UAE Adds 1 GW Solar Capacity In 2025, Reaches 6.7 GW And Eyes Over 30 GW By 2035

The United Arab Emirates (UAE) continued to strengthen its position as a leading renewable energy market by adding around 1 gigawatt (GW) of solar power capacity during 2025. According to an analysis by GlobalData, the country’s total installed solar capacity increased from 5.7 GW at the end of 2024 to approximately 6.7 GW by the close of 2025. This growth reflects the UAE’s ongoing commitment to expanding clean energy generation and reducing its dependence on conventional fossil fuels.

The pace of solar development is expected to increase significantly in the coming years. GlobalData forecasts that the UAE will install an additional 2.4 GW of solar capacity in 2026, raising the country’s cumulative solar capacity to about 9.4 GW. Over the longer term, the solar sector is projected to grow at a compound annual growth rate of more than 17% through 2035. Based on current projections, the UAE is expected to achieve 20 GW of installed solar capacity by 2030 and exceed 30 GW by 2035.

Solar power generation is also expected to rise sharply alongside capacity additions. Electricity produced from solar energy is forecast to increase from 15.8 terawatt-hours (TWh) in 2025 to 75.4 TWh by 2035. This substantial growth highlights the increasing role of solar energy in meeting the country’s future electricity demand.

Several factors are supporting the rapid expansion of the UAE’s solar market. The country benefits from strong government policies, abundant land resources suitable for large-scale solar projects, and steadily rising electricity consumption. The market also remains highly competitive, with Chinese manufacturers supplying affordable solar equipment, European developers participating in project development, and state-backed Emirati utilities managing procurement and power purchase agreements.

Large utility-scale solar projects continue to drive most of the growth. Key projects include the 3.8 GW Mohammed bin Rashid Al Maktoum Solar Park and the 2 GW Al Dhafra Solar Project. The UAE’s Independent Water and Power Producer model, supported by long-term power purchase agreements, has helped attract investment and secure some of the lowest solar electricity tariffs globally.

At the same time, commercial and industrial consumers are increasingly adopting rooftop and carport solar systems to reduce electricity costs. The residential sector is also gradually expanding through supportive measures such as Dubai’s Shams Dubai net-metering program and self-consumption initiatives introduced in Abu Dhabi.

To support the growing share of renewable energy, the UAE is investing in battery storage and grid flexibility. Battery storage capacity reached 518 megawatts in 2025 and is expected to grow to 1.1 GW by 2030. Combined with flexible gas-fired generation and nuclear power, these investments will help maintain grid reliability as solar energy becomes a larger part of the country’s electricity mix.