UAE Solar Power Capacity Reaches 6.7 GW in 2025, Set to Surpass 20 GW by 2030

The United Arab Emirates (UAE) continues to strengthen its leadership in renewable energy, adding nearly 1 gigawatt (GW) of new solar power capacity in 2025 and positioning itself for rapid growth over the next decade, according to industry projections.

New analysis from energy intelligence firm GlobalData indicates that the UAE’s total installed solar capacity increased from approximately 5.7 GW at the end of 2024 to around 6.7 GW by the close of 2025. The growth reflects the country’s long-term commitment to clean energy development, energy diversification, and reducing reliance on conventional fossil fuels.

UAE Solar Market Poised for Accelerated Growth

The pace of solar energy deployment in the UAE is expected to accelerate significantly in the coming years.

GlobalData forecasts that the country will add approximately 2.4 GW of new solar capacity in 2026 alone, taking cumulative installed solar capacity to nearly 9.4 GW.

Looking further ahead, the UAE’s solar industry is projected to expand at a compound annual growth rate (CAGR) exceeding 17% through 2035. Based on current estimates, the country could reach:

• 20 GW of installed solar capacity by 2030
• More than 30 GW of installed solar capacity by 2035

The anticipated expansion reinforces the UAE’s position as one of the fastest-growing renewable energy markets in the Middle East.

Solar Electricity Generation to Increase Nearly Fivefold

Alongside capacity growth, solar power generation is expected to rise substantially over the next decade.

Solar electricity production is forecast to increase from approximately 15.8 terawatt-hours (TWh) in 2025 to 75.4 TWh by 2035, highlighting the growing contribution of renewable energy to the country’s power supply.

As electricity demand continues to rise due to population growth, urban development, industrial expansion, and digital infrastructure investments, solar energy is expected to play a critical role in meeting future energy requirements.

Government Policies Driving Renewable Energy Expansion

Several key factors continue to support the UAE’s renewable energy transition.

The country benefits from:

• Strong government support for clean energy projects
• Abundant solar resources and suitable land availability
• Rising electricity demand across residential, commercial, and industrial sectors
• Long-term renewable energy targets and investment programs
• Competitive procurement frameworks attracting international developers

The UAE’s solar ecosystem also remains highly competitive, with global equipment manufacturers, project developers, and local utility companies contributing to market growth.

Chinese manufacturers continue to supply cost-effective solar modules and equipment, while European developers and engineering firms remain active participants in project development. State-backed utilities play a major role in procurement and long-term power purchase agreements.

Mega Solar Projects Fuel Capacity Growth

Large-scale utility solar projects continue to account for the majority of new renewable energy capacity additions in the UAE.

Among the most significant projects driving growth are:

Mohammed bin Rashid Al Maktoum Solar Park

One of the world’s largest solar developments, the project is expected to reach approximately 3.8 GW of capacity, serving as a cornerstone of Dubai’s clean energy strategy.

Al Dhafra Solar Project

Located in Abu Dhabi, the 2 GW Al Dhafra Solar Project ranks among the largest single-site solar facilities globally and plays a crucial role in the UAE’s renewable energy expansion plans.

The country’s Independent Water and Power Producer (IWPP) and Independent Power Producer (IPP) models, supported by long-term power purchase agreements, have successfully attracted international investment while delivering some of the world’s lowest solar electricity tariffs.

Rooftop Solar Adoption Gains Momentum

Beyond utility-scale developments, distributed solar installations are also gaining traction.

Commercial and industrial businesses are increasingly investing in rooftop and carport solar systems to lower electricity costs and improve sustainability performance.

The residential solar market is gradually expanding as well, supported by initiatives such as:

• Dubai’s Shams Dubai net-metering program
• Self-consumption frameworks introduced in Abu Dhabi
• Growing consumer interest in energy independence and sustainability

These programs are helping increase participation in renewable energy generation at the consumer level.

Battery Storage Investments Support Grid Stability

As solar energy accounts for a larger share of the electricity mix, the UAE is simultaneously investing in energy storage and grid modernization technologies.

Battery energy storage capacity reached approximately 518 megawatts (MW) in 2025 and is projected to grow to around 1.1 GW by 2030.

These investments are designed to enhance grid flexibility, improve energy reliability, and support the integration of intermittent renewable energy sources.

Combined with the UAE’s investments in natural gas-fired power generation and nuclear energy, battery storage systems will help ensure stable electricity supply while advancing the country’s clean energy goals.

UAE Strengthens Position as Regional Renewable Energy Leader

The UAE’s rapid solar expansion highlights its broader strategy of becoming a global leader in sustainable energy and low-carbon development.

Through large-scale renewable energy projects, advanced energy storage investments, supportive government policies, and international partnerships, the country is building one of the region’s most diversified and resilient energy systems.

With solar capacity expected to exceed 20 GW by the end of the decade, the UAE is well-positioned to play a leading role in the Middle East’s clean energy transition while supporting long-term economic growth and sustainability objectives.

UBS Appoints Alexander Seidler as Head of Sustainability and Climate Risk