Solar Panel Project to Bring Financial Benefits to Public Housing Residents

Do you live in buildings that are part of public housing? If so, you might soon take part in a unique pilot project where solar systems will be installed on the roofs of some buildings. The result will be particularly rewarding, as the building residents will receive a share of the profits.

While public housing is indeed owned by the state, so the profits were theoretically supposed to be transferred to it, in the framework of the new pilot, the Ministries of Housing and Welfare announced that they would allocate part of the profits for the benefit of the residents living in those buildings, which will make the pilot particularly rewarding.

So how exactly will things run, who will be eligible, and how will the solar roofs benefit us? We discussed this with Dr. Chen Cohen from the Department of Public Policy Management at Ben-Gurion University, who led the research that resulted in the project that is about to come to fruition very soon.

Rooftop Project

Amid reports on the high cost of living and frequent price increases, it is pleasant to hear from Dr. Cohen about the new project where the state intends to assist the lower-income residents and share significant profits with them.

"It all started with research we conducted at the university," explains Dr. Cohen. "During which, we sought to examine the feasibility of establishing solar power systems on the roofs of public housing. Our claim was that choosing to install the solar systems specifically on buildings where people of low socioeconomic status reside could lead to increased distributive justice and serve as a mechanism to reduce energy poverty."

But what led you to deal with this topic precisely at this time?

"The engine for this interest arose in 2020, when an amendment known as 'Amendment 90 to the Real Estate Law' was made, which decided it is possible to proceed with 66% consent from apartment owners instead of 100% to make changes to a building. This step basically opened up possibilities for installing solar panels on roofs of buildings owned by the state. Until then, such an option wasn’t available, as almost every public housing building had one or two privately owned apartments, and a single opposing tenant could stop the project. With the new law, it became clear that the blockages were removed, and many buildings turned out to be potential candidates for solar panel installation."

Dr. Cohen notes that while they sought to examine the feasibility of the matter, they used tools from "game theory" and examined how the move would impact all involved parties, which are the Ministry of Housing, the Ministry of Welfare, and the residents. "When we looked at the project from the eyes of the Ministry of Housing alone, we saw primarily disadvantages, as the roof space in public housing is not large, and in terms of feasibility, it is much more preferable to install the solar panels on villa neighborhood roofs. But once we added the considerations of the Ministry of Welfare and the residents into the equation, we reached different conclusions. Because we checked not only the economic benefit but also the environmental and social benefit."

The Project Benefits Everyone

Dr. Cohen continues to elaborate: "The team I operated met with all the stakeholders in the arena, we conversed with them, and from this interaction, we were impressed that the population living in those buildings, although economically weak, is certainly interested in being a partner with the state in the project, and if a need for guidance arises, the residents will gladly do so. Even in the government offices that initially opposed including the residents as partners, they understood the potential benefits, and thus it was decided to launch a unique pilot in which dozens of public housing buildings will participate in the solar panel installation project. Each building will eventually receive a percentage of the amount derived from the project, which can be used for external renovations of the building or even distributed among the residents who will become partners with the state."

"By the way, there's also an indirect benefit here, as there is a global phenomenon called 'energy poverty,' meaning that people cannot afford electricity prices to properly climate control their home. Now the project will help the residents escape this phenomenon. Thanks to the panels that will be installed on roofs and their painting in white, the apartments will heat up less, and consequently, residents will need less energy. This will certainly help them, and in truth, it is what ultimately convinced the ministry’s CEO to sign the check."

Can you tell us which buildings will participate in the project, and how much money will the residents receive?

"At this stage, things are still in a tender and not yet clear, but we are talking about several dozen buildings, mostly in the southern region, where each building's profit will reach thousands of shekels. If only the pilot succeeds, then the project will certainly expand significantly, and many more buildings will join."