Yemen has an installed solar power capacity of approximately 290 MW. ⁵

By 2030, Yemen aims to achieve a total solar PV capacity of 400 MW, with 250 MW coming from off-grid systems. ⁶

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Solar: The average levelized cost of generating electricity from solar plant in Yemen $0.073 USD/kilowatt-hour (kWh)

Diesel: The Government of Yemen currently pays $0.25 USD/kWh for diesel-based purchased energy from private producers

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Fossil Fuels: 83 %

Solar: 17 %

The exact figure for the average daily availability of electricity from the national grid in Yemen is not available. In 2020, it was reported that rural areas in Yemen experienced load-shedding and blackouts, while the blackout time in cities increased to 20 hours a day. Some cities even faced complete blackouts. ⁴

The exact number of residential solar panel installations in Yemen is not readily available. However, the adoption of solar energy has been increasing due to the country’s energy crisis and frequent power outages. Many households have turned to solar panels as a reliable and sustainable source of electricity. ³

From publicly available records, it seems like there are around 9 installed and projected solar farms in Yemen. ⁸

The off-grid market demand for solar panels in Yemen is substantial, driven by the need for reliable electricity in rural and part of urban areas. Recent reports indicate that solar PV systems have reached 50% of rural households and 75% of urban households. This demand is mainly due to the unstable grid infrastructure and the need for alternative energy sources. ⁹

Current Demand: As of 2023, the installed capacity for on-grid solar PV in Yemen is approximately 290 MW. ³

Projected Demand: The on-grid solar PV market in Yemen is projected to continue its growth, with an expected  150 MW to be installed by 2030. ⁵

The average monthly salary of a solar industry worker is not readily available. However, The gross salary range for individuals working in Yemen is approximately around $285 USD, while the average monthly minimum wage is $ 84.88 USD. ¹⁰

As of 2025, Yemen’s population is estimated to be around 41.77 million people. ¹¹

Labor costs ¹⁰: The average monthly salary in Yemen is around $285 USD, while the average monthly minimum wage is $ 84.88 USD.

Utilities

• Industrial Electricity Prices : Approximately $0.12 USD per kilowatt-hour. ¹²
• Utilities (including water, gas, heating, cooling, and electricity) can cost around $ 86.28 USD per month for a 85m² apartment. ¹³

Rent: The cost of renting a warehouse in Yemen can vary depending on the location and size of the warehouse, urban areas or near major transportation hubs tend to be more expensive.

Facility Maintenance costs: for manufacturing facilities in Yemen can vary based on several factors, including the size of the facility, the type of equipment used, and the specific maintenance practices in place.

Administrative Expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

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• Electricity Generation: Electricity generation in Yemen has been on the rise since the start of the millennium. In 2021, Yemen generated 3.52 Terawatt hours (TWh) of electricity, marking an 8.64% increase compared to the previous year. Of the total electricity generated that year, 54.26% came from other fossil sources. Since 2000, Yemen’s electricity production has increased by 9.66%, with a growth of 0.28 TWh in 2021 compared to the previous year. In 2021, Yemen contributed 0.012654646430257% to the world’s total energy generation. The country’s total installed generation capacity is 290 MW. This includes Fossil fuels (83%), Solar (17%).
• Electricity demand: Over the years, significant shifts in electricity demand have been observed due to factors such as population growth, urbanization, and technological advancements. In 2021, Yemen’s electricity demand increased by 8.64%, reaching a total of 3.52 Terawatt hours (TWh) of electricity. This represented a growth of 0.28 TWh compared to the previous year. Since 2000, Yemen’s electricity demand has increased by 9.66%.Since the start of the millennium, Yemen has decreased its imports of electricity due to increasingly stable domestic markets. In 2021, the region was a net exporter of electricity.
• Electricity demand per capita: In 2021, the electricity demand per capita in Yemen was 0.11 MW, reflecting a 10.0% increase compared to the previous year. This translates to a growth of 0.01 MW per person in 2021. However, since 2000, Yemen’s demand for electricity per person has decreased by 35.29%.
• Access to Electricity: Access to electricity in Yemen is limited, with only about 40% of the population connected to the grid. Rural areas are particularly affected, often relying on backup generators for power. The ongoing conflict and economic instability have severely impacted the country’s energy infrastructure, leading to frequent power outages and limited access to electricity.
• Primary Power Utility: The primary power utility in Yemen is the Yemen Public Electricity Corporation (YPEC). YPEC is a semi-independent arm of the Yemen Ministry of Electricity and Energy (YMEE). It is responsible for the generation, transmission, and distribution of electricity across the country. YPEC oversees several major power plants, including the Ma’rib gas station, Alhuso gas station in Aden, Mokha gas station in Taiz, and Alkaseb gas station in Hodeida

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Environmental Regulations: Companies must adhere to environmental standards to minimize pollution and ensure sustainable manufacturing processes. This includes proper waste management and adherence to emission standards.

