Israel

By the end of 2023, Israel had reached approximately 12.5% renewable electricity consumption, with a total installed renewable energy capacity of roughly 7 000 MW by 2024, primarily solar PV. Achieving the 2030 target requires an additional 10 000 MW, highlighting both significant progress made and the considerable efforts still needed, emphasizing solar energy as the cornerstone of Israel’s renewable strategy.

Israel faces unique challenges in renewable integration, including rapid population growth, limited land availability, and geographic disparities between high renewable potential in peripheral regions and concentrated energy demand in urban centres. Given these constraints, Israel relies almost exclusively on solar energy and has adopted a strategic “both–and” policy approach, promoting dual-use PV systems alongside ground-mounted solar facilities.

Recent key measures to accelerate renewable adoption include substantial investments in electricity transmission and distribution infrastructure, additional land allocations for ground-mounted solar installations, and regulatory reforms mandating solar installations in new buildings. Special emphasis has been placed on agro-voltaic (dual-use agricultural and solar) installations, with targeted regulatory frameworks and national planning initiatives established to significantly expand this promising sector. Other notable actions include nationwide expansion of expedited permitting (“Green Track”) for small-scale systems and introduction of an “Urban Premium” incentive for urban PV and storage installations. Additionally, detailed planning for large-scale PV projects and extensive support for energy storage aim to enhance grid stability and resilience.

Further strategic initiatives include formulating a National Renewable Energy Strategy for 2035, launching the “100 000 Solar Rooftops” program targeting residential buildings, and introducing dedicated recovery and development plans for conflict-affected regions emphasizing renewable and storage projects. Finally, nationwide public-awareness campaigns and digital platforms providing centralised regulatory information aim to streamline renewable-energy adoption across Israel.

The Office of the Chief Scientist at the Ministry of Energy supports energy-related R&D through targeted national and international programs, prioritizing innovation, technological breakthroughs, and practical demonstration of advanced solutions. Key national support channels include full funding for academic research projects, grants of up to 62.5% for innovative startup initiatives, and up to 50% co-funding for pilot and demonstration projects aimed at commercial deployment of novel technologies.

Internationally, the Chief Scientist participates actively in the EU Horizon Europe framework, publishing annual joint calls for proposals in collaboration with programs such as Water4All, CETP, and M-era.net. Additionally, the BIRD Energy fund, operated jointly with the U.S. under the Binational Industrial Research and Development Foundation, supports collaborative US-Israeli projects in the energy sector.

In 2024, the Chief Scientist invested over USD 8 million in diverse R&D initiatives. Notable funded projects include a highly cost-effective Building-Integrated Photovoltaic (BIPV) technology, Vehicle-to-Grid (V2G) applications, sensors for optimizing grid space utilisation, and advanced research into ultra-deep geothermal energy.

These R&D initiatives directly align with Israel’s strategic energy objectives, particularly enhancing renewable energy integration, advancing grid efficiency, and fostering technological innovation to meet national and international climate targets.

By the end of 2023, approximately 12.5% of Israel’s electricity consumption came from renewable energy sources—up from 10.1% in 2022. Of this, over 90% was generated by solar PV systems, underscoring the central role of PV in Israel’s renewable energy landscape.

While official figures for 2024 have not yet been published, it is estimated that around 1 GW of new renewable capacity was added during the year, bringing total installed renewable capacity to nearly 7 GW—most of it solar. This continued growth is driven by Israel’s high solar potential, supportive policies, and a regulatory framework that encourages both rooftop and ground-mounted PV installations. The Israeli electricity market features a high share of distributed generation, with thousands of small to medium-scale PV systems installed on residential, commercial, and agricultural rooftops.

Although Israel does not maintain a significant domestic manufacturing base for PV panels or inverters, the local solar industry benefits from strong expertise in project development, engineering, energy management, and digital optimization. Dozens of private developers and EPC companies operate across the market, participating in public tenders and offering private PPA models.

Key market trends include the expansion of dual-use systems—particularly agro-voltaic installations—rapid adoption of hybrid PV-plus-storage projects, and the rollout of urban-targeted incentives such as the “urban premium.” As part of its broader energy transition, Israel is committed to reaching 30% of electricity consumption from renewables by 2030, with solar PV expected to contribute the vast majority. Continued investment in grid infrastructure, regulatory streamlining, and innovation in energy technologies are expected to sustain the sector’s growth in the years ahead.

In Israel, solar PV generates over 90% of all renewable electricity, making it the dominant renewable source by far. Faced with severe land scarcity, the country is pioneering dual-use applications such as rooftop and agro-voltaic systems. These innovations are key to meeting Israel’s ambitious target of 30% renewable electricity consumption by 2030.