Are you thinking about installing solar panels on your home in the UAE? You’re not alone. Many homeowners are asking the same question: Do solar panels increase home value?
It’s a good thing to consider. After all, solar panels aren’t cheap. You want to know if you’ll recoup your investment through savings or a higher resale price.
Let’s walk through the answers together. We’ll keep it simple and easy to follow.
- Solar is catching on in the UAE
- Can solar panels increase your property’s value?
- Costs and ROI
- Barriers to boosting home value with solar
- Comparison with international markets
- What could change in the future?
- Key takeaways
- FAQs
Solar is catching on in the UAE
Solar energy is growing fast in the UAE. As of 2024, the UAE had around 7.9 gigawatts of solar power installed—the most in the Middle East. That’s a huge step! And the country isn’t stopping there. By 2050, the UAE plans to generate 25% of its electricity from solar sources and achieve 44 gigawatts of solar power capacity.
In Dubai, the Shams Dubai programme facilitates the installation of solar panels for homeowners. It connects private homes to the grid, enabling them to generate and utilise their own clean electricity.
In Abu Dhabi, the Estidama Pearl Rating System promotes sustainable building practices. Villas and new developments are rewarded for incorporating energy-efficient features, such as solar panels.
Dubai’s Mohammed bin Rashid Al Maktoum Solar Park is also a significant development. It’s the largest solar park in the world, producing nearly 4,000 megawatts (MW).
The UAE also ranks 10th globally in terms of solar power per person. That means a lot of solar energy for each resident compared to other countries. These stats show that solar energy is no longer just a trend. It’s becoming a solid part of the UAE’s future. More people are ready to try solar—including homeowners like you.
Can solar panels increase your property’s value?
The short answer is: not much right now.
Solar panels reduce your monthly electricity bills—sometimes by as much as 50–60%. That’s a huge help, especially in the summer months. However, when it comes to resale value, most buyers in the UAE still focus on location, layout, and interior finishes. They’d rather pay more for a lovely kitchen or renovated bathroom than for solar panels.
That said, this is starting to change. More UAE property buyers are asking about sustainability and energy-saving features. Some developers are beginning to include solar systems in new communities. So while the impact is small now, it may grow in the future.
Costs and ROI
Yes, solar energy still makes sense, even if it doesn’t immediately boost your sale price.
Here’s why:
- A 5kW solar system in the UAE costs between AED 20,000 and AED 30,000.
- You can save Dh4,000 to Dh6,000 per 1kW over time.
- Most systems pay for themselves in 5 to 8 years.
After that, your electricity is basically free for the life of the system.
Many homeowners see a 2–3x return on their investment over 25–30 years. That’s pretty solid. Even better? Your savings begin from the day your system is turned on. So, even if solar doesn’t increase your home’s value today, it can still reduce your monthly expenses, month after month.
Explore all about the ROI of real estate in Dubai.
Barriers to boosting home value with solar
If solar saves so much, why aren’t more people installing it? There are a few key reasons:
1. Low awareness
Many buyers don’t fully understand how solar works or how much it saves, so they don’t ask for it and are not ready to pay more for it.
2. Investor-focused market
Investors own many homes in the UAE. They rent them out, so tenants pay the utility bills, not the owners. This gives owners little reason to invest in solar.
3. Short-term rentals
Tenants often move every year or two. That’s not long enough to reap the benefits of long-term energy savings.
4. Approval process
Installing solar panels in Dubai requires participating in DEWA’s Shams Dubai programme and using licensed contractors. It’s doable, but it takes time and paperwork.
Comparison with international markets
Let’s compare the UAE to other places.
| Region | Home value boost | Why it happens |
| UAE | Small | Buyers focus on savings, not resale value |
| USA | 5-10% | Buyers are used to solar and value it |
| Europe | 4–8%+ | Strong green rules and eco-aware buyers |
In countries like the US, solar panels can help homes sell faster and for a higher price. In green cities across Europe, buyers expect solar or similar features. We’re not quite there yet in the UAE, but change is underway.
What could change in the future?
So, will the answer to ‘do solar panels increase home value’ change in the UAE? Yes, it likely will. Here’s what could push that change:
- Higher electricity prices will make solar savings more attractive.
- Government rules could require more sustainable homes.
- Buyers will get more familiar with green features.
- Tenants may prefer solar-equipped rentals to save money.
- Developers such as Emaar and Aldar are already incorporating solar-ready homes into their new projects.
The more people understand how solar energy helps, the more likely they are to pay extra for it.
Key takeaways
Solar panels in the UAE are an excellent investment for saving money, particularly in villas. They don’t yet significantly boost resale value, but that could change.
You’ll usually break even in 5–8 years and enjoy significant savings afterwards. Currently, the primary benefit is lowering your monthly bills, rather than increasing your home’s value. However, with rising energy costs and increasing environmental awareness, solar homes may soon become more valuable to buyers and renters alike.
FAQs
Not much is happening right now due to limited buyer awareness, but they do help cut electricity bills.
You’ll usually break even in 5 to 8 years, then keep saving.
About AED 20,000–30,000 for a typical 5kW system.
Yes, especially to renters who want lower bills.
Increased buyer awareness, rising energy costs, and stricter green building regulations.
