Extensive development of alternative energy sources such as solar, thermal, and wind energy has been a positive outcome of the country’s lack of conventional energy sources. As a result, Israel is a leader in the solar energy field at every level and the world's largest per capita user of solar water heaters in the home. A new, high-efficiency receiver to collect concentrated sunlight has been developed, which will enhance the use of solar energy in industry as well.

An advance in harnessing wind energy has been the production of a wind turbine with a flexible, inflatable rotor. Technology utilizing pond water with a certain degree of salinity and mineral composition to absorb and store solar energy has also been developed. Geothermal power stations, capable of extracting heat from the ground and converting it to steam for powering turbines, are now being tested. A project developed by a team of scientists at the Technion, uses dry air and water (even sea or brackish water) to produce energy through 1,000-meter high chimneys.