‘Ease red tape to lift solar use’
Installation of solar-energy systems by businesses and government agencies in Dubai has risen markedly. But their use at residential buildings remains limited. Simplifying the approvals process would be helpful, Vesela Todorova reports
DUBAI // Cutting red tape and providing easier financing may help to boost the use of solar power in residential buildings, experts said.
The number of solar energy systems installed in the emirate this year grew significantly, thanks to the efforts of Dubai Electricity and Water Authority (Dewa) under the Shams Dubai solar initiative.
Most of the installations were by businesses and government buildings, with limited adoption by homeowners.
Bureaucratic red tape and delays in connection have been the biggest hurdles to the adoption of solar energy systems, as well as the reluctance of tenants to spend on their rental properties.
For instance, Oryx Solar installed a solar energy system at a house in Victory Heights in May, but it has yet to be registered under Shams because of red tape.
“Since implementation of the Shams programme, we have received many inquiries about residential systems, but clients always cancel when there is uncertainty about the connection time,” said Hennie Schoeman, a project manager at Oryx Solar.
“This is why most contractors are staying away from residential work. The connection processes and procedures are just not up to scratch yet.” Mr Schoeman said simplifying the registration process for homeowners could be a solution. Currently, the registration procedures are the same for residential and industrial systems.
Vinod Anthraper, a sales and marketing manager at Value Addition, an engineering firm in Sharjah, agreed with Mr Schoeman. This year, Value Addition had to cancel and refund an order for a residential solar energy system because the approvals process was taking too long.
Mr Anthraper said that it would take a long time to complete the approvals procedures required by private developers and Dubai Municipality.
“We are not actively pursuing household projects but if a customer wants to take it up, we will leave all the work of securing the approvals to them,” he said.
Mr Anthraper said a way to accelerate the approval process for homeowners was to create a one-stop service at Dubai Municipality. Presently, applications to instal solar energy systems can be submitted only through a consultant or civil contractor. A special government directive to developers would also simplify the process.
Karel de Winter, general manager of Alsa Solar Systems, said the transient nature of Dubai’s expatriate population also worked against the adoption of solar energy systems.
Even with falling costs, a small system with peak capacity of five kilowatts costs about Dh27,000. And given the often limited duration of expatriates’ residence in the UAE, people are reluctant to invest in such systems.
But based on the electricity rates that expatriates pay, a small system would pay for itself in about six years, said Mr de Winter.
The electricity rates for Emiratis are lower, so the financial incentive for them is smaller.
Still, financing deals such as the plans being discussed under the Green Deal crowdsourcing platform could help to provide incentives by giving homeowners easy access to attractive financing options. Dewa could also promote the benefits of solar- energy roofs when sending customers information about their electricity and water bills, Mr de Winter said. “This could make it very straightforward, very simple about what solar could do for them because all of them have the same questions,” he said.
Despite these hurdles, Shams Dubai is growing. Projects with a total peak capacity of 3.5MWp (mega watt peak) have been connected, of which Alsa Solar has installed about 1.7MWp, according to Mr de Winter.
This year, for the first time, the solar-energy business generated more revenue for Value Addition than its core business in industrial boilers. “Now every institution wants to play their role in having some renewable energy in their facility,” said Mr Anthraper.
Mr de Winter said solar-energy roofs were proving to be attractive to companies with high energy bills.
“A lot of people think that solar is still expensive but in essence it is not,” he said. “It is not rocket science, it is actually straightforward economics – on their roof, everybody has a small oil well.”
Dewa declined to comment.