Utilities Authority (Electricity) enabling the consumer to produce and consumer his own solar electricity. No fee will be charged for this permit, similar to the Public Utilities Authority's (Electricity) policy on facilities placed on existing roofs.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 17, 2017
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