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UAE’s Solar Energy Potential: Driving a Sustainable Future

UAE’s Solar Energy Potential

Insights

The UAE is unlocking its vast solar energy potential to build a sustainable future. With abundant sunlight and cutting-edge solar technologies, the nation is advancing its renewable energy goals and reducing its reliance on fossil fuels.

UAE’s Solar Energy Potential: Powering a Sustainable Future for the UAE

The UAE’s solar market is driven by government initiatives, including Concentrated Solar Power (CSP) project, growing electricity demand due to real estate boom and favourable geographic conditions. As part of the Dubai Clean Energy Strategy, Dubai aims to generate 75% of Dubai's power from clean energy by 2050.

Key Statistics

  • According to 2024 data, the United Arab Emirates (UAE) has about 7.90 gigawatts of solar energy installed, the largest in the Middle East.
  • On average, UAE receives 3,568 hours of sunshine per year, about 9.7 hours per day. 
  • The average peak sun hours in the UAE are 5.84 hours/day.

The UAE supports the renewable energy sector through intensive research and development and governmental support. As per the 2023 report, solar power is available in the country at around 1.35 cents per kilowatt-hour. According to the International Renewable Energy Agency (IRENA), the country is expected to install over 18 GW of renewables by 2030 with an expected 33 TWh of generation, up from 6GW installed capacity in 2023.

Furthermore, Dubai is implementing a “Smart City” strategy, focusing on 1,000 government services and development in six main areas including transportation, infrastructure, communications, financial services, urban planning and electricity. The strategy outlines steps to optimise energy and expand potential opportunities in the solar power market. Under the Shams Dubai solar program (DEWA), by 2030, Dubai aims to reach a solar capacity of 5,000 megawatts, compared to 125MW of solar capacity in 2019.

UAE Set to Lead Middle East’s Solar Power Market: Key Projects Highlights

Al Dhafra Solar PV: Inaugurated in November 2023, Al Dhafra Solar PV is the world’s largest single-site solar power plant with a capacity of 2 GW. It spans more than 20 square kilometres of desert and uses almost 4 million solar panels, which deploy innovative bi-facial technology.

Warner Bros. World Abu Dhabi: Inaugurated in March 2023, this solar rooftop PV project includes an estimated 16,000 solar modules placed across the theme park’s roof area of 36,000 square metres and can produce nearly 40% of its annual energy demand. The total installed capacity is 7MWp.

Shams Solar Power Plant: Inaugurated in 2013, it is the first operational utility-scale CSP plant in the MENA region with an installed capacity of 100MW. The plant is located in the Western Region of Abu Dhabi.

Mohammed bin Rashid Al Maktoum Solar Park: The largest single-site solar park in the Middle East, based on the IPP model is expected to generate 5,000 MW by 2030. The fourth phase of the project began operations in the last quarter of 2020 with a capacity of 5,000 MW. The project will have the world’s tallest solar tower, measuring 260 metres.

Figure: Solar Installation Cost Breakup

Figure: Solar Installation Cost Breakup

Cost Breakup: The costs are divided into two categories: hardware costs and soft costs. Hardware which includes solar panels, solar inverter(s), and system balance (racking and mounting, wiring, etc) accounts for 46% of the total installation cost. Soft costs account for 54% of the total cost. Under this, installation and labor costs, sales and marketing costs, permits and inspection fees, and installer profits are all included.

Key Companies Offering Solar Panel and other Components in the UAE:

Key Companies Offering Solar Panel and other Components in the UAE:

Key Certification for solar panels in UAE

Solar panels in the UAE must meet various national and international standards to ensure quality and safety:

Emirates Authority for Standardisation and Metrology (ESMA) Certification: The certification ensures that solar panels meet UAE national standards. 

International Electrotechnical Commission (IEC) Certification: Widely recognized international standards such as IEC 61215 for crystalline silicon solar modules and IEC 61730 for safety qualification.

Recent Investments in the UAE Solar Market

  • In January 2025, Emirates Water and Electricity Company (EWEC) issued a request for proposals (RFP) to pre-qualified companies for the development of the Zarraf Solar PV Independent Power Producer (IPP) project. The project is located in the Al Zarraf area of the Al Dhafra region and aims to have a 1,500 MW power generation capacity.
  • In August 2024, Khalifa Economic Zones Abu Dhabi (KEZAD Group), the largest operator of integrated and purpose-built economic zones and UAE-based Abundance Solar Panels Industries, announced the signing of a 50-year land lease agreement for the establishment of a solar power plant in KEZAD Area A – Al Ma'mourah. The plant will manufacture solar panels and integrated photovoltaic modules for customers across industries with an overall investment of USD 15 million.  
  • In December 2023, the Emirates Waste to Energy Company, a joint venture between BEEAH and Masdar, revealed plans to transform a landfill in Sharjah into a solar farm. The company’s Sharjah Waste to Energy Facility, which was completed in 2022, has the capacity to process 300,000 metric tons of non-recyclable waste annually, generating 30 megawatts of electricity. Once Sharjah reaches its zero-waste goals, the nearby landfill will be converted into a 120-megawatt solar energy farm.

Conclusion

The UAE has great potential for solar energy development, supported by government initiatives and investments.  Solar energy in the UAE also offers economic benefits, such as job creation, lower energy costs, and enhanced energy security. It is an attractive option for the country as the UAE has abundance of sunshine and can generate electricity from solar panels throughout the year.

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30 North Gould Street, Sheridan, WY 82801

+1-415-325-5166

63 Fiona Drive, Tamworth, NSW

+61-448-061-727

C130 Sector 2 Noida, Uttar Pradesh 201301

+91-858-608-1494

40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.

+63-287-899-028, +63-967-048-3306

6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London

+44-753-713-2163

193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City

+84-865-399-124