As of 2023, Oman had an installed solar power capacity of approximately 500 MW.⁵

Oman has ambitious plans to expand its solar capacity to 4 GW by 2030, starting with an initial phase of 1 GW.⁶

The average cost of electricity generation in Oman varies by source:⁷

• Natural Gas $0.025 to $0.045 per kWh
• Solar $0.035 per kWh
• Wind $0.04 to $0.06 per kWh

As of the latest data, the energy mix in Oman is as follows:²⁸

• Natural Gas 93%
• Solar 6%
• Wind 1%

Urban areas in Oman receive a continuous supply of electricity, averaging 24 hours per day, while rural areas average around 22-24 hours per day.⁴

The residential solar market in Oman is growing, with several thousand installations across the country, driven by government incentives and increasing public awareness. It is estimated by PAEW, residential solar capacity is at 1.4GW.⁹¹⁰¹¹

Oman has 13 solar panel farms currently installed whereas Oman estimates to increase its solar power production by adding 16 new solar power plants to their solar power infrastructure.¹²¹³

The off-grid solar market in Oman is limited but growing, with current capacity around 10 MW and projections to reach 30 MW by 2030.²

The on-grid solar market in Oman is set to expand significantly, with current installed capacity expected to rise from 500 MW to 4 GW by 2030.¹⁴

The average salary of workers in the solar industry in Oman is as follows:¹⁵

• Electrical Engineer: $1,200 – $1,800
• Electrician: $800 – $1,200
• Design Engineering Manager: $1,500 – $2,200
• Solar Energy System Installer: $600 – $1,000
• Solar Energy / Solar Power Engineer: $1,200 – $1,800
• Solar Installation Electrician: $700 – $1,200

The population of Oman is approximately 4,500,000 as of 2024.¹⁶

The average overhead cost of solar panel production in Oman encompasses several key components:

• Raw Material Costs: The primary materials required for solar panel production include silicon, aluminum, and copper. These materials constitute a significant portion of the overall production cost due to their fluctuating market prices driven by global demand and supply dynamics.
• Utilities Charges:³²⁵ Energy costs are substantial due to the high electricity consumption needed for various manufacturing stages.
  • Electricity Charges: The cost of electricity in Oman is relatively high, which impacts the overall production cost. As of 2023, the price of electricity for households in Oman is $ 0.026/ KWh and $ 0.22 / KWh for residential and commercial respectively.
  • Water Charges: Here are the permitted tariffs for water in Oman, US Dollars (USD) per cubic meter:
    • Residential: approximately $1.71 USD / Cubic Meter
    • Additional Accounts (for residential): approximately $1.98 USD / Cubic Meter
    • Non-Residential (commercial): approximately $3.42 USD / Cubic Meter
• Labor Costs:²⁷ The average labor cost in Oman for skilled workers in the solar panel manufacturing sector ranges from $3 to $10 per hour, reflecting the specialized skills required.
  • Minimum wage for Omani workers is around $870 USD with a mandatory annual increase.
• Facility Maintenance:²⁶ Maintenance costs for manufacturing facilities, including rent, equipment maintenance, and repairs, typically range from $2,500 to $7,500 per month. Here’s a rough idea of rental costs:
  • Smaller Factories (500-1000 sqm): $5,400 – $10,800 USD per month)
  • Medium Factories (1000-2000 sqm): $10,800 – $18,900 USD per month)
  • Larger Factories (2000+ sqm): $18,900 per month
• Administrative Expenses:¹⁵ These include salaries for administrative staff, office supplies, and other general expenses, which are a substantial part of the overhead costs.

The average salary of workers in the solar industry in Oman is as follows:

• Electrical Engineer: $1,200 – $1,800
• Electrician: $800 – $1,200
• Solar Installation Electrician: $700 – $1,200

Quality Control: Ensuring that solar panels meet safety and performance standards involves testing and inspections, adding to the overhead costs.

The costs can vary significantly based on several factors such as:

• Location: This includes variables like labor costs and energy prices, which can differ widely from one region to another.
• Scale of Production: Larger-scale production often benefits from economies of scale, potentially reducing per-unit costs.
• Level of Automation: Higher levels of automation can lead to greater efficiency and lower labor costs, but may require higher initial investments.
• Type of Solar Panels Produced: Different types of solar panels (e.g., monocrystalline, polycrystalline, thin-film) have varying production costs due to differences in materials and manufacturing processes.

These factors collectively contribute to the overhead costs.

