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Investment Opportunity Arising More in the Distributed Solar Projects in the Middle East Region

Investment potential in distributed solar projects, particularly in the commercial and industrial (C&I) sector, has significantly increased in the Middle East region Energy consumption is rising, and people are becoming more aware of the advantages of renewable energy, which has attracted investors to this industry. The region's nations have recently made large investments in distributed solar projects as well as other forms of renewable energy

The development of rooftop solar installations in the Middle East is being fueled by several factors The abundance of sunshine is one of the most important since it offers a great source of renewable energy. Another factor is how much more affordable solar energy is compared to conventional fossil fuels Recent years have seen a sharp decline in the price of solar energy, increasing consumer accessibility and affordability

Governments in the Middle East are also actively supporting the expansion of the industry for distributed solar installations To promote investment in the industry, they have put in place several legislative initiatives and financial incentives, such as tax cuts, grants, and subsidies These actions are assisting in fostering an environment that is advantageous for investors, making it simpler for them to invest in this industry.

Significant investment opportunities in distributed solar projects have emerged in the Middle East region as a result of the rising demand for clean and renewable energy sources The Middle East is well-positioned to benefit from this trend thanks to friendly governmental policies and an abundance of sunny days

Smaller-scale solar systems that are often positioned closer to the end customers are referred to as distributed solar projects These initiatives are getting more and more wellliked because they can offer a cheap and simple way to build a sustainable energy source. People who want to save the most money right away choose the longest term However, those that care more about owning the assets and keeping the equipment after the lease expires will search for a shorter term and pay more in yearly leasing payments All of the company's contracts include maintenance and replacement parts, and customers receive fully operational systems after the leasing term

Although market awareness is rapidly increasing, finance still presents challenges. Financial institutions in the area are frequently accused by industry players of being uninterested in the distributed energy sub-sector and of not demonstrating a strong desire to try to understand the market This has made it nearly impossible for businesses, especially startups, to secure financing

But lending is scarce over the majority of the rest of this region It is motivated by two factors, the first of which is the banks' general lack of experience and opportunity, as well as their legitimate realization that the industry is facing new commercial hazards.

One of the difficulties that banks encounter daily is that it might take a lot of work to comprehend this new product line that they are trying to service, and there needs to be scale to justify that labor Banks typically tell us that they are not interested in looking at projects with 1 MW or 2 MW of power And to be honest, the costs associated with obtaining a $1 million or $2 million loan from the bank are too expensive

The lease's length is a further difficulty. With commercial companies, developers are entering into 15- to 20-year contracts Compared to most commercial loans, those are significantly longer, therefore the banks must rely on developers to carry out the proper credit checks and due diligence before signing contracts to establish the appropriate framework.

Many developers who are new to the industry may not be familiar with credit procedures and bankable PPA contract forms As a result, veteran developers in solar scape sympathize with many lenders who lack knowledge and who observe difficulties in particular development portfolios.

Despite the region's strong sun irradiation, distributed solar energy's prospects have long been hampered by its high upfront costs However, a novel business model that is enhancing the possibilities for solar energy may have finally cleared the air.

The cost of rooftop solar PV has already decreased significantly since 2009 because of technological advances, accelerating Middle Eastern adoption As the solar leasing model achieves increasing acceptability among the commercial and industrial parts of the energy sector, industry estimates now point to a similar trend in the uptake of distributed energy

The rooftop solar PV market will expand at a similar rate over the next five years The distributed energy sub-sector in the region has the potential to attract investments worth several billion dollars in the future The energy market will undergo a major change in the following five years As energy consumption rises, it may now be viable for those enterprises to meet the additional demand locally without experiencing significant development or expansion The addition of distributed energy to grid infrastructure will be possible through storage, demand management, or dispatch instructions And the most lucrative investment opportunity for renewables will be in this industry

The desire for solar energy has grown as a result of Egypt's power costs increasing by 20% annually and the country's rising fuel prices Businesses are becoming more aware of the need to reduce their rising overhead expenditures due to the rising cost of electricity Egypt is a pretty active market at the moment; they've had some significant changes, and undoubtedly, things are stabilizing from a macroeconomic viewpoint. By 2022 and 2035, Egypt aims to generate 20% and 42% of its electricity from renewable sources, respectively, with wind contributing 14%, hydropower 1 98%, solar PV 21 3%, wind 14%, concentrated solar power (CSP) 5 52%, and conventional energy sources 57 33%

Solar systems installed in Dubai as part of the Shams Dubai initiative, which DEWA launched in 2015, allow participants to sell any excess power produced by solar panels back to the grid, giving the rooftop industry a boost and bringing with it a wealth of investment opportunities in the distributed segment

The Middle East is a desirable market for investment in distributed solar projects because of the rising demand for clean and renewable energy, supportive governmental policies, and an abundance of solar resources Investors have a great chance to profit from this trend and help the area transition to a sustainable energy future as a result of the sector's sustained expansion. Significant investment opportunities are available in the industry of distributed solar projects in the Middle East With the rising need for energy, solar energy's rising cost competitiveness, and kind government policies, this industry is set to experience significant growth and increased investment over the next few years As a result, those looking for business prospects in the field of renewable energy especially solar can think about the Middle East as a prospective location