The Netmetering regularization for generating solar energy is designed for consumers who wish to reduce electricity costs by self-generating electricity, and who have available rooftop surfaces to build a solar system on. The regulation enables setting electricity prices for 25 years in advance and guarantees green and cheap electricity, which is untouched by fluctuations in electricity cost. The regulation provides a solution for excess production of electricity (such as on weekends and holidays) using a mechanism which credits the excess production. The credit for production of excess electricity is a monetary credit, which allows one to enjoy both worlds: decrease peak time consumption while receiving high credit for production during these hours.
The increase in electricity prices along with the decrease in solar energy systems’ prices provides a high return on the investment when building the system. The savings on electricity expenses will result in a return for the cost of the system in less than 10 years, after which the consumer will enjoy free electricity for approximately 15 additional years. In financial terms, the average annual return will be between 10 – 12%, which is a very high return for an investment in infrastructure with no project-finance.