Oman is continuously improving its energy infrastructure here are some significant measures:¹⁸²⁴¹⁷

• Oman’s energy landscape is currently undergoing a transformation, with a strong emphasis on sustainability.
• Oman has committed to net-zero emissions by 2050, State-owned Petroleum Development Oman (PDO) aims to slash its emissions to 50% of 2019 levels by 2030.
• A significant milestone in this transformation is the establishment of the Ibri II solar plant, which has a capacity of 500 MW.
• Oman has embarked on several other projects in line with targets for 2030, including a wind farm in Dhofar, a solar IPP in Manah, 11 solar-diesel hybrid facilities, and the Sahim (Contribute) initiative to install small-scale solar panels on residential and commercial buildings.
• Looking towards the future, Oman has set an ambitious goal to source 30% of its energy from renewable sources by 2030.
• Solar energy is expected to play a key role in achieving this goal, contributing an estimated 21% to the total energy mix.
• Efforts are currently underway to enhance the reliability and stability of the grid.
• These efforts underscore Oman’s commitment to the development of sustainable energy.

Oman has regulations in place to support solar energy adoption, including: The Authority for Public Services Regulation is responsible for regulating the electricity sector, including the use of solar photovoltaic (PV) systems.¹⁹

• The Renewable Energy Initiative, also known as the Sahim Initiative, promotes the use of clean solar energy. This initiative encourages the installation of solar panels in residential units to generate electricity.
• The Authority for Electricity Regulation has completed the final draft of the Standards for small scale Grid-Connected Solar PV Systems. These standards define the requirements for solar PV generating plants intending to operate in parallel with the distribution networks.
• Ahead of the planned roll-out of a regulatory framework for small-scale, grid-connected solar photovoltaic systems, the Authority for Electricity Regulation Oman (AER) has initiated a phase of public consultation. This is aimed at garnering general feedback on proposed regulation underpinning this landmark initiative.

Here’s a concise summary of Oman’s Solar Initiatives:²⁰²⁴

• Oman has committed to achieving net-zero emissions by 2050.
• The government is expanding its electricity-generation capacities through renewable independent power projects (IPP), with plans to derive at least 30% of electricity from renewables by 2030.
• Oman’s integrated oil and gas company OQ is seeking international partners to replace 40% of its three-gigawatt power consumption with renewable energy projects.
• Commercial operations of Oman’s largest utility-scale solar photovoltaic, independent power project, Ibri 2, started in January 2022.
• Oman has embarked on several other projects in line with targets for 2030, including a wind farm in Dhofar, a solar IPP in Manah, 11 solar-diesel hybrid facilities, and the Sahim (Contribute) initiative to install small-scale solar panels on residential and commercial buildings.
• Oman has also set up a new government entity, the Oman Sustainability Centre, to oversee its carbon neutrality plans.
• It launched an electricity spot market in 2022.

These efforts underscore Oman’s commitment to transitioning to renewable energy sources.

²³

Ibri II Solar Power Plant

• Location: Ibri, Ad Dhahirah Governorate
• Capacity: 500 MW

Amin Solar PV Project

• Location: Near Nimr, Dhofar region
• Capacity: 100 MW

Several large-scale solar projects are planned, including:

Sohar Solar Power Plant

• Location: Sohar, Al Batinah North Governorate
• Capacity: 1 GW (planned)

Misfah Solar PV Plant

• Location: Misfah, Muscat Governorate
• Capacity: 100 MW (planned)

²¹²²²³

Several key players in Oman’s solar market include:

• Wadi Noor Solar Power Company (WNSPC): A joint venture between EDF Renewables Middle East and Korea Western Power Co Ltd (KOWEPO), WNSPC is dedicated to advancing solar innovation and driving economic growth in Oman. They specialize in photovoltaic solutions and operate cutting-edge PV solar plants.
• Bahwan Solar: Part of the Bahwan Engineering Company, Bahwan Solar has been a pioneer in solar energy initiatives in Oman. They have developed Oman’s first and only PV Solar Plant feeding power to a public grid and offer comprehensive solar energy infrastructure solutions.
• Oryx Solar Power: Oryx Power specializes in the development of renewable energy projects, including solar photovoltaic and wind, from the initial Greenfield phase to commercial operation. They have a multidisciplinary team with extensive experience in technical, economic, legal, and environmental aspects of renewable energy projects.
• Nafath Renewable Energy: Established in 2013, Nafath Renewable Energy is one of Oman’s oldest players in the small-scale solar PV and sustainable energy sector. They have recently signed a MoU to support the deployment of renewable energy storage, particularly in rural parts of Oman.
• Majan Electricity Company: Majan Electricity Company distributes and supplies electricity in Oman. They offer various services including bill payment, meter reading, tariff changes, and more. The company was founded in May 2005 and is headquartered in Sohar, Al Batinah North Governorate, Oman.