Homeowners and businesses across Israel are discovering the financial potential of generating solar power. What many of them do not know is that in certain municipalities you can earn an additional cash incentive on every kWh (kilowatt-hour) fed into the grid – a state incentive known as the urban premium. It is a benefit that makes investing in a solar system even more worthwhile, particularly in urban areas.
What is the urban premium?
The urban premium is a tariff supplement of 6 agorot for every kWh produced and fed into the electricity grid under the guaranteed tariff route. Instead of receiving 48 agorot per kWh you receive 54 – an increase of 12.5%. The benefit applies only to solar systems installed in urban areas that the Electricity Authority has designated in advance.
It was introduced as part of the 2022-2025 electricity reform, whose aim is to encourage self-generation in densely built areas too, where open land and available roof space are usually in shorter supply.
Which cities qualify for the urban premium?
As of 2025 the Electricity Authority has published a list of cities and local authorities where the premium is available – among them Tel Aviv-Yafo, Haifa and Netanya. Click to view the full list
What difference does it make in practice?
Six agorot may look marginal, but across the life of the system it adds up to a meaningful sum that lifts the rate of return on the investment.
Which route is the most worthwhile?
The urban premium can be the tie-breaker in a decision to build a solar system, especially if you are weighing up the different routes and want to get the most out of the system.
At Rotem Energy we provide the full wrap-around service: a complete eligibility check, a profit simulation with and without the premium, matching you to the optimal route, and filing the application with the Electricity Authority – all with personal, professional support.
Want to know whether you qualify for the urban premium?
leave your details or call *8426
