Given their vital role in economic and social development, small and medium-sized enterprises (SMEs) lie at the heart of the Palestinian economy. PsDF - the Palestine Investment Fund (PIF) - during the last years, launched in cooperation and funding by EU and PIF, the Jerusalem Granting Facility to support small and medium-sized enterprises. The facility acheived great success during the two phases of implementation, which resulted in supporting around 75 SMEs and creating or sustaining above 650 jobs, while providing approximately 4.0M EUR as direct grants to SMEs operating in Jerusalem. Yet SMEs in Jerusalem suffer from weakness in various areas, including high operational costs, taxes, access to finance etc., which put attention to the environmental aspects and focus on providing clean and renewable energy alternatives at the last priority of these projects. Therefore PIF and the EU agreed on launching “The Green Energy and Sustainability Granting Facility” which focuses on investing in environmentally friendly equipment, clean and renewable energy and will contribute to raising the number of SMEs interested in alternative and renewable energy given its environmental impact as an economic solution to the problem of the high cost of energy in Jerusalem.