In this paper, renewable energy (RE) policies are evaluated to draw up recommendations for the energy sector stakeholders. The good potential of RE exists in Palestine, especially solar and biomass resources. Structural frameworks and targets are established for RE penetration in Palestine. Some strategies for the enhancement of RE systems are already in place; however, sustainable policies are still needed. To accomplish this task, a comprehensive integrated approach, involving all consumed energy forms (e.g., electricity, heating and cooling, and transport sectors) is anticipated. Energy security in Palestine over the upcoming 20 years was investigated using a Monte-Carlo simulation model that applied different RE adoption scenarios. In order to meet the Palestinian population's electrical energy needs in the near future, RE sources should be growing at an annual rate of about 5–10%. Few incentives exist for photovoltaic systems, yet sufficient funds must be allocated to the other forms of RE. Licensing and permitting procedures must be simplified and made more attractive for investors in the RE sector. Specifications and codes relevant to the utilization of RE need to be developed and enforced, including RE system identification and grid connection. It is crucial to designate a certain institution that can monitor and evaluate RE policies and collect relevant data to promote RE implementation in Palestine. A policy framework proposed to achieve future energy sustainability for Palestine.