Small solar installations are defined as those producing up to 50 kilowatts, located on top of or near residential buildings or undeveloped areas in urban and agricultural spaces. These facilities have many advantages, chief among them high installation flexibility and relatively low construction cost, resulting in efficient use of space for generating renewable energy and increased energy independence. Expanding the use of small installations to the maximum can make a significant contribution to energy production at the national level and to the reduction of greenhouse gas emissions.

Many of the limitations to the construction and operation of large solar farms, such as land acquisition and energy transmission infrastructure, do not pose a problem for small solar installations. Moreover, the "dual use" method promoted in recent years turns consumers into producing consumers or "prosumers". The construction of small facilities takes place in developed areas and therefore should simplify planning processes. In small systems, the initial capital requirement is low and the cost is spread among many "entrepreneurs", for some of whom the investment may be attractive given the conditions detailed in this study. These entrepreneurs benefit from increased energy independence, and the potential for financial return on investment within an average of seven years from installation. Establishing dedicated facilities for shading with the installation may even reduce energy consumption in buildings, or at least create a positive side-effect of more shading and reduced local heat island effect.

The purpose of the study is to present the status quo in Israel regarding the establishment of small solar facilities, reviewing existing policy and regulation and characterizing the barriers that currently prevent significant expansion of these facilities on the roofs of private, business and public buildings. The main objective of the study is to review regulatory and policy tools from around the world in order to learn from them and examine the possibility of their adaptation to Israel.

In order to promote small-scale energy systems it is important to advance policies that will allow built-up areas to be exploited for energy generation, to reduce bureaucratic barriers and make the systems economically viable for small entrepreneurs.