Green Energy Startup Setup in Oman: Solar, Hydrogen and Incentive Options

Why are so many global companies rushing to Oman for renewable energy projects? The answer lies in the country’s natural resources, forward-looking policies, and the government’s focus on clean energy. 

For small and medium businesses, this means a chance to grow in a market with real demand and state support. But setting up a green energy startup in Oman also comes with concerns like permits, funding, and finding the right partners. At Jitendra Trademark and Patent Services, we help entrepreneurs solve these issues and start strong in the Omani market.

Why Oman Appeals To Green Energy Startups

Oman is positioning itself as a serious player in the renewable energy sector. Its location near Asian and European markets gives companies access to fast-growing demand for cleaner fuels. The government is pushing hard to diversify away from oil and has opened doors for entrepreneurs who want to enter solar and hydrogen energy. 

For any business, the attraction lies in the clear roadmap Oman has shared through its Vision 2040 plan. This roadmap shows how the country is set to move from dependence on oil to sustainable industries. Oman has targeted 30% of electricity generation from renewables by 2030, a move that makes the market more attractive for investors. The IEA also estimates Oman could produce 1 million tonnes of renewable hydrogen annually by 2030, further boosting its credentials as a green energy hub.

Solar Energy Startup Opportunities In Oman

Oman is blessed with sunlight for most of the year. This natural advantage is one reason why many international firms are already building solar plants here. For startups, solar energy in Oman is not only about big plants. Smaller firms can also provide rooftop solar, community projects, or partner with local industries to reduce their power costs.

The launch of projects like the 500 MW Manah-1 plant shows that Oman has both the capacity and infrastructure to handle large solar investments. In fact, the country added around 625 MW of new solar PV capacity in 2022 alone, highlighting the rapid growth of this sector. Such projects prove that the system works and encourage more private players to come in. 

Hydrogen Energy Startup Opportunities In Oman

Hydrogen energy in Oman is attracting global attention. The country’s deserts and ports make it a strong base for producing and exporting hydrogen to Asia and Europe. Businesses can expect long-term demand because many countries are making hydrogen part of their clean energy plans.

Oman’s green hydrogen agency Hydrom announced new incentives on 13 August 2025 for projects under Round 3 of its green hydrogen auction. These measures give investors more confidence. The auction made available land blocks of up to 300 km² in Duqm, with Oman targeting 1.38 million tonnes of green hydrogen annually by 2030 from awarded projects. For startups, hydrogen is not only about massive export projects. There is also scope in supplying parts, providing logistics, or offering consulting services to larger players. The pipeline of projects under development is already large, and that creates space for smaller firms to add value.

Incentive Options For Renewable Startups In Oman

Government support is one of the strongest reasons to set up a green energy startup in Oman. Apart from the policy shift, the incentives offered to renewable companies are designed to cut early costs and make projects viable. Investors and entrepreneurs can expect:

• Land lease reductions up to 90% during early project stages
• Corporate tax exemptions for up to 10 years
• Lower royalties in the first production years
• Access to free zones in Duqm, Sohar, and Salalah

These measures reduce the burden for startups and make Oman a cost-effective market compared with other GCC countries. With more than 100 global companies registering interest in Hydrom’s Round 3 auction, the incentives are proving to be a real draw. For SMEs, the lower entry costs can be a game changer.

Practical Steps For Setting Up A Green Energy Startup

Starting a renewable business in Oman involves more than just investment. Entrepreneurs need to follow local rules, secure permits, and build the right partnerships. A green energy startup in Oman will require strong planning, financial backing, and technical know-how.

The good news is that the business environment is improving. The government has streamlined the registration process and is actively helping foreign investors through investment promotion agencies. With the right advisors, the journey from idea to setup can be made smoother.

What Does It Cost To Build A Renewable Energy Business?

The cost of setting up depends on project size and sector. Solar startups can begin with smaller budgets focused on rooftop or industrial supply projects. Hydrogen projects demand far higher capital because of production and export requirements.

Still, with incentives like tax breaks and lease reductions, the actual cost in Oman can be lower compared with many other energy markets. For SMEs, the cost-benefit ratio is attractive if they choose the right niche and scale gradually. The government support helps reduce the risk during the early years when most startups face challenges.

How Jitendra Trademark and Patent Services Supports Entrepreneurs

Starting a green energy business in a new country can feel complex. At Jitendra Trademark and Patent Services, we simplify the process for foreign investors and corporates. Our team guides you on licensing, compliance, and incentive schemes. We also help with company formation, market entry, and connections with free zones.

If you are planning a solar or hydrogen energy business in Oman, we can give you practical support at every stage. With our experience, you can focus on building your startup while we handle the regulatory and setup work.