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

The israel renewable energy market size was valued at 7.47 gigawatt in 2025 and estimated to grow from 8.88 gigawatt in 2026 to reach 21.05 gigawatt by 2031, at a CAGR of 18.84% during the forecast period (2026-2031). This report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Israel Renewable Energy Market Trends and Insights

Government-backed Feed-in-Tariffs Revival

Israel reinstated 20-year feed-in-tariff contracts that guarantee predictable cash flows for projects up to 250 MW. The mechanism corrects the financing gap created after the 2013 shift to net-metering and now underpins at least 250 MW of annual solar additions mandated by Government Resolution 4450. Smaller IPPs benefit most because the tariff improves bankability without large corporate offtakers. Activity is concentrated in the Negev and Golan, where land is abundant yet grid access remains limited, prompting developers to co-site new substations with solar parks. The policy directly raises installation rates and broadens investor participation in the Israel renewable energy market.

Falling LCOE of Utility-scale Solar PV

EDF Renewables won a 300 MW tender at USD 0.019/kWh in 2024, a record low that establishes solar as Israel’s least-cost new-build technology. High isolation above 2,000 kWh/m², superior tracker designs, and volume procurement have pushed PV costs 45% below 2022 levels. Industrials now lock in 20-year corporate PPAs to hedge fuel volatility, while developers such as Solaer report 1.78 GW in construction, helped by cheap modules. The price advantage catalyses utility-scale projects and accelerates distributed rooftop rollouts, cementing solar PV as the backbone of the Israel renewable energy market.

Grid Congestion & Limited Sub-Station Capacity

Three high-renewable zones already exceed local switching-station ratings at midday, forcing 5-8% curtailment in 2024. The Israel Electric Corporation plans to invest NIS 20 billion by 2027 to add 738 km of 400 kV lines; however, the build-out lags behind solar additions, potentially delaying project commissioning by up to a year. Developers now pre-screen sites for grid headroom rather than solar irradiance, concentrating new capacity in zones with immediate access to interconnection.

Other drivers and restraints analyzed in the detailed report include:

• 2030 30%-RE Target & Net-Zero 2050 Pledge
• Corporate PPAs from Tech & Defence Campuses
• Scarcity of Suitable Land Parcels

Segment Analysis

Solar energy led the Israel renewable energy market share at 88.85% of installed capacity in 2025, reflecting an isolation of 2,200-2,800 kWh/m²/year in the Negev and LCOE below USD 0.02/kWh in recent tenders. Wind capacity is small today but is set to outpace all other technologies with a 40.10% CAGR through 2031, supported by the first 207 MW utility plant and by the Great Sea Interconnector that will channel wind-heavy imports. The Israel renewable energy market size for solar is projected to exceed 17.5 GW by 2031, while wind may surpass 2.3 GW over the same horizon.

Hybrid assets at the Ashalim complex combine CSP with 4.5-hour thermal storage to firm evening peaks, illustrating a transition toward dispatchable renewables. Hydropower, bioenergy, geothermal, and ocean energy collectively account for less than 2% of total capacity. Eco Wave Power’s 100 kW pilot at Jaffa Port highlights ongoing innovation, yet its LCOE above USD 0.20/kWh limits near-term scaling. Israeli developers increasingly focus on export-oriented hydrogen and wind projects abroad, while domestic growth centers on solar-plus-storage and agrivoltaics.

Complete Report Scope:

• By Technology
  • Solar Energy (PV and CSP)
  • Wind Energy (Onshore and Offshore)
  • Hydropower (Small, Large, PSH)
  • Bioenergy
  • Geothermal
  • Ocean Energy (Tidal and Wave)
• By End-User
  • Utilities
  • Commercial and Industrial
  • Residential

List of Companies Covered in this Report:

• Energix Renewable Energies Ltd
• Enlight Renewable Energy Ltd
• Econergy Renewable Energy Ltd
• EDF Renewables
• Doral Group
• Ormat Technologies Inc
• General Electric Co.
• Siemens Gamesa Renewable Energy
• Vestas Wind Systems A/S
• BrightSource Energy Inc
• BELECTRIC Solar & Battery GmbH
• Shikun & Binui Ltd
• SunPower Corp.
• JinkoSolar Holding Co.
• Abengoa Solar Israel
• Tesla Energy
• Solaer Israel Ltd
• Nofar Energy Ltd
• SolarEdge Technologies Inc
• Mey-Govan Renewable Energy

Additional Benefits:

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