The recent Renewable Energy Summit, held earlier in July, revealed that independent electricity producers may not be as keen to sell solar power-based electricity to the State, saying that their incentive fees are "unrealistic."
Ahead of foreseen high demands for electricity during the summer months and in an effort to thwart an "electricity drought" the government approved a quota of 30 megawatts for private electricity producers, who benefit from solar energy production, but so far, applications have been submitted for the production on only 8 megawatts.
Many private producers say that they are unlikely to be able to have their systems up and running by August 8, when the incentive fees will drop from NIS 0.71 to NIS 0.65 ($0.17 and $0.16 respectively).
"The rates are unrealistic, but I'm sure that even with NIS 0.65, the quota will eventually be met," Danny Danan, CEO of Enerpoint Israel said.
Oded Agmon, head of the Electricity Regulation Authority, said during the summit that solar energy will give the Israeli market the necessary push to better incorporate renewable energy sources, such as biogas and wind turbines.
Michal Franko, of the Water and Energy Ministry, said that the ministry believes that the government's goal of having 5% of the energy market based on renewable energy sources by 2014 is attainable, but will require additional quotas amounting to 500 megawatts.