How Shams Dubai Net Metering Program Works
In 2015, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has called for solar panels to be installed on every roof in Dubai by 2030, as part of the Emirates vision to produce 75% of its energy from clean sources by 2050. To get there in time, the Dubai Clean Energy Strategy 2050 also calls for interim targets of 7% of solar power by 2020, and 25% by 2030.
To help achieve this ambitious goal, the Dubai Electricity and Water Authority (DEWA) launched the Shams Dubai Net Metering program in early 2015. This program allows DEWA customers to install solar panels on their property (e.g. factory, warehouse, building, school), and utilize the produced solar energy to reduce their monthly electricity bill. Any surplus electricity that cannot be used immediately will be credited by DEWA at the retail rate, further reducing the electricity bill in the next month.
By the end of January 2022, DEWA connected more than 6,939 solar power systems in Dubai to its grid with a total power capacity of more than 407.5 MW.
How to Connect with Shams Dubai Net Metering program?
Shams Dubai’s website provides all the information you need if wish to proceed with a solar installation. Such information includes:
- Basic details about solar systems
- List of DEWA approved solar contractors and consultants that are authorized to install solar plants in Dubai
- Details about the documents and procedures required as part of the connection process (handled by the customer appointed contractor or consultant), which include
- Obtaining a DEWA, No objection certificate (NOC)
- Obtaining DEWA Design approval
- Steps for inspection and connection of the solar system
- Steps for solar plant commissioning
The website also includes a solar calculator application that estimates how much you can save on their electricity bills if you proceed with a solar installation.
More information can be found on the Shams Dubai website.
How does the Shams Dubai Net Metering program work?
Shams Dubai solar program is based on the principle of ‘net metering. This allows you to install solar panels to produce your own power, to reduce your electricity bill every month. Any surplus electricity not used immediately is sold back to the grid at the same price, and at the end of the month, only the net amount is billed to you. If you produce more energy in one month than you have consumed, DEWA allows rolling over these kWhs to the next month.
The big advantage of net metering is that you can stay connected to DEWA’s grid, thereby combining the 24/7 reliability of a grid connection with the lower costs of solar energy.
Benefits of Shams Dubai Net Metering program
- Solar systems allow you to reduce operating costs and save on your monthly electricity bills.
- Credits generated when a solar system produces excess electricity can be stored indefinitely and offset consumption in future electricity bills.
- Shams Dubai is encouraging to go green, meet their sustainability goals and most importantly, help save the environment.
- Unlike off-grid PV systems, PV systems connected via Net Metering do not need to rely on expensive battery storage systems because the process of generating and storing solar credits effectively allows using DEWA’s grid-like battery system, allowing to draw electricity from DEWA when solar power is inadequate.
How much you can save by Shams Dubai Net Metering Program
With the excellent solar radiation available in Dubai, solar power is now cheaper than DEWA’s ‘red slab’ tariff rate of AED 0.445 / kWh for most commercial and industrial customers. This is particularly true for factories and warehouses with large rooftops in Jebel Ali Free Zone, Dubai Investments Park, Dubai Logistics City, and Dubai Industrial City.
To maximize savings per kWh, with significant air conditioning loads you chose to cover around 80% of their winter electricity consumption (i.e. the kWhs consumed in January / February), as this means that every kWh from solar saves kWs in DEWA’s most expensive red tariff slab. Over the whole year, this allows a typical user to offset around 50% of their consumption with cheaper solar energy.
For users with large and stable loads (e.g. factories or cold-storage warehouses), it is possible to offset over 90% of DEWA electricity consumption with solar energy, thereby saving hundreds of thousands of dirhams per year.
How to Get Started with Shams Dubai Net Metering Program
If you decide to equip your home, Factory or Warehouse with grid-tied solar, you could benefit from Shams Dubai Net Metering Program.
At Powernsun, we’d love to discuss your solar needs. Contact us today to learn more about Shams Dubai Net Metering Program and how solar can work for you! Call us at +971 4 3686393 & Email: info@powernsun.com
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