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🇮🇱 Solar Calculator Israel

Enter your monthly electricity bill and city — get solar system size, big city vs small locality tariff, tokef yitzur feed-in rate, system management cost, and payback period.

Your electricity details
₪NIS
Solar system results — Israel
4 kWp system — 1606 kWh/kWp/yr
Monthly kWh usage625 kWh/mo
Annual solar production6,424 kWh/yr
Retail tariff (your city)₪0.56/kWh
Feed-in tariff (your city)₪0.56/kWh
System management cost₪0.09/kWh (mandatory)
Self-consumption savings (net)₪1,359/yr
Feed-in income (net)₪1,661/yr
Total annual benefit₪3,019/yr
System cost (installed)₪16,000 – ₪24,000
Net installed cost₪20,000
Payback period6.6 years
25-year net savings₪55,482
Israeli system management cost: All grid-connected solar systems in Israel pay a mandatory NIS 0.09/kWh system management cost (dמéi nihal ma'arechet) to the IEC for every kWh produced — both self-consumed and exported. This is already factored into your results above.
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How to Use This Calculator

Enter your bill and city

Enter your average monthly electricity bill in Israeli New Shekel (NIS/ILS) from the Israel Electric Corporation (IEC) or your private electricity supplier. The calculator applies the correct tariff based on your city size. Select your city — Eilat (6.0 PSH) is the sunniest location in Israel, while even Jerusalem (5.3 PSH) at 750m elevation performs excellently. All Israeli cities rank among the world's best solar locations, producing 1,400–1,750 kWh/kWp/year.

City size tariff selection

Israel operates a two-tier electricity tariff system: municipalities with over 50,000 residents pay NIS 0.56/kWh and receive NIS 0.56/kWh feed-in tariff (tokef yitzur), while smaller localities pay NIS 0.48/kWh with a matching NIS 0.48/kWh feed-in rate. Check your IEC electricity bill for your tariff classification. Tel Aviv, Jerusalem, Haifa, Beersheba, Rishon LeZion, Petah Tikva, and Netanya are all in the big city category.

System management cost

All Israeli grid-connected solar systems pay a mandatory NIS 0.09/kWh d'mei nihal ma'arechet (system management fee) on every kWh produced — whether self-consumed or exported. This fee covers IEC's costs for managing distributed generation on the grid. It is automatically deducted from your feed-in credit and reduces the effective value of self-consumed electricity.

The Formula

Monthly kWh = Monthly Bill ÷ tariff (₪0.56 big city or ₪0.48 small locality) Annual production = kWp × PSH/day × 365 × 0.80 efficiency Self-consumption = 45% of annual production (aligned with daytime AC demand) Self-consumption savings = Self-kWh × (retail tariff - ₪0.09 management fee) Feed-in income = Exported kWh × (feed-in tariff - ₪0.09 management fee) System cost = ₪4,000–6,000/kWp installed New build discount = ~15% labor cost saving vs. retrofit Payback = Total net cost ÷ Annual benefit

Israel's feed-in tariff (tokef yitzur) is set by the Public Utilities Authority (Reshut HaChashmal) and is equal to the retail electricity tariff in each municipal category. This means exported electricity earns the same rate as avoided retail electricity — a favorable arrangement compared to many European countries where export rates are much lower. The mandatory management fee applies to all produced kWh. Israel has no VAT (ma'am) exemption for residential solar installations; standard 17% applies.

Example

David — Jerusalem family home, 6 kWp, big city tariff

David lives in Jerusalem and pays NIS 500/month. He installs a 6 kWp system under the big city tariff of NIS 0.56/kWh.

Monthly bill₪500
City / PSHJerusalem, 5.3 PSH/day
System size6 kWp
City sizeBig city (>50K)
BuildingRetrofit

Result

Annual production~9,282 kWh/yr
kWh per kWp~1,547 kWh/kWp/yr
Self-consumption savings (net)~₪2,247/yr
Feed-in income (net)~₪2,557/yr
Total annual benefit~₪4,804/yr
System cost₪24,000–36,000
Net installed cost~₪30,000
Payback~6.2 years
25-year net savings~₪90,096

Israel's combination of high solar irradiance, favorable feed-in tariffs, and relatively high electricity prices (especially in big cities) produces outstanding solar economics. A 6–8 year payback with 25-year savings of NIS 80,000–120,000 is typical for well-positioned Israeli residential systems.

FAQ

Absolutely — Israel has among the world's best conditions for residential solar. Peak sun hours of 5.3–6.0/day produce 1,400–1,750 kWh/kWp/year. Combined with NIS 0.48–0.56/kWh electricity tariffs and a matching feed-in rate, payback periods of 6–9 years are common. The mandatory NIS 0.09/kWh management fee reduces returns but still leaves excellent economics. Israel's 300+ sunny days per year and high summer AC demand align perfectly with solar production timing.
The Public Utilities Authority (Reshut HaChashmal) sets different electricity tariffs for different municipal categories. Cities with over 50,000 residents — including Tel Aviv, Jerusalem, Haifa, Beersheba, Rishon LeZion, and Netanya — pay NIS 0.56/kWh and receive NIS 0.56/kWh as the feed-in tariff for solar exports. Smaller localities pay NIS 0.48/kWh with a NIS 0.48/kWh feed-in rate. Both tiers benefit from solar; the big city tariff produces approximately 17% better economics per kWh.
From 2026, Israel requires solar panel installation on all new residential buildings (Standard 5282 update). This mandate applies to new construction permits and requires systems sized to meet a minimum percentage of the building's energy demand. New build installations are coordinated with the construction phase, reducing labor costs by approximately 15% compared to retrofits. The mandate reflects Israel's target of generating 30% of electricity from renewables by 2030.
The d'mei nihal ma'arechet (system management fee) is a mandatory charge of NIS 0.09/kWh levied on every kWh produced by your solar system — whether consumed on-site or exported to the grid. This fee compensates the IEC for managing distributed solar generation on the grid. It is deducted automatically from your tokef yitzur (feed-in credit) and reduces the net benefit of solar production. Always factor this into ROI calculations — it amounts to approximately NIS 500–1,500/year depending on system size.
Eilat at the tip of the Negev (6.0 PSH) is Israel's sunniest city, with almost no cloud cover year-round. Beersheba (5.8 PSH) and the Negev region follow. Tel Aviv (5.5 PSH), Netanya, and Haifa (5.4 PSH) on the coast are excellent despite Mediterranean humidity. Jerusalem (5.3 PSH) at 750m elevation benefits from clear mountain air. Even the least sunny Israeli city far outperforms most European locations.

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