After several delays, it was finally set that the Israeli cabinet would meet December 28 to discuss a proposal to declare the
The National Infrastructure Ministry put forth a proposal that would codify the ministry’s plan to build a new solar power plant every year from 2010 to 2020. Other incentives would also be included that would enable solar power companies and their investors to make payment for the solar plants and panels.
A feed-in tariff for medium-sized fields had been the major obstacle hindering large-scale production of solar energy fields. A feed-in tariff of
"This is one of two milestones that foreign investors are looking at closely before pouring billions of dollars into the Israeli economy," Arava Power Company (APC) President Yosef Abramowitz told the The Jerusalem Post.
"The proposed decision offers incentives of up to 24% of investment – without that, any investment is shaky," APC vice president of government relations & business development David Hayon added in a separate interview to the newspaper.
The decision would also speed up the depreciation value of solar panels from 14 years to 4 years, Abramowitz added, which would lower the tax burden on the companies.
The other hurdle, according to Abramowitz – assuming this decision gets passed – is the tax incentives and business incentives may require new laws because they change the conditions of some laws already on the books.
"That would add a whole additional layer of political processes," he said.