Solar subscription or buy? Check the real numbers
Subscription offers often show savings before their own fee and VAT, and sometimes assume less power use than you really have. Put in your numbers and see what is left each year.
Worked out month by month: summer use hits the higher price slabs, and in Dubai spare winter solar is credited and used later. Assumes 1,550 kWh a year per kWp, 5% VAT, admin fee of one month, and the utility's one-off solar charge. A guide, not advice.
Your subscription, per year
-off your electricity bill
-subscription fees with VAT
-
| Stress test, per year | Subscribe | Buy |
|---|
| Running total | Subscribe | Buy |
|---|
An example: 10 kWp on a Dubai villa
A villa using 4,500 kWh a month on average, with a 10 kWp system and a AED 450 monthly fee:
| Saving on the electricity bill | about AED 5,883 a year |
| Subscription fees with 5% VAT | AED 5,670 a year |
| Left for you | about AED 213 a year |
| One-off at the start | AED 1,168 (admin fee and utility solar charge) |
| Buying instead at AED 35,000 | payback in about 8 years |
The point: a subscription that "saves AED 500 a month" may leave you only a few dirhams once its own fee and VAT are counted. It works best on homes with high summer bills, where solar replaces power billed at the top slabs.
Seven things to check in any solar offer
- Usage: does the proposal use your real yearly kWh from 12 months of bills? Lower assumed use makes the system look like it covers more of your home.
- Savings after fees: are savings shown before or after the subscription fee and VAT?
- "Up to" savings: savings valued at the top price slab all year overstate winter months.
- Fee changes: is the monthly fee fixed in writing, or can it rise each year?
- Buyout: what does it cost to buy the system in year 1, 3 and 5?
- Output guarantee: is the yearly kWh guaranteed, or only "estimated"?
- One-off costs: utility solar charge, roof ladder, meter replacement, community NOC, and for tenants a landlord NOC and security cheque.
Common questions
Is a solar subscription worth it in Dubai?
It can be, but the margin is often thin. In our example, a 10 kWp system on a villa using 4,500 kWh a month saves about AED 5,883 a year on the bill, while a AED 450 monthly fee plus VAT costs AED 5,670. That leaves about AED 213 a year. Bigger homes with high summer bills do better.
Who do I pay with a solar subscription?
You pay the solar company a monthly fee, usually plus 5% VAT, and often one month's fee as an admin or setup fee. You keep paying your electricity bill too, but it is lower. The utility may also add a one-off solar connection charge to your bill.
What one-off costs come with rooftop solar in Dubai?
Expect a one-off utility solar charge on your electricity account (installer proposals show about AED 695 under 10 kWp and AED 1,520 above), plus possibly a fixed roof ladder, a meter replacement, and community NOC fees. Tenants may be asked for a landlord NOC and a security cheque.
Is buying solar better than subscribing?
If you have the cash and plan to stay 7 years or more, buying usually wins, because you keep all the savings. A subscription suits people who want no upfront cost and maintenance included, as long as the monthly saving clearly beats the fee.
What should I check in a solar subscription offer?
Check that the yearly usage in the proposal matches your real bills, that savings are shown after the fee and VAT, whether the fee can rise, the buyout price over time, any output guarantee, cancellation terms, and every one-off charge.