Policy and Regulatory Framework for Solar PV Development: Why They Matter

Over the years, it has become central to achieving net-zero emissions globally. However, for the world to meet the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario, the remarkable growth in solar PV deployment must continue to accelerate. 

As the world transitions into a cleaner energy mix, various stakeholders have given more importance to solar photovoltaic (PV) technology. Harnessing energy from the sun, this technology offers top-notch modularity — meaning it can serve diverse applications, ranging from residential rooftop systems to large-scale utility installations. 

Over the years, it has become central to achieving net-zero emissions globally. However, for the world to meet the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario, the remarkable growth in solar PV deployment must continue to accelerate. 

The need for policies and regulations

Projections indicate that by 2028, annual solar PV and wind capacity additions will surpass 700 GW, more than doubling the installations recorded in 2022. Achieving these ambitious targets requires robust and forward-looking policies.

The IEA emphasised that policies and regulatory frameworks are the linchpins of solar PV growth around the world. Key mechanisms that governments must consider include competitive bidding processes that drive down prices and ensure cost-effective procurement of solar energy. 

Feed-in tariffs or guaranteed pricing for renewable energy producers meanwhile encourage early-stage investment. Net metering is another essential mechanism that allows consumers to offset electricity costs by feeding surplus energy back into the grid.

UAE’s approach to solar PV adoption

Back in 2017, the United Arab Emirates (UAE) launched its landmark UAE Energy Strategy 2050. It’s the country’s first unified energy strategy “based on balancing supply and demand with environmental obligations.” The strategy, which has been updated in 2023, aims to triple renewable energy's share and invest AED 150 to 200 billion by 2030 to meet the growing energy demand.

Emerging as a role model for other countries, the UAE’s regulatory landscape for renewable energy, including solar PV, is characterised by a mix of federal and emirate-level policies.

At the federal level, the Emirates National Grid (ENG) plays a pivotal role in ensuring that electricity generated from solar and other renewables is seamlessly distributed across the seven emirates. Each emirate, like Dubai and Abu Dhabi, also boasts programmes to promote solar adoption. 

For instance, the Dubai Electricity and Water Authority (DEWA) unveiled the Shams Dubai Net Metering programme to empower customers to install solar panels on their properties. Those who will install can offset electricity costs by exporting surplus power to the grid. Individual plots can install systems up to a maximum capacity of 2,080 kW, while an aggregate limit of 5 MW applies to single premises.

Qatar and Saudi Arabia’s efforts 

In Qatar, it’s the Qatar National Vision 2030 that steers the country towards a more sustainable future. 

At the forefront of leveraging abundant sunlight to develop both large-scale and distributed solar energy projects is the Qatar General Electricity and Water Corporation (KAHRAMAA). KAHRAMAA, which oversees the transmission and distribution of electricity, has developed technical specifications for standalone solar PV systems. These guidelines are designed to ensure safety, reliability, and quality for applications, such as solar-powered street lighting, water pumping systems, rooftop solar installations for local energy consumption, and hybrid systems combining solar with other energy sources.

In August 2024, KAHRAMAA introduced BeSolar, a service that installs solar energy systems in homes, farms, factories, and other properties as part of Qatar's National Renewable Energy Strategy. The initiative also includes a net billing programme to encourage solar adoption. With this programme, customers use solar energy for their needs, and any surplus electricity is sent to the grid. A bidirectional meter tracks this surplus, and its value is deducted from future bills.

Saudi Arabia also prides itself on initiatives like the National Renewable Energy Programme (NREP) and other regulatory frameworks that encourage solar energy use, with the Water and Electricity Regulatory Authority (WERA) as its regulator for renewable energy and other types of electricity.

A few years ago, WERA introduced the 2020 Solar Small-Scale Regulatory Framework, which allows solar PV systems between 1 kW and 2 MW to connect to the grid. It also features a net metering scheme. Then, in 2022, it launched the Self-Consumption Regulatory Framework, expanding support for renewable energy systems for self-consumption, including wind and off-grid solar. This framework promotes private ownership of solar systems with no upper capacity limits.

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