Saudi electricity authority governor clarifies cost of solar power for homes

Logo of Water and Electricity Regulatory Authority

Abdulrahman Al-Ibrahim, governor of the Water and Electricity Regulatory Authority, said that the cost of solar photovoltaic (PV) system for homes ranges from a minimum of SAR 80,000 to SAR 200,000.

In an interview with Saudi TV, Al-Ibrahim said that this is related to a duplex apartment, spanning an area of 200 square meters (sqm) to 250 sqm, and a medium-sized villa, over an area of 400-1,000 sqm.

He explained that every 7 sqm area produces 1 kilowatt-hour (kWh) of energy.

The system was created to serve the consumer. Meanwhile, the authority asked the company to pass this energy and sell it to the public grid, to benefit from consumer surplus.

Al-Ibrahim indicated that the system meets part of the electricity consumption, as it reduces the electricity bill.

He also pointed out that the authority will protect consumer rights and maintain their needs, including receiving consumer complaints about the service provider and defending the cause, adding that there is a control process now not only on the licensee but also concerning the performance of the regulator.

Over 17 local companies have qualified to apply for the “Shamsi” portal, where all the devices provided by these companies must be approved by the Saudi Standards, Metrology and Quality Organization (SASO), the governor said, adding that six entities are coordinating with each other to organize this process.

For connecting smart meters via satellite, Al-Ibrahim said the link will take place in the middle of this year, and the process is expected to be completed by the end of September.

About 10 million smart meters have been installed for all sectors (residential, commercial and other). These meters are meant to provide the service accurately to the consumer, so that there is no discrepancy in measuring consumption.

Additionally, it will facilitate a real-time and cumulative application of consumption through which the consumer will know at any time the consumption volume, and set a cap on it, which will address and reduce consumer complaints in the future.

Smart meters will transfer data in detail from the main consumer center, in addition to serving the consumer in isolated areas, Al-Ibrahim added.

In February, the Ministry of Energy announced that small-scale solar PV systems are ready to produce electricity for consumer houses and enterprises, to be later connected to the Kingdom’s grid, according to data available in Argaam.