Saudi Arabia issues new rules for self-consumption renewable energy

The Saudi Electricity Regulatory Authority has issued the 'Self-Consumption Renewable Energy Regulation,' published in Umm Al-Qura newspaper on Friday, which governs how consumers can generate electricity from renewable sources for their own use, with the option to export surplus power to the grid in exchange for a financial credit deducted from their bills.

The regulation applies to all consumption categories, including residential, and covers solar power systems of all types, wind energy, waste-to-energy, and biofuel, with capacities ranging from 1 kilowatt up to 50 megawatts. Generation and consumption must take place within the same facility.

The regulation divides systems into four categories based on capacity: the first from 1 to 11 kilowatts, the second up to 50 kilowatts, the third up to 2 megawatts, and the fourth up to 50 megawatts.

Systems in the first category, suitable for homes, do not require prior approval—only a notification must be registered with the service provider. The second category requires a qualified contractor and a feasibility study. The third adds a network impact assessment, while the fourth requires a study permit and a generation license from the authority.

The regulation stipulates that the consumer must own the facility or have a legal right of use that allows installation. The capacity of grid-connected systems must not exceed the facility's contracted load, and integrated battery storage systems are permitted.

A mandatory 'net billing' system has been adopted, with bi-directional meters installed at the service provider's expense. Surplus exported energy is credited financially and carried over to the next bill. Credits can be used across multiple accounts belonging to the same consumer and are valid for 12 months from the date of accrual. The service provider must pay any outstanding balance within 60 days of contract termination.

Application and connection fees are set at 2,300 riyals (SAR) for the second category, 16,500 riyals for the third, and 35,000 riyals for fourth-category systems up to 4 megawatts.

The regulation requires service providers to process connection requests in order of submission and without discrimination via an electronic platform, publish available network capacity, lists of qualified contractors and approved equipment, and respond to complaints within seven days. Consumers have the right to escalate unresolved complaints to the authority.