Oman’s Small and Mid-Scale Solar PV Surge Poised to Hit 130 MW by 2025 Amid Strong Push for Renewable Energy Under Vision 2040

The Sultanate of Oman is witnessing a robust surge in small and medium-sized solar photovoltaic (PV) investments, with total generation capacity projected to climb to approximately 130 MW by the end of 2025, up from 92.5 MW at the close of 2024.

The figures were revealed in the 2024 Annual Report of Nama Electricity Distribution Company (NEDC), the national distribution utility that oversees electricity supply across most of Oman, excluding the Dhofar Governorate.

According to the report, over 400 new applications for solar PV connections were received in 2024 alone, expanding the existing customer base, which stood at 856 installations by the end of last year.

Advancing Oman Vision 2040

This surge aligns with Oman Vision 2040, which targets over 20% renewable energy penetration in the national consumption mix by 2040. NEDC, a key subsidiary of the Nama Group, has been tasked with spearheading grid-connected solar PV projects, particularly in the small- and mid-scale segment.

“NEDC plays a crucial role in this transition,” the utility stated, noting its dedicated solar PV unit monitors compliance with technical and regulatory requirements issued by the Authority of Public Services Regulatory (APSR). Each solar installation undergoes three critical stages: Initial Enquiry, Design Approval, and Commissioning.

Sector-Wise Breakdown of Solar Installations

Of the 856 total customers utilizing grid-connected solar PV systems:

476 residential customers contribute a combined 5.948 MW.

178 commercial customers account for 60.262 MW – nearly two-thirds of the installed capacity.

119 government entities generate 20.815 MW.

83 agricultural users contribute another 5.475 MW.

This breakdown highlights the growing interest from the commercial and public sectors, which are playing a dominant role in capacity expansion.

Economic, Environmental, and Social Impacts

Beyond its environmental advantages—such as carbon emissions reduction and improved air quality—solar PV adoption is also creating job opportunities, encouraging local content development, and improving technical competencies within the Omani energy sector.

“Solar energy implementation is not just a technical transition but also a social and economic opportunity,” the NEDC report emphasized. “We are committed to promoting renewable energy adoption and contributing to Oman’s national development goals.”

New Business Models Emerging

The rise in demand for rooftop and ground-mounted solar systems has led to the growth of local contractor ecosystems.

Large commercial consumers are increasingly adopting the Build-Own-Operate (BOO) model, wherein private contractors finance, install, and operate the solar systems, supplying electricity under long-term contracts.

Additionally, subscription-based models, such as Solar as a Service (SaaS), are gaining popularity. In this model, customers pay a fixed or performance-based monthly fee for solar access, while ownership and maintenance responsibilities remain with the service provider.