Israel Launches $110 Million Loan Program to Boost Local Renewable Energy Projects
Israel has introduced a groundbreaking financing initiative aimed at local authorities to accelerate sustainable energy projects. At the first-ever professional conference dedicated to this effort, a new loan track totaling 380 million shekels (approximately $110 million) was officially launched to support renewable energy, energy efficiency, storage solutions, and electric transportation projects across municipalities.
The event, organized by Mifal HaPais in collaboration with the Ministry of Energy and Infrastructure and the Ministry of Interior, gathered top local government officials, energy sector leaders, and representatives from government ministries and financial institutions. The new "Energy Channel" financing track offers subsidized loans at prime minus 1.25% interest rates for up to ten years, enabling local authorities to implement strategic and profitable projects such as solar panel installations on public buildings, advanced energy storage systems, and green construction.
Participants were also introduced to a comprehensive toolkit developed by the Ministry of Energy and Infrastructure, including advanced mapping and planning tools, financial models, regulatory updates, and solutions to overcome bureaucratic hurdles. Success stories from ongoing municipal projects were shared to demonstrate the program's potential.
The initiative targets projects that previously struggled with funding barriers, particularly solar canopies over sports fields and energy storage facilities. According to ministry data, local government assets in Israel hold the potential to add about 1,600 megawatts of solar power, with approximately 3,500 sports fields suitable for solar canopies alone, which could generate hundreds of megawatts of clean energy and provide around 3 million square meters of shaded community space.
Mifal HaPais CEO Benny Drayfus emphasized the partnership's role in enabling municipalities to grow sustainably and create long-term value for residents. Ministry of Energy and Infrastructure CEO Yossi Dayan highlighted the unique combination of financing, expertise, and practical tools provided to local authorities to reduce energy costs, generate new income, enhance operational resilience, and advance Israel's transition to a cleaner, more efficient energy economy.
