Saudi Arabia Solar Energy Market Overview

Market Size in 2024 : USD 6.0 Billion

Market Size in 2033: USD 125.2 Billion

Market Growth Rate 2025-2033: 39.36%

According to IMARC Group's latest research publication,"Saudi Arabia Solar Energy Market Report by Type (Solar Photovoltaic (PV), Concentrated Solar Power (CSP)), and Region 2025-2033", Saudi Arabia solar energy market size reached USD 6.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 125.2 Billion by 2033, exhibiting a growth rate (CAGR) of 39.36% during 2025-2033.

Growth Factors in the Saudi Arabia Solar Energy Market

• Vision 2030 and Government Support

Solar energy in Saudi Arabia is gaining momentum as the country’s Vision 2030 initiative acts as a major catalyst for market growth, aiming to diversify the economy away from oil dependency. The government has introduced supportive policies, such as long-term Power Purchase Agreements (PPAs) and tax incentives, to attract investment. For instance, the National Renewable Energy Program (NREP) has facilitated projects like the Sakaka Solar Plant, which generates 900 GWh annually, powering 75,000 homes. These initiatives create a favorable environment for both domestic and international investors, encouraging large-scale solar projects and fostering economic diversification through job creation in construction and maintenance.

• Abundant Solar Resources

Saudi Arabia’s geographical advantage, with its high solar irradiance and vast desert landscapes, makes it an ideal location for solar energy development. The country receives approximately 12 hours of sunlight daily, particularly in regions like the Empty Quarter. This natural abundance supports large-scale projects like the Sudair Solar Power Project, which is set to be one of the world’s largest single-site solar initiatives. The availability of expansive, non-arable land further reduces costs for ground-mounted solar installations, enabling efficient energy generation and positioning Saudi Arabia as a global leader in solar power production.

• Declining Solar Technology Costs

The decreasing cost of solar technology globally has significantly boosted Saudi Arabia’s solar market. Advances in photovoltaic (PV) panels and energy storage systems have made solar projects more economically viable. For example, the use of cost-effective bifacial solar panels in projects like the Al Shuaibah solar plant enhances energy yields by capturing sunlight on both sides. These technological improvements, combined with economies of scale from large-scale projects, allow developers to offer competitive electricity prices, making solar a compelling alternative to traditional fossil fuels and driving widespread adoption across the Kingdom.

Key Trends in the Saudi Arabia Solar Energy Market

• Rise of Large-Scale Solar Projects

Saudi Arabia is witnessing a surge in large-scale solar projects, driven by ambitious renewable energy targets. The Al Shuaibah solar project, with a planned capacity of 2,060 MW, exemplifies this trend, aiming to be the world’s largest single-site solar plant by 2025. Such projects are supported by partnerships with major players like ACWA Power and international firms like JinkoSolar. These initiatives not only increase installed capacity but also create opportunities for technological innovation and local job growth, reinforcing Saudi Arabia’s commitment to scaling up its renewable energy infrastructure.

• Focus on Localization and Supply Chain Development

The solar market is seeing a growing emphasis on localizing the solar value chain, aligning with Vision 2030’s goal of economic diversification. The Public Investment Fund (PIF) has signed agreements, such as those in July 2024 with renewable energy firms, to establish local manufacturing of solar components. This trend reduces reliance on imports and fosters domestic expertise. For instance, the Renewable Energy Localization subsidiary (RELC) is working to produce solar and wind equipment locally, creating jobs and building a sustainable supply chain to support the Kingdom’s renewable energy ambitions.

• Integration of Advanced Technologies

Technological advancements are shaping the Saudi solar market, with innovations like bifacial panels, advanced tracking systems, and energy storage solutions gaining traction. Projects like the NEOM Green Hydrogen initiative, which uses solar power to produce green hydrogen, highlight the integration of cutting-edge technologies. These advancements improve energy efficiency and address challenges like grid instability due to solar’s intermittent nature. By investing in smart grid solutions and battery storage, Saudi Arabia is ensuring reliable power supply, positioning itself as a pioneer in sustainable energy technologies and enhancing the viability of solar energy.

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Saudi Arabia Solar Energy Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Type:

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ACWA Power Company
• Alfanar Group
• EDF Renewables
• ENGIE Solutions
• Masdar (Abu Dhabi Future Energy Company)
• Saudi Electricity Company

Future Outlook

The future of Saudi Arabia’s solar energy market is promising, driven by ambitious renewable energy targets and technological innovation. The Kingdom aims to achieve 50% renewable energy in its power mix by 2030, with solar playing a central role. Projects like the NEOM Green Hydrogen initiative, which uses solar power to produce green hydrogen, signal a shift toward integrated clean energy solutions. Despite challenges like grid integration and regulatory complexities, investments in smart grid technologies and streamlined policies are expected to pave the way for growth. With continued government support, international partnerships, and a focus on sustainability, Saudi Arabia is poised to become a global leader in solar energy, contributing to both economic diversification and environmental goals.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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