Dubai reviews rooftop solar cap

8 October 2024

 

Dubai is reviewing the current cap or upper limit for the capacity of rooftop solar installations in the emirate, according to industry sources.

Two sources affiliated with the state utility and regulator said that they cannot confirm whether the review gears towards implementing a higher limit.

A cap was introduced in 2020, limiting the capacity of rooftop solar installation to 2MW and discounting ground-mounted solar projects. It is understood that this cap was further reduced to 1MW in 2022.

"There have been rumours, but we will wait until we see something written in the law," notes a third source.

State utility Dubai Electricity & Water Authority (Dewa) previously said that caps were introduced to safeguard the stability of the emirate's electricity grid.

In September, the UAE's Ministry of Energy & Infrastructure and Sharjah-headquartered Etihad Water & Electricity (Etihad W&E) announced a rooftop solar photovoltaic (PV) panel scheme in the UAE's northern emirates.

Under the Distributed Solar System (DSS) programme, Etihad W&E's residential customers, industries and farms will be able to install rooftop solar panels to generate power, which will be sent back to the grid to boost the overall supply of renewable energy in the northern emirates.

Unlike in other jurisdictions, consumers under the DSS programme will not be able to use the energy generated by their solar panels directly, but they will benefit from reduced energy bills in return for contributing renewable energy to the grid.

Customers enrolled in the programme will have two meters: one for energy sent to the grid and one for energy used from the grid.

Each month, the energy sent and used will be compared. If more energy is sent than used, the extra will be credited to their account for use later in the same year.

The UAE aims to reach net-zero carbon emissions by 2050. The state's updated energy diversification strategy also aims to triple the contribution of renewable energy to the total electricity production mix and invest AED150bn-AED200bn ($40.8bn-$54.5bn) by 2030 to meet the country’s increasing demand for energy.

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Jennifer Aguinaldo
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