Israel Solar Energy Market Size (2024 - 2029)

The Israeli solar energy market is poised for growth, driven by government initiatives to increase solar power capacity and reduce reliance on coal-fired projects. Despite challenges such as supply chain disruptions from COVID-19 and limited local private investment, the market is expected to expand as the government encourages solar PV installations. The commitment to renewable energy and ambitious solar power installation targets are anticipated to create significant opportunities, influencing the market size positively over the forecast period.

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Market Size of Israel Solar Energy Industry

Israel Solar Energy Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 5.00 %
Market Concentration High

Major Players

Israel Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Israel Solar Energy Market Analysis

The Israeli solar energy market is expected to register a CAGR of 5% during the forecast period (2022-2027).

The market was negatively affected by COVID-19 due to disruptions in the supply chain. However, the market rebounded in 2021.

  • In the long-term, the rigorous involvement of the Israeli government to encourage people to install solar PV panels on rooftops and other initiatives to boost solar power installed capacity may increase the adoption of solar energy systems at the domestic level, which may further drive the Israeli solar energy market.
  • However, factors such as the lower participation of local private companies investing in the country's solar energy business segment are expected to restrain the growth of the Israeli solar energy market.
  • The Israeli government has planned to shut down its coal-fired projects and promote the use of renewable energy. The government aims to install 17GW of solar power by 2030, which is expected to create several future opportunities for the Israeli solar energy market.

Israel Solar Energy Industry Segmentation

Solar energy is heat and radiant light from the sun that can be harnessed with technologies such as solar power (used to generate electricity) and solar thermal energy (used for applications such as water heating). 

The Israeli solar energy market is segmented by technology into solar photovoltaic (PV) and solar thermal. The market sizing and segment predictions have been based on installed capacity (MW).

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Israel Solar Energy Market Size Summary

The Israeli solar energy market is poised for significant growth, driven by government initiatives and ambitious renewable energy targets. The market experienced a setback due to COVID-19, but rebounded swiftly in 2021. The Israeli government's commitment to phasing out coal-fired projects and promoting solar power is expected to enhance the adoption of solar energy systems, particularly through rooftop installations. Despite challenges such as limited investment from local private companies, the government's plans to install substantial solar capacity by 2030 are likely to create numerous opportunities in the sector. The solar photovoltaic segment is anticipated to dominate the market, supported by strategic projects and investments from key players like Enlight Renewable Energy Ltd.

The market's expansion is further bolstered by increased installations of solar energy systems, particularly in residential areas, as electricity prices rise. Initiatives by the Ministry of Energy and organizations like Sun for Everyone aim to accelerate solar rooftop installations, despite challenges in multi-occupant buildings. The market is characterized by consolidation, with major players such as Shikun & Binui Ltd and BrightSource Energy Inc. actively participating in large-scale projects. Notable developments include the construction of Israel's first solar power plant on privately held Bedouin land and the upgrade of existing solar farms with high-capacity modules. These efforts align with Israel's goal to double solar capacity by 2025, positioning the market for continued growth during the forecast period.

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Israel Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Israel Solar Energy Installation Capacity Forecast, in MW, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

Israel Solar Energy Market Size FAQs

The Israel Solar Energy Market is projected to register a CAGR of 5% during the forecast period (2024-2029)

Shikun & Binui Ltd, BrightSource Energy, Inc, EDF Renewables, BELECTRIC Solar & Battery GmbH and Solaer Renewable Energies are the major companies operating in the Israel Solar Energy Market.

Israel Solar Energy Market Report Snapshots

Israel Solar Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)