It’s no secret that living in Dubai, the Middle East’s leading financial hub, comes with its perks. We get to enjoy beautiful weather all year round, spectacular beaches, and maximum luxury. However, as great as it is, not everything is perfect, especially when it comes to finances. Since 2014, Dubai has mandated that all non-residential properties (except for a select few government-approved luxury structures) must comply with the city’s sustainability polices and go solar. This is part of the emirate’s plan to reduce its dependence on crude oil and the associated energy costs.
The question is, how much will this decision benefit those living and working in Dubai? We have crunched the numbers to find out. Let’s take a look.
How Much Does Going Solar Cost?
The good news is that installing solar panels for electricity generation is no longer reserved for the wealthy, who could previously afford it. Thanks to the Dubai solar lease program, launched in 2014 and designed to promote renewable energy in the emirate, there are now more options for those looking to install solar on their rooftops. The Dubai solar lease program offers interested parties the chance to purchase solar power at an affordable rate.
The cost of solar installation varies from property to property, but in general, a 3-kilowatt system (which provides the average household with around 5,000 kilowatt hours of electricity per month) costs around AED 9.99 per day (USD 2.77/AD), while a 6-kilowatt system (12,000 kilowatt hours of electricity per month) rings in at AED 14.99 per day (USD 4.11/AD). AED 15 is paid annually as a premium, along with AED 2.65 per day (USD 0.75/AD) for electricity, to AED 17.34 per day (USD 5.1/AD) for gas (petrol). According to figures released by the Dubai Electricity and Water Authority (DEWA), the average household in Dubai uses 7,500 kilowatt hours of electricity per month. This means that the average solar panel system would generate around $150 per month in savings, assuming a 5 percent electricity reduction.
How Does Going Solar Impact Your Electricity Bill?
Going solar doesn’t just reduce your electricity bill by generating your own electricity – it also helps to stabilise your energy supply and protect you from energy price fluctuation, as we mentioned above. There are a few reasons why this could be the case. First, solar power generation is highly dependant on sunshine and weather patterns. Even in the middle of a sunny day, the output of the average rooftop solar installation won’t be high enough to meet the average household’s needs. Second, not all solar energy systems are built equal. Some have larger batteries that can store more energy, allowing for smoother energy generation and fewer fluctuations. Third, the more electricity you produce, the more likely you’ll be to generate sales for your property. This is especially relevant for commercial and industrial buildings, where businesses can pay for electricity generated on-site to reduce their monthly bills.
Do I Need To Be In Dubai To Benefit From Going Solar?
Yes, you do indeed need to be in Dubai to take advantage of the city’s solar policies and programs. However, you also need to have a roof to put solar panels on. If you don’t own the land your house is built on, you’ll either need to rent it or ask neighbors for permission to place panels on their roofs. Unfortunately, this isn’t something that can be readily arranged, especially in a city where space is highly prized. If you do own the land, the sky is the limit.
Dubai is a huge place, with over 500,000 residents currently living in the emirate. It’s not just about going solar – there are also a number of financial incentives for residents and businesses to conserve water, reduce energy consumption, and generate their own electricity – even for homes that aren’t in fact connected to the grid. Not only does this help to reduce your personal energy bill, but it also helps to protect the environment – not to mention boosting your quality of life.
If you live in Dubai and are interested in going solar, make sure you contact one of the city’s many reputable contractors. They will be able to give you an idea of what you’re paying for and what you’re getting for your investment. In the meantime, continue reading our blog for more information on sustainable living in Dubai.