Total installed solar photovoltaic (PV) capacity in Palestine was approximately 192 MW. ⁹

By 2035, Palestine is projected to achieve a total solar panel production capacity of approximately 630 MW in the West Bank and 70 MW in Gaza. ¹⁰

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• Diesel electricity generation- $0.29– $0.46/kWh
• Solar energy – $0.07–$0.11/kWh

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• Gaza Power Plant (diesel): 4%
• Solar Energy: 5%
• Import from Israel: 87%
• Import from Jordan and Egypt: 4%

The average daily availability of electricity from the national grid in Gaza is severely limited, typically ranging from 4 to 6 hours per day. This shortage is exacerbated by ongoing crises, including the current Israeli aggression, which has resulted in the intentional cut-off of electricity supplies and the destruction of solar energy stations. The Gaza Power Plant’s operational capacity is often compromised, leading to rolling blackouts and reliance on electricity imports from Israel and Egypt. During periods of fuel shortages or crises, outages can extend up to 20-22 hours a day. ¹³

In contrast, electricity availability in the West Bank is significantly better, with a generally stable 24-hour power supply. However, the West Bank still faces occasional power disruptions during peak demand periods, especially in summer and winter. Approximately 90% of the electricity in the West Bank is sourced from the Israeli Electric Corporation. ¹⁵

Until 2020, there were approximately 1,000 households in Palestine that had installed solar panels. This includes around 400 homes in the Gaza Strip and 600 homes distributed across the West Bank. The installations were part of various initiatives aimed at promoting renewable energy and improving electricity access in the region. ¹⁶

As of 2022, 20 percent of households in Gaza now rely on solar energy. ¹⁷

Currently, there are three operational solar farms in Palestine, with a total capacity of 16.5 MW. These include facilities located in Jericho (7.5 MW), Jenin (5 MW), and Ramallah (4 MW). Additionally, a new solar power station with a capacity of 5.5 MW was recently inaugurated in Jericho. ¹⁸

Several solar projects are in the planning and development phases under the Noor Palestine initiative. With an investment of $200 million and a total capacity of 200 MW, Noor Palestine aims to provide about 30 percent of the West Bank’s electricity upon completion. ¹⁹

Currently, there are approximately 9,000 off-grid solar installations in Gaza and around 500 off-grid installations in the West Bank, primarily focused on schools and public buildings. The demand for off-grid solar systems is expected to grow significantly, with projections indicating a need for 555 MW, requiring an investment of around $800 million. This demand is driven by the urgent need for sustainable energy solutions due to frequent electricity shortages and reliance on imported energy sources. ⁸¹¹²⁰

The number of rooftop solar installations in Gaza has skyrocketed from 12 in 2012 to over 12,400 by 2023. As of May 2022, there were at least 655 rooftop solar systems within a one square mile area of Gaza City, likely representing the highest density of rooftop solar panels in the world. ³

The Gaza Industrial Estate’s rooftop PV plant has also made a significant impact on the local economy by providing reliable energy for 32 factories, generating up to 80% of their electricity needs. This installation is crucial for maintaining production, creating jobs, and supporting economic growth in a region with high unemployment. ⁸

Additionally, a net metering system is in place, allowing consumers to receive credits for excess electricity generated by their solar systems, effectively lowering their electricity bills. On-grid solar systems offer a payback period of 3–5 years and are increasingly viewed as a sustainable solution to energy shortages. ²¹

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• Solar Thermal Technician: the average monthly salary is approximately $17.
• Solar Energy Systems Engineer: the average monthly salary is approximately $35.

The current population of Palestine is 5,541,296. ²⁵

Estimate for Factory Rent ²⁶

The average monthly rent for industrial properties and warehouses in Palestine is approximately:

• $4.64- $6.55 per square meter in the Barkan Industrial Zone, located in West Bank.
• In other areas, such as Beit Shemesh and Atarot, rents can be higher, reaching $9.55 per square meter depending on location and amenities.

Industrial Electricity Rates ⁴⁵

The average electricity price for commercial users in Palestine varies by the region, ranging approximately 0.17 $/kWh to 0.62 $/kWh per kWh.

Water Costs ²⁷

The water tariff in Palestine varies significantly, with rates typically ranging from $0.43 to $2.14 per cubic meter, depending on the service provider and region.

Salaries and Wages ²³²⁴

Monthly salaries of workers in solar industry in Palestine ranges from $17 to $35, depending on the position.

Rent for Office Space ²⁸

The average monthly rent for commercial office spaces in Palestine is approximately $8.18– $16.36 per square meter, with rates in central locations like Ramallah reaching up to $27.27 per square meter for premium spaces.

Insurance ²⁹

The average spending per capita for insurance in Palestine is approximately $71.22 as of the end of 2023, reflecting a slight decrease from $73.08 in 2022, due to various economic factors and challenges in the region.

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Energy Mix

Palestine’s energy mix primarily consists of electricity imported from Israel (87%), with minor contributions from Egypt and Jordan (4%), and local generation in Gaza (9%). The reliance on imported fossil fuels and limited renewable energy sources poses challenges for energy security.

Key Institutions

• Palestinian Electricity Transmission Company (PETL): The sole buyer of electricity in Palestinian Authority areas.
• Palestine Power Generation Company (PPGC): Responsible for electricity generation, including plans for new power plants.
• Palestinian Energy Authority (PEA): Oversees energy policy and renewable energy initiatives.

Export / Import

Palestine is a net importer of oil and natural gas, primarily sourcing from Israel, Jordan, and Egypt. Current electricity imports do not meet the total demand, leading to ongoing shortages.

