Press Release

A USD 6 Billion Saudi Arabia Solar Energy Market to Surge at a CAGR of Around 42% By 2030

The Saudi Arabia Solar Energy Market size was valued at around USD 6 billion in 2024 and is projected to reach USD 49 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 42% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The radiations from the sun are utilized to generate electricity, heating, and lighting, and are termed as solar energy. Some of the important chemical reactions in plants are also made possible by this solar energy. The increased use of solar energy in the country is a result of growing recognition of energy security, decreasing CO2 emissions, environmental sustainability, and the utilization of renewable energy resources.

As the geographical vicinity of Saudi Arabia is so favorable for the utilization of solar energy, the yearly solar electricity capacity in the country ranges from 2,000 kWh/m² to 2,500 kWh/m². It is among the largest on the globe. The global decline in oil prices has necessitated the country to diversify its energy sources. This has significantly affected and shaped the energy requirements landscape in the country.

Additionally, as per the National Renewable Energy Plan of the nation under Vision 2030, the primary goal set by the government is to utilize renewable sources of energy to fuel half of the electricity demand by the year 2030. The concentration on renewable energy of the country's government was seen by the goal to manufacture 9.5 GW of renewable energy in 2023, which for 2020 was only 3.45 GW. The setup of a 300 MW solar power plant in Sakaka indicates the large-scale adoption of solar energy in the country.

Moreover, the government is continuously making efforts to boost its energy capacity. The plan to build a 1 GW Al Masa Solar plant in Hail province and a 2GW Al Sadawi initiative by the government are demonstrating the efforts. These projects were launched in February 2024 and are among 4 major projects related to renewable energy. In continuance of these projects, by 2030 the Saudi Arabian government has planned to spend over USD 300 billion on renewable energy projects, further states the research report, “Saudi Arabia Solar Energy Market Analysis, 2025”.

Saudi Arabia Solar Energy Market Segmentation Analysis

Solar Photovoltaic (PV) Holds the Largest Market Share

Based on type, the market is further bifurcated into, Solar Photovoltaic (PV) and Concentrated Solar Power (CSP). Solar Photovoltaic leads the market, accounting for more than 65% share of the market. This high share is associated with the benefit of being least affected by the presence of clouds in solar energy generation. Unlike CSP, the Solar PV system doesn’t require direct sunlight for energy generation. Therefore, for the overall electricity generation capacity, solar PV accounts for over 3% share. Further, in 2023, around 1% of total energy is generated from solar PV only, resulting in the highest share of the Solar photovoltaic solar energy in the Saudi Arabia Solar Energy Market.

Residential Sector Consumes the Major Chunk of Total Solar Energy

The residential sector holds a major share of around 35% of the total solar energy industry to meet the growing electricity demand. Along with it, the government initiatives to reduce solar energy costs and the growing adaption of solar energy in the residential sector are also contributing to the growth of this segment in the surging solar energy industry. In continuation of this, small rooftop solar panels are being deployed with the aid of both private and public corporations, leading to the overall growth of the Saudi Arabia Solar Energy Market.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, ACWA Power Company, Saudi Aramco Power Company (SAPCO), Guangdong Power Engineering Company, JinkoSolar Holding Co. Ltd., Enel Green Power s.p.a., Desert Technologies, Baker Hughes Company, Engie SA, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry nationwide?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?