Israel Launches $110 Million Loan Program to Boost Local Renewable Energy Projects

In a groundbreaking initiative for Israeli municipalities, a new loan program totaling 380 million shekels (approximately $110 million) was officially launched to accelerate sustainable energy projects and financing solutions. The program was unveiled at a professional conference organized by Mifal HaPais in collaboration with the Ministry of Energy and Infrastructure and the Ministry of Interior. This event marked the debut of the "Energy Channel," a dedicated financing track designed to support local authorities in advancing profitable projects in renewable energy, energy efficiency, energy storage, and electric transportation.

The conference attracted top local government officials, including dozens of mayors, CEOs, treasurers, energy managers, as well as representatives from government ministries, Mercantile Bank, and other leading organizations. Participants were introduced to practical tools to overcome financing barriers, speed up investments, and enhance energy independence, economic resilience, and operational continuity during emergencies.

The centerpiece of the event was the announcement of the loan terms: subsidized credit at prime minus 1.25% interest for up to ten years. This funding aims to incentivize strategic projects such as solar canopies, advanced electricity storage facilities, solar installations on public buildings, and green construction. Alongside financing, the Ministry of Energy and Infrastructure presented a comprehensive toolkit including advanced mapping and planning tools, financial models for economic feasibility, regulatory updates, and solutions to reduce bureaucratic obstacles. Successful case studies from municipalities nationwide were also showcased.

This loan track specifically targets projects that have struggled to secure funding, with a focus on electricity storage and solar canopies over sports fields. The initiative is expected to enable municipalities to implement revenue-generating projects, reduce energy costs, and strengthen operational continuity both routinely and in emergencies. According to the Ministry of Energy and Infrastructure, local government assets hold the potential for an additional 1,600 megawatts of solar power generation. Moreover, Israel has about 3,500 sports fields suitable for solar canopies, which alone could produce hundreds of megawatts of clean energy and provide around 3 million square meters of essential shaded community space.

Benny Drayfus, CEO of Mifal HaPais, emphasized the partnership with local authorities as central to Israel’s future, stating that the new financing channel combines innovation, environmental responsibility, and economic resilience to turn energy investments into long-term community value. Yossi Dayan, CEO of the Ministry of Energy and Infrastructure, highlighted the unique collaboration providing municipalities with financing, expertise, and practical tools to realize significant energy projects, reduce costs, generate new income, and accelerate the transition to a more advanced, efficient, and clean energy sector.