As a hub for innovation, the United Arab Emirates is warmly embracing the new technologies. The UAE is adapting the clean energy initiative to transform to the green energy mediums. Accordingly, investors can start a solar power business in Dubai to participate in this revolution.
Globally, making a new business successful is never an easy task. If you are beginning from scratch, then it becomes even more challenging to succeed. However, the open corporate culture of the UAE is very friendly for new entrepreneurs.
Establishing a solar panel business in the UAE is a promising venture that is bound for sustainability. Also, it aligns with the international market trends and the initiative of the future net zero carbon emissions. With positive government support, a growing acceptance of this source of clean energy is highly substantial.
Key takeaways of the UAE solar energy sector
These are the notable insights of the solar power sector of Dubai, UAE.
- The UAE is taking new clean energy initiatives like solar power generation and installation to protect the environment.
- Solar energy generation helps reduce the pollution and makes the air cleaner in the UAE.
- The UAE’s solar power installed base will reach 48.85 gigawatts in 2030 from 10.70 gigawatts in 2025 at 35.48% CAGR. (Mordor Intelligence)
- “Dubai Clean Energy Strategy” introduced in 2015, will transform the power generation mix, with 25% clean energy by 2030 and 75% by 2050.
- “Mohammed bin Rashid Al Maktoum Solar Park” costing $14 billion will generate energy to power millions of homes by 2030.
- Starting a solar power business in Dubai is a profitable smart idea because the UAE government supports green energy projects.
- Register a solar energy company in Dubai to legally provide clean power generation or installation services across the UAE.
- Telling people about your Dubai solar power firm through social media, emails, and events can help your business grow.
Process to register a solar energy business in Dubai
This is the step-by-step procedure of registration of a license for a solar power business in Dubai.
- Plan your solar power business
- Build a strong team to work with
- Choose legal structure of solar energy business
- Submit all necessary documents
- Acquire initial approvals for solar business
- Register corporate banking account
- Get the business license
Now, we briefly look upon these steps that enable you to start a solar power business in Dubai.
Plan your solar power business
It is a must to make a proper plan before launching a new solar energy business in Dubai. Therefore, you must clearly understand the type of customers that you want to service with your solar power business. You can attract residential customers, commercial customers, or both.
While planning, it is essential to focus on the total operational expenses of your solar project. Also, keep note of the solar infrastructure installation costs on the premises of the clients. After all, it will help you to grasp the probability of the profits from the investment.
Build a strong team to work with
Key in going about and starting any business is having a fully capable team. Assemble a strong team that understands your goals, and who is ready to deliver from the get go. Because, a professional team with a full commitment, can strive your solar energy business to new heights.
Choose legal structure of solar energy business
Decide the legal structure of solar power business in Dubai, and apply with the Ministry of Energy and Infrastructure (MOEI). Forming a company as an LLC in Dubai is a much better option, to keep all legalities in check. Otherwise, there are chances of your company facing litigation in the UAE.
Submit all necessary documents
Prepare these obligatory documents and submit them to the regulatory authorities in Dubai.
- Copy of the passport
- Photocopy of the valid visa
- Business plan
- Memorandum of Association (MoA)
- Lease agreement or Ijari certificate (if applicable)
- Articles of Association (AoA), if necessary
Acquire initial approvals for solar business
Obtain the initial approval for your solar power business from the Ministry of Energy and Infrastructure (MOEI). Get the regulatory approval from the Dubai Electricity and Water Authority (DEWA) for your solar energy business. Moreover, secure the NOC from the Regulatory and Supervisory Bureau (RSB) in Dubai, if necessary.
Register corporate banking account
Streamline your financial transactions by opening a business bank account in Dubai. Remember, a corporate banking account increases the trustworthiness of a business across the UAE. Furthermore, it assists in executing corporate tax fillings at the end of the taxation year.
Get the business license
In case, the regulators ascertain that your solar power business meets all the requirements, you get the approval. After this final approval, your company gets the license from DEWA. In the event, your application faces rejection, you can appeal and solve the discrepancies to seek approval again.
Advantages of opening a solar power company in Dubai
These are the benefits of launching a solar energy company in Dubai, UAE.
Now, we briefly look upon these rewards of launching a solar power firm in Dubai.
Cheaper solar technology
One of the best things about starting a solar panel business right now is that the equipment is not as expensive as it used to be. A few years ago, solar panels and tools were really costly. Only, big companies were able to afford them.
Because of better technology and smarter ways to make them, the prices have gone down. This makes it easier for you to start your own business without spending too much. You can also offer better prices to your customers, which helps you get more sales and grow faster.
Supportive government initiatives
Many people don’t know this, but the UAE has initiatives that make venturing into the solar energy sector much easier. For example, Dubai has the Shams Dubai program, and Abu Dhabi supports solar rooftop projects. This government support enables newbie solar power firms to offer their services and grow without facing too many challenges.
The UAE government supports solar energy adoption for the long run. Getting the regulatory permission for setting up a solar power company is faster and easier. Lowering of the cost of solar panel installation is increasing the business scope.
