Total installed solar photovoltaic (PV) capacity in Israel was approximately 4,524 MW. ⁷

Israel aims to significantly increase its solar panel production capacity, targeting 17 GW of installed solar capacity by 2030. ⁸

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• Natural gas – $0.019/kWh
• Coal – $0.088/kWh
• Solar energy (for large solar fields) – $0.033/kWh
• Solar energy (for rooftop installations) – $0.13/kWh

In 2022, the distribution of electricity generation sources in Israel was as follows: ⁴¹¹¹²

• Natural gas: 65%
• Coal: 21.8%
• Renewable sources: 12.5%

Israel’s electricity grid is known for its high reliability during peacetime, with an average daily availability of 24 hours and power outages typically lasting less than three hours per year. Designed with built-in redundancies, the grid is equipped to withstand various challenges, making nationwide blackouts highly unlikely. While localized outages may occur in extreme situations, the overall infrastructure is robust and well-prepared for emergencies. ¹³

In 2021, approximately 4,500 residential solar systems were installed, and this trend continued into 2022 with an 18% increase, reaching 5,310 installations. ¹⁴

With the implementation of new regulations in 2023 mandating solar panels on new detached houses and non-residential buildings, Israel is projected to see the installation of tens of thousands of additional solar systems in the coming years. ¹⁵

Currently, Israel has over 150 operational solar farms. ¹⁶

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The off-grid solar market in Israel is relatively small, with an estimated capacity of several dozen megawatts deployed in remote areas.

There are currently four major off-grid facilities for self-consumption, including notable installations such as the Noble Energy Mediterranean 31.85 MWp unit at the Tamar gas field, the Rotem Amfert 16.7 MWp unit, the Ben Gurion Airport 12.4 MWp facility, and the Nesharim Energy 2014 facility rated at 48.3 MWp. Growth in the market is anticipated during 2023-2029, driven by increasing demand for renewable energy solutions in isolated locations.

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The on-grid solar market in Israel is experiencing rapid growth, driven by the country’s renewable energy goals. By the end of 2023, the installed capacity of renewable energy reached 5,903 MW, reflecting a 23% increase from the previous year’s 4,795 MW. Solar energy accounts for about 45% of the renewable output, and solar photovoltaic systems remain central to Israel’s renewable energy strategy, comprising the majority of new installations in 2023.

Projections estimate that solar capacity will rise to 17,145 MW by 2030, supporting Israel’s goal of 30% renewable energy in its electricity mix.

The country also had 380 MW of net-metered solar capacity by early 2024. However, the recent discontinuation of the net metering scheme for new systems may impact future installations, although the regulation, introduced in 2013, had previously encouraged residential and commercial solar adoption by offsetting electricity costs.

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• The average monthly salary in Israel is approximately $3,650.
• Solar Energy Systems Engineer: the average monthly salary is approximately $4,810.
• Solar Energy System Installer: the average monthly salary is approximately $3,702.
• Solar Energy Installation Manager: the average monthly salary is approximately $4,758.

The current population of Israel is 9,449,376. ²⁴

Estimate for Factory Rent ²⁵

The average monthly rent of industrial properties and warehouses in Israel is approximately $12-$44 per square meter.

Industrial Electricity Rates ³

The average electricity price for business users in Israel is approximately $0.093 per kWh.

Water Costs ²⁶²⁷

The current water tariff in Israel is structured as follows:

• Rate A: $2.06 per cubic meter, up to 7 cubic meters per person for 60 days
• Rate B: $3.31 per cubic meter, over 7 cubic meters per person for 60 days for residential consumers.
• Business Rate: $3.31 per cubic meter.

Starting January 1, 2025, water prices will increase by 3.4%, affecting all consumer categories.

Salaries and Wages ²¹²²²³

Monthly salaries of workers in solar industry in Israel ranges from $3,702 to $4,810, depending on the position.

Rent for Office Space ²⁸

The average monthly rent for commercial office spaces in Israel is approximately $35.5 per square meter per month.

