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Israel’s New Law Boosts Agro-Voltaic Energy with Tax Breaks

Israel's Knesset approved a temporary exemption from improvement levy for agro-voltaic installations for one year. Local authorities will receive a replacement levy through the Israel Land Authority. The move aims to boost the agro-voltaic and solar roofing sector with regulatory certainty. The Ministry of Energy targets 5,000 MW of agro-voltaic installations by 2035 to enhance energy security and preserve agricultural land.

Key Points: Israel Law Boosts Agro-Voltaic Energy with Tax Exemptions

  • Knesset committee approves temporary exemption from improvement levy for agro-voltaic installations
  • Local authorities to receive replacement levy through Israel Land Authority
  • Exemption from canalization and paving levy if land use unchanged
  • Goal to establish 5,000 MW of agro-voltaic installations by 2035
1 min read

New law promotes agro-voltaic energies

Israel’s Knesset approves temporary exemption from improvement levy for agro-voltaic installations, aiming for 5,000 MW by 2035 to boost renewable energy.

"The move is intended to enable the continued advancement of the agro-voltaic and solar roofing sector in Israel while creating regulatory and economic certainty - Ministry of Energy and Infrastructure"

Tel Aviv, May 14

The Knesset's Interior and Environmental Protection Committee approved today the bill regulating a temporary exemption from the improvement levy for agro-voltaic installations for a period of one year, led by the Ministry of Energy and Infrastructure.

At the same time, local authorities will receive a replacement improvement levy through the Israel Land Authority. An exemption from the canalization and paving levy was also approved if the original land use is not changed.

The move is intended to enable the continued advancement of the agro-voltaic and solar roofing sector in Israel while creating regulatory and economic certainty, pending the completion of the work of an inter-ministerial team that will formulate a permanent arrangement over the coming months regarding improvement levies for agro-voltaic installations.

The Ministry of Energy and Infrastructure estimates that by 2035, it will be possible to establish approximately 5,000 megawatts of agro-voltaic installations in Israel -- a move that will contribute to strengthening energy security, advancing renewable energy goals, preserving agricultural land, and strengthening settlement and agriculture in Israel.

- ANI

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Reader Comments

P
Priya S
Good to see another country prioritizing renewable energy. But I'm skeptical about the "temporary exemption" approach—these temporary measures often become permanent without proper oversight. India's own solar park program has faced similar issues with land acquisition and farmer displacement. Hope Israel does it better, with genuine farmer benefit.
V
Vikram M
5,000 MW by 2035 is ambitious but achievable for a small country like Israel with strong tech sector. Meanwhile, India struggles to hit 500 GW renewable target by 2030 due to bureaucratic hurdles and DISCOM financial issues. We need similar regulatory certainty and inter-ministerial coordination. Good example to follow.
S
Sarah B
Interesting comparison with India's KUSUM scheme. Both aim to dual-use land for solar + agriculture. But Israel's approach seems more streamlined with inter-ministerial team. In India, state and center often work at cross-purposes. The 'canalization levy exemption' is clever—keeps land use intact. 👍
K
Kavya N
I appreciate the environmental focus, but what about local council revenue loss from the levy exemption? The Israel Land Authority replacing it is fine, but could lead to centralization issues. In Indian context, panchayats would revolt if their local taxes were bypassed. Still, agro-voltaic is a win-win for renewables and food security.
R
Rohit P
Tel Aviv is doing what our Indian babus should be doing—giving clear regulatory pathways for clean energy. But I hope the 'temporary' bit doesn't create uncertainty for investors. Our own renewable sector suffers from policy flip-flops. 5,000 MW with agro-voltaics? Great if

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