Green environment and saving money
Dubai wants to make 75% of its energy from clean, renewable sources by the year 2050. This is included in the Dubai Clean Energy Strategy. This means there will be a lot of work for solar panel companies.
If you already run a business or are planning to start one, this is the best time. The city will need more solar panels, more skilled workers, and more companies like yours to reach this goal. You have a chance to be part of something important and grow your business while helping the environment too.
Challenges of the solar energy vertical in the UAE
Finding solutions to these challenges of the solar power vertical in the UAE is important.
- Lots of competition: The UAE is excellent place for solar power sector, so many companies are trying to get in on the action. So, there are now many solar businesses offering similar services, with new companies keep popping up too. This means it is harder for each company to be noticed and get new customers. Dubai solar businesses have to work extra hard to show why they are better than the rest.
- High initial costs: Installing a solar system can cost a lot of money in the beginning for many customers. Even though, solar panels can save money later, some people don’t want to spend so much at the start. This makes it harder for solar companies to convince customers to go solar. Some people might think it’s too expensive and choose to wait or not do it at all.
- Strict regulatory rules: Dubai Electricity and Water Authority (DEWA) has many rules that solar power companies must follow. These regulations are essential to ensure that everything is done safely and properly. Nonetheless, they can make things more difficult, as they take extra time, money, and effort. Dubai solar energy businesses must make certain they do everything precisely, without slowing things down.
Ways of promoting your solar power firm in Dubai
Create a marketing strategy for the promotion of new solar energy company in Dubai, UAE.
- Identify your purpose and values: You must know the purpose of your new solar power business in Dubai. After-all, you are going to fulfill the affordable greener electricity needs of the people in the UAE. Your company must pursue values like innovation, quality, sustainability and community which hold important place in UAE’s evolving market.
- Understand your target audience: The UAE comprises of vast majority of expatriates from different ethnicity backgrounds living harmoniously there. So, it is important to understand their overall lifestyle preferences. Furthermore, keep an eye on their behavioral trends and digital engagement patterns.
- Conduct competitor analysis: It is essential to comprehend what your competitors in the UAE’s solar power sector are offering. Find the gaps in the Dubai solar energy market and make them your competitive advantage. Make your company stand out by capitalizing on the services that others are missing.
- Establishing your brand: Setting clear objectives and following them helps prospective solar energy businesses in Dubai. Developing brand awareness among the masses assists in increasing in-person physical visits and online reach. Also, digital marketing, email marketing, and sponsorship can play a pivotal role in solidifying your brand in the UAE.
- Promotion on marketing channels: A solar power business in the UAE must set a clear road map regarding the usage of marketing channels. It can actively engage with potential customers through social media platforms like Facebook, Instagram, LinkedIn, X/Twitter, etc. Or, solar energy companies in Dubai can build a targeted email marketing list through which they can reach prospective clients. Also, corporate fairs and other industry meet ups can help them in building recognition among the customers.
Conclusion
Solar energy plants can lead to a decrease of 15,000 tons of carbon dioxide annually in the UAE. Consequently, it can greatly benefit the United Arab Emirates with the quality clean air. UAE’s focus on the green energy initiatives is enabling entrepreneurs to start solar power business in Dubai.
High demand for alternative energy mix can result in the success of photovoltaic businesses too. Growing consumption of the solar panels can make a new venture successful in no time. An expert team can contribute to a sustainable future while also achieving profit in the UAE market.
Your prospective solar power business in Dubai can thrive quite quickly. Hence, make the most of the opportunity for clean energy initiatives in the UAE. Undergo timely registration with the regulatory authorities with the help of professional business consultancy firms like KWS Middle East now.
FAQs about the solar power industry of the UAE
These are the answers to the common questions about the solar energy sector of Dubai, UAE.
A solar EPC (Engineering, Procurement, and Construction) contractor delivers complete turnkey solution, taking responsibility for every phase of project. EPC contractor companies provide end-to-end solutions for all aspects of a solar energy project in the UAE. They undertake everything from initial system designing/engineering, procuring solar equipment, constructing bases, installing panels, and ongoing maintenance.
Companies for becoming solar EPC contractors in the UAE must consider these things.
– Project pipeline and market access
– Full feasibility research
– Licensing and regulatory approvals
– Business structure and office requirements
– Technical capabilities and staff expertise
Licensing of a solar power firm in Dubai costs around AED 25,000 to AED 35,000. However, the procurement of equipment and industrial requirements need more expenditure. Setting up of the large-scale solar energy companies need budgets in the range of AED 250,000 to AED 1 million.
Yes, self production of the solar power in Dubai is completely legal on top of the residential and commercial properties. Dubai Electricity and Water Authority (DEWA) supports this action through clean alternative energy programs like Shams Dubai. This initiative allows building owners to install solar panels, and send extra electricity they generate to the main power grid.
Masdar City in Abu Dhabi was built to be one of the greenest cities in the world. It gets its power from a big solar power station that makes 10 MW of clean energy. Furthermore, it receives extra renewable energy from the rooftop solar panels that make 1 MW.
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