Install solar panels and save 50% in power bills

Dubai — Homes and other establishments in Dubai can reduce up to 50 per cent of their electricity bills by using roof-top solar panels to meet their power needs and feeding any surplus energy to the emirate’s power grid.

The Dubai Electricity and Water Authority (Dewa) on Sunday announced the start of its smart initiative titled Shams Dubai, to regulate the generation of solar energy in buildings and their connection to Dewa’s grid.

Managing director and CEO of the Dewa Saeed Mohammed Al Tayer said the initiative encourages customers to produce clean power and connect it to Dewa’s grid.

“Customers can use the electricity they generate using photovoltaic (PV) panels. An offset between exported and imported electricity units is conducted and the customer account is settled based on this offset,” he said.

Al Maktoum International Airport last week became the first solar-powered project to be connected to the Dewa’s grid. Officials said the authority has received 11 more applications including that from the Dubai International Humanitarian City and some five households to produce about 8.5mW in total.

Waleed Salman, EVP of Strategy & Business Development at the Dewa, said roof-top solar panels could meet 20 to 50 per cent of power needs of their buildings.

So, with an initial investment, people going for solar power production can slash up to 50 per cent of their monthly electricity bills.

According to Armando Dominioni, senior manager of Regulations at the Dewa, Dubai homes could generate surplus energy when the consumption is low especially in summer months when occupants go on vacation.

In such situations, this surplus energy will be credited and used to offset their future consumption of electricity.

The Dewa is implementing a Net Metering scheme for the initiative and customers will have to pay a fixed amount of Dh1,500 for installing the meter and bear the cost of installing the PV system that can be connected to the grid.

The Dewa will not be providing any tax incentives or subsidies to the customers for installation of the system. According to officials, the incentive is the savings on the electricity bill, as customers will be purchasing less electricity from the Dewa to meet their needs.

An industry expert told Khaleej Times that commercial establishments with bigger solar systems which are paying higher electricity bills will find the project more attractive compared to home owners who will instal smaller systems.

For example, Salman said establishments paying 40 fils per unit in electricity bills may be able to reduce it to 20 fils as per the current rate of solar energy estimated at 5.84 US cents.

According to the expert, who did not wish to be named, installing a 10kW solar system in a villa with 100-square-metre roof will cost about $20,000.

“The initial investment is high for solar energy. But, what people need to realise is that after putting in that money, they don’t have to invest anything for next 25 years. They will be saving in their electricity bills without additional running cost,” he said.

Down the lane, experts forecast power tariffs to go up and solar energy to be more competitive than conventional energy.

The Dewa also announced the launch of a website within its portal www.dewa.gov.ae for the Shams Dubai initiative.

Research has shown that for every 100 mW of solar projects installed, it generates 600 million dollars of GDP growth. -sajila@khaleejtimes.com