The project, which is the largest photovoltaic solar field in Gaza, will generate 0.5MW of electricity each day and more investment has been pledged towards other projects that make drinking water safer.
According to the EU, 97% of the water in the Gaza Strip is unfit for consumption and conflict and a lack of resources have led to critical water insecurity in the Strip.
The EU says it will invest €21m during 2018 to help create the sustainable access to energy, clean drinking water, and sanitation services for everyone.
"Limited energy supplies in Gaza are one of the main challenges when improving access to safe and drinkable water to the local population," says Johannes Hahn, EU Commissioner for European Neighbourhood Policy and Enlargement Negotiations.
"The photovoltaic solar field is essential to respond to the urgent water needs in Gaza and create dignified living conditions for its people, thus mitigating tensions in a highly conflict sensitive area."