Oman's small-scale solar sector projected to reach 130 MW by year-end

Observer

25-05-2025

MUSCAT: A significant uptick in small and medium-sized solar PV investments is set to boost the aggregate generation capacity of these installations to around 130 MW by the end of 2025, up from 92.5 MW at the end of last year.
According to Nama Electricity Distribution Company (NEDC), the main national distribution utility of the Sultanate of Oman (with the exception of Dhofar Governorate), more than 400 new applications for solar PV connections were received in 2024 alone. They are set to join an expanding portfolio of customers totalling 856 as of the end of last year.
'With a goal of achieving more than 20% of the renewable energy consumption by 2040 as part of Oman Vision 2040 goals, efforts are underway to develop, plan and promote eco-friendly energy systems,' NEDC – part of Nama Group – stated in its newly released Annual Report for 2024.
'NEDC plays a crucial role in this transition, overseeing small and medium-sized grid-connected solar PV projects through a dedicated unit. These projects adhere to technical guidelines and regulations set by the Authority of Public Services Regulatory (APSR) across three stages: Initial Enquiry, Design Approval and Commissioning. The adoption of solar energy aims to reduce carbon emissions, improve air quality and preserve natural resources,' the state-owned utility added.
Of the 856 customers with installed solar PV capacity to date, the lion's share (476 customers) are from the residential sector, with a combined capacity of 5.948 MW. Around 60.262 MW, representing two-thirds of total installed capacity, is contributed by commercial customers (totalling 178 in number). Government customers, numbering 119, account for 20.815 MW of capacity. Making up the rest are 83 agricultural customers with a capacity of 5.475 MW.
Aside from the obvious environmental benefits, investments in small and mid-scale solar PV capacity are also contributing to national development by creating employment opportunities, boosting local content and enhancing relevant technical capabilities.
'NEDC has begun implementing solar energy projects across Oman, showcasing its commitment to the country's energy transition and renewable energy potential. The goal is to attain technical, social and economic benefits while serving as a public advocate for renewable energy technologies,' it noted.
Significantly, rising demand for solar rooftop and ground-mounted systems has sparked a proliferation of contractors.
Another model that's gaining traction, particularly among large commercial customers, is the Build, Own, Operate (BOO) paradigm. In this model, the contractor finances, installs and owns the system, selling electricity to the customer under a long-term agreement.
Some niche players have also begun to offer a subscription-based Solar as a Service (SaaS) model. In this model, a customer pays a flat or performance-based monthly fee for access to solar power, while the contractor retains ownership and responsibility for maintenance.