Gulf cities turn to rooftop solar to accelerate decarbonisation and boost property profits

A recent study by the global real estate adviser Knight Frank, which was carried out with researchers from the University of Leeds and the University of Bristol, suggests that rooftop solar in Gulf cities could play a crucial role in achieving the region’s decarbonisation goals. Plus, it might offer attractive financial returns for property owners too.

The report, titled Going Green: Rooftop Solar Potential in the GCC, highlights that advanced geospatial modelling shows significant portions of urban rooftops are technically suitable for solar panel installation. In fact, the analysis points out that Riyadh has around 158.2 square kilometers of viable rooftop space, while Abu Dhabi has about 42.8 square kilometers. The study indicates that installing solar panels on large enough roofs in Riyadh could generate roughly 17,500 GWh per year, more than 40% of the city’s power use in 2023, which is quite impressive.

Faisal Durrani, the MENA research lead at Knight Frank, mentioned that urban infrastructure accounts for about 39% of global carbon emissions. That’s a pretty big chunk, making rooftops a key part of future energy planning, no doubt. The report explains how rooftop systems can ease stress on power grids, cut transmission losses, and deliver renewable energy right at the point where it’s needed most.

The findings tie into a broader regional shift. The Gulf has traditionally relied on enormous desert-scale solar parks to produce cheap power. Projects like Saudi Arabia’s Sakaka, Sudair, and Al Shuaibah have set low tariffs and established the country as a major player in utility-scale solar. But now, Knight Frank suggests we’re seeing a transition towards a more distributed approach, where city rooftops, logistics hubs, and commercial centers are converted into energy generators.

“Rooftop solar is starting to be seen as a main part of future energy plans, rather than just a backup or secondary option,” Durrani explained in a statement that accompanied the report.

When it comes to economics, scale really does matter. The report points out that smaller rooftop systems tend to be more expensive per kilowatt-hour. For example, in Abu Dhabi, installations under 100 square meters could cost around 30 fils per kWh. But larger setups, those over 1,100 sqm, can reduce that cost by nearly 60%, making big commercial rooftops competitive with remote solar farms. The analysis estimates large commercial rooftops in Abu Dhabi could produce power at about 8 fils per kWh, compared to roughly 6 fils for desert-based solar.

Wesley Thomson, Partner and Head of ESG at Knight Frank for MENA, shared that the payback period for solar in Riyadh is roughly seven to eleven years, with larger commercial systems generally performing better. He referenced the Shamsi Solar Calculator as a tool used for those calculations. The firm’s broader modelling of rooftop PV potential in other markets also shows that, once you account for on-site use and optimal sizing, there’s clear potential for solid annual returns.

Thinking about policy and market factors, the report notes that both Saudi Arabia and the UAE have set ambitious targets. Saudi Arabia aims for net-zero emissions by 2060, with 50% renewable energy by 2030. Meanwhile, the UAE’s goal is to reach 50% clean energy by 2050, along with a 70% reduction in emissions, supported by large projects like the Mohammed bin Rashid Al Maktoum Solar Park. Still, the report points out that rooftop solar in the UAE makes up less than 1% of total capacity at present.

Official figures and industry data suggest that the UAE leads the region with about 869 green-rated buildings, an indicator that the country is making strides in certified sustainable construction. Knight Frank argues that accelerating green building adoption is crucial if companies are serious about hitting their net-zero commitments. The firm’s Saudi Report 2025, among other publications, highlights rising investor interest in ESG-aligned real estate, especially in industrial and logistics sectors where large, flat roofs are common.

Beyond cutting carbon emissions, rooftop solar offers practical benefits. Dr. Christopher Payne, who specializes in strategy, economics, and geospatial analysis for Knight Frank, emphasized that rooftops are “located exactly where the energy consumption happens,” which enhances city resilience and helps reduce reliance on the grid. The idea is that rooftop PV could also attract long-term institutional capital, looking for steady, inflation-linked income that supports municipal sustainability goals.

Of course, despite the promising potential and improving economics, adoption isn’t happening everywhere equally. The report, along with industry commentary, points out several obstacles: fragmented property ownership, complicated permitting and grid connection processes, tariff and net-metering rules, and the high upfront costs for substantial systems.

Knight Frank suggests targeted policy measures could help unlock this potential, things like simplifying permits, offering incentives or low-interest financing for larger installations, standardizing measurement and verification, and revising tariff structures to better value distributed generation. The report emphasizes that opportunity corridors, including retail complexes, logistics parks, and government properties, where ownership is consolidated or more straightforward, could streamline deployment.

Specifically for the UAE, the study suggests that large-scale rooftop PV deployment would complement existing utility projects. It could be integrated with new demand-side programs and green building initiatives. Interestingly enough, high-net-worth individuals in the Gulf increasingly value eco-friendly features like rooftop solar and smart energy controls, which might boost private-sector uptake, especially in premium and commercial real estate.

The authors also point out that rooftop solar shouldn’t be considered in isolation. Combining rooftop PV with on-site energy storage, demand response, and energy efficiency upgrades can boost self-consumption and improve project economics. Some academic research into building-integrated photovoltaics (BIPV), like façade-mounted panels or semi-vertical systems, also hints at untapped opportunities that could increase yields downtown.

As Gulf cities grow and electrification spreads, Knight Frank’s report concludes that distributed rooftop solar provides a quick, scalable resource. Fully embracing rooftop PV could help meet net-zero commitments, improve the resilience of urban energy systems, and open new pathways for real estate investment in the region.

For policymakers and market stakeholders in the UAE, the clear challenge is turning this technical potential into actual projects, by aligning financing, regulations, and property-owner incentives so that rooftops evolve from passive spaces into active, productive parts of a decarbonized city grid.

Source: Noah Wire Services