In December 2012, the Israeli Public Utility Authority (PUA) Board of Directors approved a new Net-Metering regulation for RES systems with implementation starting in 2013. The net-metering system is capped to support max. 400 MW capacity and replaces established in 2009 feed-in tariff scheme.
Self-consumers owning a RES system will be able to save their electricity retail tariff through self-consumption, but will be charged for grid "Balancing costs" estimated at NIS 0.015/kWh.
Generation surplus will be inserted into the grid and rewarded by "Credit" which will be reduced from the consumer's electricity bill at the end of the month (production surplus will offset with consumption surplus). For the use of the grid by the consumer, a tariff charge for "Grid integration costs" (e.g. NIS 0.013-0.014/KWh for high-voltage consumers) will be reduced from the value of credit to the consumer in accordance with the consumer's grid voltage line (high/low), and the time of grid-use. It will be possible to accumulate and transfer credit up to a maximum period of 2 years.
The PUA also approved the possibility of selling credit surplus to the grid and other consumers.