Rooftop solar panel tariffs to fall sharply in 2027

The tariff paid to owners of solar roofs in Israel, currently NIS 0.48 to NIS 0.54 per kWh, is set to expire at the end of 2026. A Ministry of Energy proposal would cut the rate to NIS 0.35 per kWh for new installations from 2027, with a 1% quarterly reduction. Existing installations are contractually guaranteed the current rate for 25 years.

The tariff paid to owners of solar roofs in Israel, currently NIS 0.48 to NIS 0.54 per kilowatt-hour, is set to expire at the end of 2026. A Ministry of Energy proposal, obtained by Globes, would cut the rate to NIS 0.35 per kWh for new installations from 2027, with a 1% quarterly reduction. The proposal divides roofs into three tiers: home roofs (up to 30 kW) keep a fixed lower tariff; medium roofs (30-100 kW) get split day/night rates to incentivize storage; large roofs (100-630 kW) move to a competitive market model with a premium. Existing installations are contractually guaranteed the current rate for 25 years. The Ministry has launched a 'Don't miss the train' campaign urging installation this year to lock in the high rate. The Electricity Authority will decide in coming months after public consultation. The move aims to reduce the burden on electricity tariffs for all consumers and provide market certainty.