Insurance ²⁹

The average spending per capita for non-life insurance in Israel is projected to reach $1,105 in 2024. This reflects a growing trend in the market as consumers increasingly seek comprehensive coverage options, adapting to unique local conditions, including geopolitical factors that influence demand for specialized insurance products.

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Energy Mix

Israel’s energy mix is increasingly shifting towards natural gas and renewables. As of 2022, coal generated only 21.8% of electricity, down from 61% in 2012. The goal is to achieve 70% natural gas and 30% renewables by 2030, with solar expected to account for about 90% of renewable energy production.

Key Institutions 

The Israel Electric Corporation (IEC) is the primary state-owned utility, responsible for generation, transmission, and distribution. It currently generates approximately 61% of the country’s electricity. A structural reform initiated in 2018 aims to decentralize IEC’s operations and enhance competition.

Export / Import

Israel has transitioned from being a net importer to an exporter of natural gas due to significant offshore discoveries. However, it remains an “electricity island,” with no grid connections to neighboring countries.

Policy Goals and challenges

The Israeli government targets 30% renewable energy by 2030, with a focus on solar power. Plans include increasing solar capacity significantly and enhancing storage capabilities to support renewable integration.

However, Israel faces challenges such as limited land for solar farms and the need for upgraded infrastructure. Despite ambitious goals, reports indicate that Israel may fall behind in emissions reduction targets due to ongoing reliance on natural gas.

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Mandatory Installations:

• Non-residential buildings: Any new building with a roof area exceeding 250 square meters must install a renewable energy facility.
• Residential buildings: Detached homes with roofs over 100 square meters are required to have photovoltaic systems with a minimum capacity of 5 kilowatts.
• Height Restrictions: Non-residential buildings under 42 meters must install PV capacity equal to half their rooftop area divided by 10.

Exemptions and Flexibility:

Certain exemptions apply, allowing city engineers to waive requirements for buildings with unique architectural features or future construction plans.

Regulatory Oversight:

The Ministry of Energy and the Electricity Authority oversee compliance with these regulations, ensuring that all new buildings meet the mandated solar panel installation criteria.

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The Israeli government offers several tax benefits for those investing in solar and renewable energy technologies:

Income Tax Exemptions

Israel provides income tax exemptions on profits from renewable energy production, such as solar power, for up to five years, allowing investors to reinvest their earnings into green projects.

Investment Incentives

The government supports renewable energy initiatives with grants, subsidies, and discounts on solar components, reducing the initial cost of installation.

Property Tax Benefits

Installing renewable energy systems like solar panels can lower property taxes, adding value to your home and promoting sustainability.

Public-Private Partnerships: Initiatives like the I-REC system enhance market participation and facilitate power purchase agreements, for example, between two public solar developers: Doral Electricity and Shikun Binuy, and one of Israel’s largest real estate groups, Melisron Ltd., as the end consumer.

Premium Payments: Small-scale electricity producers receive premium payments for the energy they generate, incentivizing solar production.

Net Metering: Options for projects up to 15 kW to benefit from net metering arrangements, allowing users to offset their electricity costs.

Grants and Subsidies: Various financial assistances are available to offset installation costs, making solar energy solutions more accessible.

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Ashalim Solar Thermal Power Station

• Capacity: 121 MW
• Location: Negev Desert, near Ashalim
• Investor: EDF Renewables Israel
• Details: This solar thermal power station is one of the largest in Israel, utilizing a central tower design with heliostats that focus sunlight onto a receiver atop the tower. It contributes significantly to Israel’s renewable energy goals.

Ketura Sun

• Capacity: 4.95 MW
• Location: Arava Valley, near Eilat
• Investor: Arava Power Company
• Details: Ketura Sun is a pioneering photovoltaic solar farm that was one of the first grid-connected solar power plants in Israel, commissioned in 2015. It serves as a model for future solar projects in the region.

EDF Solar Power Plant

• Capacity: 300 MW
• Location: Negev Desert, near Dimona
• Investor: EDF Renewables
• Details: This project is set to be Israel’s largest solar power plant, covering approximately 3 square kilometers. Construction is scheduled to begin in 2026 and aims to contribute significantly to Israel’s renewable energy goals.