Quality Standards: Solar panels must meet specific quality standards to ensure efficiency and durability. Solar panels in Yemen are required to meet high efficiency standards, with some achieving over 23% efficiency through advanced technologies like N-type and TopCon. They must be durable enough to withstand harsh environmental conditions, such as high temperatures, strong winds, and dust, with low annual degradation rates around 0.4%. Panels should have a low temperature coefficient to ensure their performance is maintained in high temperatures, similar to the Tiger Neo panels, which have a coefficient of 0.29%/°C. They must also perform well in low light conditions, generate electricity during cloud cover, and come with comprehensive warranties, including a high performance warranty period of 30 years and a 12-year warranty against manufacturing defects. Safety is crucial, requiring adherence to regulations to prevent hazards, such as proper insulation, grounding, and the use of fire-resistant materials.

Import and Export Regulations: Companies must follow regulations related to the import and export of raw materials and finished products. This includes obtaining necessary permits and paying applicable duties.

Labor Laws: Compliance with labor laws is essential, including fair wages, safe working conditions, and adherence to labor rights.

Financial Reporting: Companies are required to prepare and submit financial statements, including balance sheets, income statements, and cash flow statements, to ensure transparency and accountability.

Health and Safety Regulations: Ensuring the health and safety of workers is crucial. Companies must implement safety protocols and provide necessary training to employees.

Renewable Energy Policies: Companies must align with national renewable energy policies and initiatives, which may include specific targets for solar energy production and usage.

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Tax Incentives: Yemen offers tax exemptions and reductions for companies investing in renewable energy projects, including solar manufacturing. These incentives can include reduced income tax rates and exemptions on certain import duties for solar equipment.

Subsidies: The government provides direct financial support to help cover costs associated with solar manufacturing. This can include grants, low-interest loans, and direct payments aimed at reducing operating costs.

Duty Waivers: Solar developers can benefit from duty waivers for importing or procuring materials from foreign countries.

Tax Waivers: Manufacturers of raw materials for solar products, such as modules and off-grid appliances, can enjoy tax waivers.

Credit Facilitation: Financial institutions offer credit facilitation for solar energy projects, making it easier for companies to access funding.

Accelerated Depreciation: Industrial and commercial users of solar power can benefit from accelerated depreciation, allowing them to deduct the cost of solar equipment more quickly.

Installed Projects 

Aden Solar Farm: ²²

• Location: Aden, Yemen.
• Capacity: 120 MW
• Status: Operating
• Details: commissioned in 2024

Al-Hussein solar power plant: ²³

• Location: Hodeidah, Al Hudaydah, Yemen
• Capacity: 10 MW for each phase
• Status: Operating
• Details: This solar plant consists of four phases, each with a 10 MW capacity. Phases 1 and 2 have been operational since 2023, while phases 3 and 4 commenced operations in 2024.

Projected Projects

FulkMukalla Yemen solar farm: ²⁴

• Location: Hadramout, Yemen.
• Capacity: 20 MW
• Status:  Pre-construction.

Yemen solar farm: ²⁵

• Location: Shabwah Governorate, Yemen.
• Capacity: Each of the first three phases will have 20 MW installed, while the fourth phase will have 10 MW installed.
• Status:  Pre-construction

Kitbah solar farm: ²⁶

• Location: Yemen
• Capacity: 20 MW
• Details: pre-construction

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• Yemen Solar: ²⁸ A prominent solar energy company in Yemen. They specialize in providing a wide range of solar energy solutions for residential, commercial, and industrial applications. Their services include the design, installation, and maintenance of solar power systems, aiming to promote the use of renewable energy sources in the country.
• Al-Aidaroos Solar: based in Aden, Yemen, has been a key player in solar energy since its establishment in 2009. The company specializes in designing, consulting, fabricating, installing, and retailing solar and renewable energy systems. They are known for their high-quality products and skilled team. Al-Aidaroos Solar is an authorized dealer and master distributor for several international brands, including Trojan batteries, Philadelphia Solar Panels, SIL, Enertech electronics, Hybrid systems, and Rotomag motors & controls. They are committed to promoting clean energy solutions and educating society about the benefits of renewable energy.
• Alnasr Solar: established in 2018, is a leading Yemeni company specializing in solar and electrical energy solutions. They offer a range of services, including solar panel installation, energy storage systems, and electrical systems, catering to both small and large-scale projects. As authorized agents for brands like Jinko Solar, Deye Inverter, BYD, and Top Cable, they provide high-quality and efficient products with superior warranties. Their commitment to customer satisfaction includes comprehensive after-sales services.
• Garallah Corp for Solar Energy: ²⁹ established in 2017, aims to meet the solar energy needs of Yemen’s local market and various sectors, including industrial, commercial, and agricultural. They are official distributors for renowned international brands like JA Solar, Canadian Solar, Spanish General pumps, and Growatt. The corporation is committed to maintaining quality by keeping up with global technological advancements. They provide design, studies, installation services, quality assurance, maintenance, and after-sales services for solar systems of all sizes. Their dedication to quality and competitive pricing has made them a trusted name in solar energy in Yemen.
• Al-Arabia Group is a prominent company in Yemen, specializing in solar energy solutions. They offer a range of services, including the installation of solar systems, battery storage, and maintenance. The company is dedicated to providing high-quality solar energy products and services to meet the needs of the local market.