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Israel is set to become one of the first countries globally to mandate the installation of solar panels on rooftops, marking a major step toward accelerating its clean energy transition.

According to an announcement by the Ministry of Energy and Infrastructure, the Israeli National Planning and Building Council has approved new regulations requiring rooftop photovoltaic (PV) systems to be installed on various categories of new buildings starting December 2025.

Mandatory Installation for Residential and Non-Residential Buildings

Under the new rules, an occupancy permit will be granted only if the building includes rooftop solar installations. This applies to:

· All new homes with roof areas exceeding 100 square meters

· Industrial and public buildings

· Non-residential buildings with roof areas larger than 250 square meters

Detached residential houses must install systems with a minimum capacity of 5 kW, while non-residential buildings under 42 meters high are required to install PV systems sized at half of the roof area divided by 10. However, smaller systems may be permitted if the building qualifies under a separate fast-track solar installation program.

Exceptions and Flexibility

Certain exceptions are built into the regulation. For example, sheds, additions to preserved buildings, or roofs earmarked for future construction may be exempt. City engineers are also authorized to waive the requirement in cases where solar installations would interfere with architectural or developmental plans.

Aiming for 3,500 MW by 2040

The Ministry estimates the new policy will result in the installation of tens of thousands of rooftop solar systems, contributing up to 3,500 MW of renewable capacity by 2040. The regulation aligns with Israel’s broader goal to install solar panels on 100,000 to 150,000 rooftops by 2030, helping decentralize electricity production and enhance grid resilience.

Financial Incentives and Controversy

To encourage adoption, the Ministry has approved attractive payment terms for solar system owners:

· A fixed feed-in tariff for 25 years, even as technology improves

· Tariffs linked to the Consumer Price Index (CPI) to ensure long-term value

· Up to NIS 0.48 per kWh for rooftop systems producing up to 15 kW

· A premium of NIS 0.54 per kWh for installations in large cities

While these incentives promise a faster return on investment, critics warn they could cost taxpayers hundreds of millions of shekels annually, as the feed-in tariffs are ultimately funded by electricity consumers.

Despite the concerns, the Ministry maintains that the incentives are necessary to address a “market failure” and accelerate the shift to renewable energy sources.