Enlight Renewable Energy Solar and Storage Cluster

• Capacity: 254 MW (solar generation) and 594 MWh (storage)
• Location: Various locations across northern and southern Israel
• Investor: Enlight Renewable Energy
• Details: This project consists of 12 installations built in cooperation with agricultural communities. It began commercial operations in 2023 and accounts for 50% of all clean power produced under Israel’s newly deregulated power market.

Doral Group Israel Solar PV Park

• Capacity: 800 MW
• Location: Negev Desert
• Investor: Doral Renewables
• Details: Currently in the permitting stage, this project is expected to enter commercial operation in 2026.

Solar Farms Along Gaza Border (Projected)

• Capacity: 200 MW (projected)
• Location: Along the Gaza border
• Investor: Israeli government and private sector partnerships
• Details: This ambitious project aims to develop solar farms along the Gaza border, focusing on enhancing energy security and promoting renewable energy generation in the region, while reducing the reliance on fossil fuels.

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Doral Energy

• Headquarters:Tel Aviv, Israel
• Website:https://doral-energy.com/en/
• Details:Doral Energy is a leading developer of renewable energy projects in Israel, focusing on solar energy. The company is involved in various large-scale solar projects, including the development of some of the largest solar parks across the country: Negev, Shapir and Kiryat Gat Solar Park.

Shikun & Binui Ltd

• Headquarters:Tel Aviv, Israel
• Website:https://www.shikunbinui.com/en/
• Details:This construction and infrastructure company has significant investments in renewable energy, particularly solar power. They are involved in multiple solar projects, including the Ashalim Solar Thermal Power Station.

Enlight Renewable Energy

• Headquarters:Tel Aviv, Israel
• Website:https://enlightenergy.co.il/
• Details:Enlight focuses on developing, financing, and operating renewable energy projects. They have a diversified portfolio that includes solar and wind power generation with energy storage solutions to create a resilient and efficient renewable energy system, optimizing energy production and ensuring a continuous power supply.

EDF Renewables

• Headquarters:Paris, France
• Website:https://www.edf-re.com/
• Details:A subsidiary of EDF Group, EDF Renewables is involved in significant solar projects in Israel, including the Ashalim Solar Thermal Power Station and other large-scale solar PV plants.

Arava Power Company

• Headquarters:Kibbutz Ketura, Israel
• Website:https://aravapower.com/
• Details:Arava Power is known for developing Israel’s first commercial solar field, Ketura Sun. They focus on photovoltaic systems and have numerous projects throughout the country, totaling 570MWp of built and under construction PV solutions.

Energix Renewable Energies Ltd

• Headquarters:Tel Aviv, Israel
• Website:https://www.energix-group.com
• Details:Energix is a prominent player in the Israeli renewable energy market, operating multiple solar and wind projects, managing the full lifecycle, from the planning and construction stages through their operational activity.

SolarEdge Technologies

• Headquarters:Herzliya, Israel
• Website:https://www.solaredge.com/en
• Details:SolarEdge is a global leader in smart energy technology and solar inverter solutions. Their innovative products enhance the efficiency of solar installations worldwide.

Econergy Renewable Energy

• Headquarters:Tel Aviv, Israel
• Website:https://www.econergytech.com/
• Details:Econergy focuses on developing and managing renewable energy projects, particularly in solar and wind sectors. They are actively involved in financing and operational management of solar projects, totaling 407 MW projects in commercial operation and 834 MW projects under construction.

BELECTRIC Solar & Battery GmbH

• Headquarters:Kolitzheim, Germany
• Website:https://belectric.com/
• Details:BELECTRIC specializes in large-scale solar plants and battery storage systems. They are involved in several significant solar projects in Israel.

BrightSource Energy Inc.

• Headquarters:Oakland, California, USA
• Website:https://brightsourceenergy.com/
• Details:BrightSource focuses on developing concentrated solar power (CSP) technology and has been involved in major solar projects aimed at enhancing renewable energy production in Israel.