Israel Solar Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

Israel solar energy market size in 2026 is estimated at 7.93 gigawatt, growing from 2025 value of 6.75 gigawatt with 2031 projections showing 17.72 gigawatt, growing at 17.46% CAGR over 2026-2031. This report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Grid Type (On-Grid and Off-Grid), and End-User (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Israel Solar Energy Market Trends and Insights

Government FITs & Competitive Tenders Reshape Utility Economics

Competitive auctions replaced static feed-in tariffs, pushing PPA prices to ILS 0.07 per kWh in 2024 and establishing subsidy-free grid parity for the Israel solar energy market. A February 2025 award covering 1.5 GW of four-hour storage further underscores policy commitment to firming variable solar output. Local-content clauses now embedded in tender rules are carving out work for domestic engineering firms even as modules remain import-dependent. Bi-annual auction cadence targeting 2 GW per year through 2027 sustains a robust pipeline, although smaller cooperatives face consolidation pressure as low bids favor developers with balance-sheet depth.

High Solar Irradiance in Negev Desert Anchors Utility-Scale Concentration

Annual irradiance of 2,200-2,500 kWh/m² in the Negev enables PV capacity factors above 23% and concentrates most future capacity south of Be’er Sheva. Single-axis tracking, bifacial modules, and TOPCon cells optimize harvests and soften land-use footprints. Despite the headline 250 MW Ashalim CSP complex, PV-plus-battery hybrids dominate new project design because they deliver similar evening dispatch at one-sixth the capital cost. Environmental safeguards, wildlife corridors, and soil-preservation measures add permitting complexity but have not derailed large-scale tenders.

Grid Congestion & Limited Transmission Capacity Constrain Deployment

Solar additions slowed to 900 MW in 2024 from 1.1 GW in 2023 as Negev interconnection queues lengthened. A NIS 20 billion (USD 5.4 billion) IEC plan to build 3,000 km of high-voltage lines by 2030 will ease constraints, yet four- to six-year construction timelines imply curtailment persists through 2027. Dynamic connection agreements mitigate risk but raise finance costs.

Other drivers and restraints analyzed in the detailed report include:

• 2050 Decarbonization & Gas-to-RES Transition Drives Policy Commitment
• Declining PV & Battery Costs Compress Payback Periods
• Land-Use & Environmental Permitting Hurdles Extend Project Timelines

Segment Analysis

Solar Photovoltaic accounted for 95.10% Israel's solar energy market share in 2025 and will grow 17.83% CAGR to 2031 on unbeatable capex and continuous efficiency gains. Concentrated Solar Power's 250 MW Ashalim showcase validates six-hour dispatchability yet sits at USD 4,500 /kW, far above PV-battery hybrids. Bifacial and TOPCon modules now underpin most new bids, while perovskite-silicon tandem pilots explore 33% plus efficiencies for post-2028 rollouts.

Israel's solar energy market size for CSP is projected to stagnate below 1.05 GW through 2031 unless capacity payments emerge. Conversely, floating PV on reservoirs and wastewater ponds offers land-neutral expansion, delivering 5-8% higher yields from evaporative cooling despite pricier interconnections.

Complete Report Scope:

• By Technology
  • Solar Photovoltaic (PV)
  • Concentrated Solar Power (CSP)
• By Grid Type
  • On-Grid
  • Off-Grid
• By End-User
  • Utility-Scale
  • Commercial and Industrial (C&I)
  • Residential
• By Component (Qualitative Analysis)
  • Solar Modules/Panels
  • Inverters (String, Central, Micro)
  • Mounting and Tracking Systems
  • Balance-of-System and Electricals
  • Energy Storage and Hybrid Integration

List of Companies Covered in this Report:

• Enlight Renewable Energy
• Shikun & Binui Renewable Energy
• Doral Renewable Energy Resources
• Nofar Energy
• EDF Renewables Israel
• Solegreen
• Meshek Energy
• SolarEdge Technologies
• Arava Power (Kibbutz Ketura)
• Solaer Renewable Energies
• BrightSource Energy
• BELECTRIC Solar & Battery
• Siemens Israel
• General Electric Israel
• Greencells Group
• Ashtrom Renewable Energy
• Nextcom
• Noy Infrastructure & Energy Fund
• Mekorot National Water Co.
• EDF ENR’s Kibbutzim Solar SPVs

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support