This policy brief explores the role of distributed generation (DG) – particularly solar photovoltaic systems enabled through net metering and net billing – as a critical, fast-deployable solution to address rising electricity demand across Arab States. The analysis highlights the significant potential of DG to strengthen energy security, reduce system pressure, and deliver socio-economic benefits, including job creation and greater opportunities for women’s participation in the energy sector. Despite this potential, the report finds that enabling regulatory frameworks remain limited in the region, with only a subset of countries having operational net metering or net billing schemes in place. 

Structural challenges, including grid constraints, institutional capacity gaps, and electricity subsidies, hinder wider adoption. Drawing on international experience, the brief outlines how policy approaches can evolve over time from net metering towards net billing and value-based compensation frameworks to better reflect system costs, benefits, and equity considerations. At a time of geo-political impacts on energy markets, positioning DG as a core power system asset in Arab countries rather than marginal add ons can bring significant benefits to people and economies.