Policy Goals and challenges

The Palestinian Authority aims to enhance energy independence through renewable sources, particularly solar and natural gas. However, challenges include high dependency on Israeli electricity, financial debts to the Israeli Electric Corporation, and infrastructural limitations. The development of the Gaza Marine gas field and new power plants are critical for future energy sustainability.

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Grid Interconnection Agreement: Before connecting solar panels, a grid interconnection agreement must be established with the local utility company, outlining terms for connection and net metering.

Licensing and Approval: Applicants must obtain a license to sell energy generated from photovoltaic (PV) systems. The licensing process involves submitting an application to the relevant electricity distribution company, which includes several stages of approval.

Net Metering Policy: A net metering policy allows PV system owners to receive credits for excess energy produced, which can offset future electricity bills. This policy is subject to regulations that limit the validity of credits to one year.

Compliance with Electrical Codes: All installations must adhere to local electrical codes and standards to ensure safety and reliability, covering aspects like wiring and grounding.

Capacity Limits: Regulations specify capacity limits for different types of projects, with incentives available for smaller systems under certain capacities.

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Palestinian Solar Initiative (PSI): Launched by the Palestinian Energy and Natural Resources Authority (PENRA), the PSI aims to install solar photovoltaic (PV) panels on rooftops across Palestinian households, targeting a total capacity of 5 MW by 2015. The initiative includes capacity building and training for stakeholders, as well as financial incentives to reduce the payback period for installations. It has a capital subsidy program that supports household installations, making solar energy more accessible to the population.

Solar Plant Auction Initiative: The Palestinian Authority has announced plans to auction permits for the construction of 10 solar plants, each with a capacity of up to 10 MW. This initiative is part of a broader strategy to increase renewable energy production in Palestine, aiming for a total of 110 MW over four years. The projects will be funded through soft loans from the $50 million Palestinian Solar Fund, aimed at reducing reliance on imported energy.

Future Solar Projects: The Palestinian Energy and Natural Resources Authority (PENRA) is planning additional solar projects, including two large-scale PV projects of 50 MW each. These initiatives are part of a comprehensive restructuring of the electricity sector aimed at enhancing local energy production.

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Jerusalem Electric Solar Power Plant

• Capacity: 4 MW
• Location: Jericho
• Investor: Jerusalem Electric Company
• Details: This $4 million solar power plant provides clean electricity for approximately 1,000 homes and is expected to reduce carbon emissions by over 6,000 tons annually. It marks a significant step towards energy independence and sustainability in the region.

Noor Jericho Solar Project

• Capacity: 7.5 MW
• Location: Jericho
• Investor: Palestinian Investment Fund (PIF)
• Details: Part of the Noor Palestine initiative, this project aims to enhance solar energy production in the region, contributing to the overall renewable energy capacity in Palestine.

Ajja Solar Project

• Capacity: 39 MW
• Location: Jenin
• Investor: Various local investors
• Details: This operational solar project contributes significantly to the renewable energy landscape in Palestine, showcasing local investment in sustainable energy solutions.

Noor Tubas Solar Project

• Capacity: 9 MW
• Location: Tubas
• Investor: Palestinian Investment Fund (PIF)
• Details: Another initiative under the Noor Palestine program, this project aims to bolster solar energy production and reduce reliance on imported electricity.

Bani Ne’em Solar Project

• Capacity: 30.5 MW
• Location: Hebron
• Investor: Local and international stakeholders
• Details: This project is part of a broader strategy to enhance renewable energy generation in Palestine, focusing on sustainability and energy security.

Gaza Rooftop Solar Initiative

• Capacity: 555 MW (projected)
• Location: Gaza Strip
• Investor: Various local and international investors
• Details: This ambitious project aims to install solar panels on rooftops across Gaza, addressing the urgent need for sustainable energy solutions in the region. The estimated cost is around $800 million, with a focus on reducing electricity costs and improving energy independence.

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Solar Park

• Headquarters: Beit Sahour, Palestine
• Website: https://solarpark.ps/
• Details: Established in 2016, Solar Park provides a full range of smart energy solutions, including solar, wind, and thermal energy systems. They are the exclusive distributor of Johnson Control-York products in Palestine and focus on energy-saving HVAC systems.

PalSolar

• Headquarters: Nablus, Palestine
• Website: https://palsolar.net/
• Details: Founded in 2011, PalSolar specializes in photovoltaic (PV) power systems, offering services from site surveying to installation and maintenance. They cater to industrial, commercial, and residential clients and are involved in various renewable energy projects across Gaza and the West Bank.

Qudra Energy

• Headquarters: Palestine
• Website: https://qudra.ps/
• Details: Qudra Energy focuses on developing integrated renewable energy solutions for citizens and businesses. They emphasize quality assurance and competitive pricing for their solar systems, aiming to reduce electricity costs for their customers.

Green Energy Solutions

• Headquarters: Bethlehem, Palestine
• Website: https://www.greenpalestine.ps/
• Details: Green Energy Solutions provides consulting, design, and installation services for solar power systems. They focus on promoting sustainable energy practices within local communities.

Shamsuna

• Headquarters:Hebron, Palestine
• Website:https://shamsuna.ps/
• Details:Shamsuna is specializing in providing top-quality solutions in the energy and construction sectors. Their offerings include solar thermal and electric systems, central heating systems, and thermal insulation materials.

3K Solar Renewable

• Headquarters:Ramallah, Palestine
• Website:http://3k.ps/
• Details:3K Solar Renewable specializes in building equipment contracting with a focus on renewable energy projects. They have been involved in significant projects, such as the establishment of a one-megawatt solar power station in Jericho in collaboration with the Jerusalem Electricity Company and the Municipality of Jericho.