Saudi Arabia’s solar energy market is undergoing rapid expansion, with its value expected to rise from USD 2.5 billion in 2024 to USD 7.72 billion by 2030, according to Research and Markets. This growth, marked by a projected annual increase of 20.5%, is fueled by the Kingdom’s Vision 2030 strategy, which aims to diversify energy sources and reduce reliance on hydrocarbons.
Government initiatives, including the National Renewable Energy Program targeting 27.3 gigawatts of renewable capacity by 2024, have created a favorable environment for solar investments. Supportive policies, streamlined permitting, and long-term power purchase agreements are attracting both local and international investors.
Saudi Arabia’s abundant sunlight, particularly in regions such as the Empty Quarter, gives it a strategic edge in solar power generation. The Kingdom has set a goal to install 50 gigawatts of renewable energy by 2030, with 40 gigawatts coming from solar projects.
Technological innovation is central to this progress. Companies like ACWA Power International and Trina Solar Co., Ltd. are advancing photovoltaic technology, including bifacial panels and energy storage systems, making solar power more efficient and commercially viable.
The solar sector is also contributing to economic diversification by creating jobs in construction, installation, and maintenance, and by fostering local expertise. However, challenges such as integrating solar power into the national grid, securing financing, and managing water scarcity for panel cleaning remain. Investments in grid upgrades and innovative water-saving technologies are underway to address these issues.
Emerging trends include:
- Decentralized solar installations
- Integration with green hydrogen production
- Increased digitalization
Corporations are also driving demand by procuring renewable energy.
The photovoltaic cells segment leads the market, with Riyadh at the forefront of solar initiatives due to its infrastructure and government support. The competitive landscape features major players including ACWA Power International, Saudi Electricity Company, Saudi Arabian Oil Co., and Trina Solar Co., Ltd.
In summary, Saudi Arabia is positioning itself as a global leader in solar energy, leveraging its natural resources, government backing, and technological advancements to drive sustainable growth and economic diversification.
