EVALUATION OF PV NET METERING SYSTEM POLICIES IN PALESTINE USING PESTLE MODEL CASE STUDY: THE NORTHERN ELECTRICITY DISTRIBUTION COMPANY

Abstract

Palestine faces a major energy security challenge due to its heavy dependence on imported electricity which makes the energy sector directly affected by political and economic issues and indicates the need to develop domestic energy sources, especially solar energy systems. Based on data from distribution companies the total installed capacity of grid connected solar PV systems in Palestine reached approximately 205 MWp by 2024 with continued growth, especially by rooftop PV systems. Under these conditions the Net Metering scheme is one of the most important mechanisms applied to increase the adoption of solar PV systems by help prosumers to generate electricity locally, rooftop Net Metering capacity reaching about 40 MWp by 2023 in Palestine. Due to this growth, it is necessary to evaluate how the system operates and the factors that affect it. The study is based on real operational data from the Northern Electricity Distribution Company for the period 2022–2024, and PESTLE based questionnaires designed for five main stakeholders then analyzed using the Likert scale and SPSS. The PESTLE analysis indicates variation between stakeholders with average ratings from 3.2 to 3.9, and the revenue losses led some distribution companies to restrict or stop accepting new Net Metering projects. The study also presented some recommendations related to PESTLE dimensions that affect Net Metering adoption, particularly the economic dimension. The results showed that prosumer net profitability between 200 to 670 NIS/kWp/year, while distribution companies lost opportunity between 40 to 320 NIS/kWp/year on current Net Metering scheme. Based on these results, the study developed the Balanced Net Billing Scheme, which depends on a sector based export purchase tariff and maintains a payback period of around 5 years for prosumers. The results of this proposed scheme 300–550 NIS/kWp/year prosumer net profitability and positive utility profitability from 0 to more 300 NIS/kWp/year shifting from financial loss to financial gain.