UAE Solar Energy Market Size to Surpass 73.5 TWh by 2033: Growth & Insights

UAE Solar Energy Market Overview

Market Size in 2024: 11.0 TWh

Market Size in 2033: 73.5 TWh

Market Growth Rate 2025-2033: 22.33%

According to IMARC Group's latest research publication, "UAE Solar Energy Market Size, Share, Trends and Forecast by Type and Region, 2025-2033", the UAE solar energy market size was valued at 11.0 TWh in 2024. Looking forward, IMARC Group estimates the market to reach 73.5 TWh by 2033, exhibiting a CAGR of 22.33% from 2025-2033.

Growth Factors in the UAE Solar Energy Market

• Government Support and Policy Initiatives

The UAE’s commitment to renewable energy is a cornerstone of its solar market growth, driven by ambitious government policies like the UAE Energy Strategy 2050 and Dubai Clean Energy Strategy 2050. These initiatives aim to significantly increase the share of clean energy, with solar power as a key focus. Programs like Shams Dubai encourage businesses and households to install rooftop solar panels, offering incentives such as net metering, which allows users to offset electricity bills by feeding surplus energy into the grid. For example, the Mohammed bin Rashid Al Maktoum Solar Park, one of the world’s largest solar projects, exemplifies government-backed efforts to scale up solar infrastructure, attracting global investment and fostering innovation.

• Abundant Solar Resources

The UAE’s geographical advantage of intense sunlight for over 350 days a year makes it an ideal location for solar energy generation. This natural abundance reduces the cost of energy production and enhances efficiency, making solar projects highly viable. The Noor Abu Dhabi solar plant, generating enough power for approximately 90,000 households, showcases how the UAE leverages its sunny climate to produce clean energy at scale. This resource availability not only supports large-scale solar farms but also encourages smaller installations in residential and commercial sectors, driving widespread adoption and positioning the UAE as a regional leader in solar energy production.

• Technological Advancements

Innovations in solar technology are propelling the UAE’s solar market forward by improving efficiency and reducing costs. Bifacial solar panels, which capture sunlight on both sides, are increasingly used in projects like the Al Dhafra Solar Project, powering around 200,000 homes. Additionally, advancements in energy storage systems ensure a reliable power supply, addressing the challenge of intermittent sunlight. For instance, LONGi’s Hi-MO X6 Anti Dust Module, launched in 2024, tackles dust accumulation in desert conditions, boosting panel performance. These technological strides make solar energy more competitive, encouraging adoption across residential, commercial, and industrial sectors.

Key Trends in the UAE Solar Energy Market

• Rise of Rooftop Solar Installations

A significant trend in the UAE is the growing popularity of rooftop solar systems, driven by initiatives like Shams Dubai. This program has led to thousands of installations across industrial, educational, and residential buildings, with Dubai Electricity and Water Authority (DEWA) reporting over 7,000 installations by September 2024. These systems allow businesses and homeowners to generate their own electricity, reducing costs and supporting the UAE’s clean energy goals. For example, hotels and resorts are adopting rooftop solar to appeal to eco-conscious tourists, lowering energy expenses while aligning with sustainability objectives, making this a key driver of market expansion.

• Public-Private Partnerships

Collaboration between the UAE government and private sector is accelerating solar market growth. Public-private partnerships (PPPs) enable large-scale projects by combining government support with private investment and expertise. The Al Dhafra Solar Project, a 2,000 MW initiative developed by Abu Dhabi National Energy Company (TAQA), Masdar, EDF Renewables, and Jinko Power, is a prime example. These partnerships foster innovation, reduce project costs, and attract international investors. By creating a favorable environment for collaboration, the UAE is scaling up its solar infrastructure and establishing itself as a global hub for renewable energy innovation.

• Integration of Smart Grid Technologies

The UAE is modernizing its electricity grid to integrate solar power more effectively, a trend driven by the need for stable and efficient energy distribution. Smart grid technologies, combined with Internet of Things (IoT) solutions, enable better management of solar energy generation and consumption. For instance, upgrades to the grid infrastructure support projects like the Mohammed bin Rashid Al Maktoum Solar Park, ensuring seamless energy flow to millions of homes. This trend enhances the reliability of solar power, even in remote areas, and supports the UAE’s vision of a sustainable, technology-driven energy ecosystem.

Claim Your Free UAE Solar Energy Market Analysis Sample Report Here

UAE Solar Energy Market Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Type:

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Regional Insights:

• Dubai
• Abu Dhabi
• Sharjah
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined, along with the profiles of the key players.

Future Outlook

The UAE’s solar energy market is poised for robust growth, driven by its commitment to sustainability and global leadership in renewable energy. With ambitious targets to generate a significant portion of its energy from clean sources by 2050, the UAE is investing heavily in projects like the Mohammed bin Rashid Al Maktoum Solar Park, set to reach 5,000 MW by 2030. Continued advancements in solar technology, such as improved energy storage and dust-resistant panels, will enhance efficiency and affordability. Expanding regulations for distributed generation across all emirates will further boost rooftop solar adoption. As global demand for clean energy rises, the UAE’s strategic initiatives and partnerships will solidify its position as a pioneer in the renewable energy landscape, creating opportunities for innovation and economic growth.

Get the Complete Report Today with an Exclusive Discount!

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:  

IMARC Group 

134 N 4th St., Brooklyn, NY 11249, USA 

Email: sales@imarcgroup.com 

Tel No:(D) +91 120 433 0800 

United States: +1-631-791-1145