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Policy changes, market updates, and technology news from across Gulf Region.
Dubai Electricity and Water Authority (DEWA) announced that the Shams Dubai distributed generation program has now connected over 250 MW of rooftop solar across more than 12,000 residential, commercial, and industrial properties in the emirate. The program, launched in 2014 as part of Dubai's Clean Energy Strategy 2050, provides net metering at the prevailing retail tariff for surplus generation injected into the grid. With Dubai targeting 75% clean energy by 2050 โ and 25% by the end of 2030 โ Shams Dubai is a foundational pillar alongside the Mohammed bin Rashid Al Maktoum Solar Park, which is on track to become the world's largest single-site solar facility. Residential adoption has accelerated significantly since 2024 following DEWA's introduction of a streamlined online application portal that reduces approval time to as little as 7 working days. Federal-level support continues through the UAE's zero-rated VAT classification for solar equipment under Federal Decree-Law No. 8 of 2017, which removes the standard 5% VAT on PV modules, inverters, and battery storage. Combined with the UAE's exceptional solar irradiance (averaging 6.4 peak sun hours daily) and low installed costs (USD 0.65โ0.85 per watt for residential systems), simple payback periods for residential solar in Dubai have fallen below 5 years for systems sized to maximize self-consumption. Etihad ESCO continues to offer off-balance-sheet financing for buildings of 10 apartments or more under DEWA's Property Assessed Clean Energy framework.
The GCC Standardization Organization (GSO) reports that high-efficiency heat pump installations for residential cooling applications have grown 47% year-over-year across the Gulf states in 2025, with the UAE and Saudi Arabia leading adoption. Cooling typically represents 60โ70% of residential electricity consumption in GCC countries, making the move from older split-AC units (typical SEER 8โ10) to modern variable-speed inverter heat pumps (SEER 18โ24) one of the highest-impact efficiency upgrades available to homeowners. The Emirates Authority for Standardization and Metrology (ESMA) and the Saudi SASO have both updated minimum energy performance standards (MEPS) for residential air conditioners over the past two years, effectively phasing out the lowest-efficiency units from the market. New units sold in the UAE must now meet a minimum SEER of 14, while Saudi Arabia's MEPS has been updated to align with similar thresholds. Combined with the falling cost of variable-speed compressors and the rapid growth of distributed solar in the region, the economic case for high-efficiency heat pumps has strengthened significantly. Industry analysts at the Emirates Solar Industry Association predict that by 2028, more than 60% of new residential AC installations in the GCC will be inverter-driven heat pumps with SEER ratings above 18, dramatically reducing peak grid demand and household electricity bills.
Saudi Arabia's Ministry of Energy and the Renewable Energy Project Development Office (REPDO) have launched a nationwide residential rooftop solar pilot program targeting 50,000 homes across Riyadh, Jeddah, Dammam, and three secondary cities by end of 2027. The program is part of the broader Vision 2030 strategy to derive 50% of the kingdom's electricity from renewable sources by 2030. Pilot participants benefit from streamlined Saudi Electricity Company (SEC) interconnection processes, subsidized installation costs through SIDF financing, and a 10-year warranty pool covering eligible equipment. While the kingdom's residential electricity tariffs remain among the lowest in the world (SAR 0.18/kWh for the first 6,000 kWh of monthly consumption), the program's economics rely primarily on tariff subsidies being phased down for high consumption tiers โ where rates can reach SAR 0.30/kWh โ combined with the kingdom's exceptional solar irradiance averaging 6.6 peak sun hours daily. The 0% import duty on solar equipment under the GCC Unified Customs Tariff classification continues to keep equipment costs competitive, with installed system prices for residential systems averaging USD 0.70โ0.90 per watt. The Saudi Standards, Metrology and Quality Organization (SASO) has also issued updated technical specifications for residential PV equipment to ensure compatibility with the country's harsh thermal conditions, where ambient temperatures regularly exceed 45ยฐC in summer.