In February 2024 the Israel Electricity Authority published Decision 66406 - "Urban Premium for Generation and Storage Facilities" - to encourage rooftop PV and storage in Israel's large cities. The goal: utilise existing roofs rather than allocating open land, and reduce strain on the transmission grid.
What does the premium add? An extra 6 agorot per kWh on top of the standard tariff - both for self-consumed electricity and for surplus exported to the grid. The 2024 base tariff for an LV prosumer is 48 agorot/kWh; with the premium it rises to 54 agorot/kWh. The bonus tariff is guaranteed until the end of 2042 - roughly the first 18 years of the system's tariff life.
Who qualifies? The system must be installed on a property in one of ~70 cities on the Authority's list - mostly cities above 50,000 residents: Tel Aviv-Yafo, Jerusalem, Haifa, Be'er Sheva, Rishon LeZion, Ramat Gan, Bnei Brak, Ashdod, Petah Tikva and more. The premium applies to PV systems with or without storage. The full, updated list and criteria are on the Electricity Authority website.
Timing - connection date is what counts: Eligibility requires the system to be grid-connected between August 2024 and December 31, 2026. Not the contract signing date or order date - the actual commercial operation date. The full process from decision to connection typically runs 3-6 months: design (2-4 weeks), municipal and utility approvals (6-12 weeks), equipment ordering and installation (2-4 weeks), connection and testing (2-4 weeks).
Worked commercial example - a 25 kWp city rooftop: ~41,500 kWh annual output. Premium uplift: 41,500 × ₪0.06 ≈ ₪2,490 per year. Over the 18-year preferential-tariff window (through end of 2042) that comes to about ₪45,000 in additional income on top of the base tariff. For a 15 kWp residential system the same calculation gives about ₪1,500/year and ~₪27,000 over the period. Actual figures depend on irradiance, roof orientation, consumption, and operating profile.
Practical takeaway: anyone who starts the process after summer 2026 risks losing the premium. The eligibility is also subject to a national quota managed by the Authority ("first come, first served") - it may close earlier than the deadline if the quota fills up.
