Costs remain a hurdle for the application of solar energy on a small-scale in Dubai, even after the government issued a new framework allowing customers to install their own solar power generation systems, experts said.
Dubai Electricity and Water Authority (Dewa) at the end of last month announced standards for installing photovoltaic (PV) panels that allow customers to produce their own electricity, then feed any excess into the grid in exchange for credit towards their utility bills.
Saeed Al Tayer, the chief executive of Dewa, said that manufacturers of solar power equipment should begin registering their products with the authority “as soon as possible”.
While Dubai has made headlines with the world’s cheapest utility scale solar PV tariffs, smaller scale applications remain unfeasible, according to Cornelius Matthes, the managing director of the Mena region for Building Energy, an Italian clean energy firm.
“[Residential] solar systems are substantially more expensive than the larger, commercial and industrial systems,” he said.
The relatively low level of residential electricity prices in Dubai means the payback for installing a solar system in a home is well over 10 years, according to Mr Matthes.
Current tariffs amount to 23 fils per kilowatt hour (kWh) under 2000 kWh a month, and Dewa estimates one person uses about 20,000 kWh a year. Based on those statistics, a one-bedroom flat would have an average yearly power bill of around Dh4,600.
“[Regulatory authorities] should increase the price per kilowatt faster – that is the best incentive to begin saving energy, and then to think about residential solar,” said Mr Matthes.
He said that because of the low prices there is not enough of an incentive to incorporate technologies such as small scale rooftop solar PV systems.
In comparison, European power bills are almost four times that price, with the energy information administration reporting an average of 20 euro cents (83 fils) per kWh. In the residential segments of some countries such as Belgium one out of 13 homes is equipped with PV systems, according to the European PV Industry Association.
The high turnover of the mostly expatriate-dominated population is also an obstacle to a return on investment.
Expatriates make up about 84 per cent of the UAE’s total population, according to data from Pew Research.
“Almost nobody in Dubai plans to stay more than five years and the planning horizon you need to purchase a solar home system is much longer,” said Mr Matthes.
Dubai-based MAF Dalkia, an energy management services company, said that most people were willing to wait only three to five years before seeing a return on investment. Francisco Marques, business development and marketing director for MAF Dalkia, said that the company’s current position was to provide corporate customers with short-term paybacks such as optimising the technology already in place to provide immediate energy savings.
The company delivers energy saving solutions to various firms, including optimising seven Dewa-owned buildings across Dubai. Mr Marques said that in today’s current market, incorporating solar PV units for residential or commercial buildings was not a profitable solution.
“With the figures that we’ve had until now, in terms of electricity tariffs and investment costs for PV technology, it just isn’t feasible,” he said.
The development of dedicated financing packages in cooperation with local banks could help, according to Mr Matthes.
“Or with a bold move, even own or co-own residential solar systems, creating a new business line,” he said.
Such a scheme would make small-scale solar projects more bankable, increase jobs and make the overall power system more diversified and reliable.
Mr Al Tayer said in the statement at the end of last month announcing the new framework that “Dewa will periodically review the performance of these systems and their compatibility, and improve the process to ensure the solar power technologies are seamlessly integrated with the current power production systems”.
Recent bids submitted to Dewa for the second phase of the Mohammed bin Rashid Al Maktoum solar park – which will eventually produce 1,000 megawatts – demonstrate the competitiveness of solar PV technology at the utility scale.
A consortium led by Riyadh-based Acwa Power won the contract to build and operate the phase with a final price of 5.84 cents per kWh – the cheapest on record and much lower than the 9 cents for electricity produced from natural gas.
lgraves@thenational.ae
Follow The National's Business section on Twitter
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Switch%20Foods%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Edward%20Hamod%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Plant-based%20meat%20production%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2034%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%246.5%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Based%20in%20US%20and%20across%20Middle%20East%3C%2Fp%3E%0A
Honeymoonish
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Elie%20El%20Samaan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENour%20Al%20Ghandour%2C%20Mahmoud%20Boushahri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
%20Ramez%20Gab%20Min%20El%20Akher
%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
CONFIRMED%20LINE-UP
%3Cp%3EElena%20Rybakina%20(Kazakhstan)%3Cbr%3EOns%20Jabeur%20(Tunisia)%3Cbr%3EMaria%20Sakkari%20(Greece)%3Cbr%3EBarbora%20Krej%C4%8D%C3%ADkov%C3%A1%20(Czech%20Republic)%3Cbr%3EBeatriz%20Haddad%20Maia%20(Brazil)%3Cbr%3EJe%C4%BCena%20Ostapenko%20(Latvia)%3Cbr%3ELiudmila%20Samsonova%3Cbr%3EDaria%20Kasatkina%3Cbr%3EVeronika%20Kudermetova%3Cbr%3ECaroline%20Garcia%20(France)%3Cbr%3EMagda%20Linette%20(Poland)%3Cbr%3ESorana%20C%C3%AErstea%20(Romania)%3Cbr%3EAnastasia%20Potapova%3Cbr%3EAnhelina%20Kalinina%20(Ukraine)%3Cbr%3EJasmine%20Paolini%20(Italy)%3Cbr%3EEmma%20Navarro%20(USA)%3Cbr%3ELesia%20Tsurenko%20(Ukraine)%3Cbr%3EEmma%20Raducanu%20(Great%20Britain)%20%E2%80%93%20wildcard%3C%2Fp%3E%0A
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
More coverage from the Future Forum
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
