
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2020 - 2023 |
CAGR | 51.00 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Solar Energy Market Analysis
The Saudi Arabia Solar Energy Market is expected to register a CAGR of greater than 51% during the forecast period.
Saudi Arabia's strategic position in the global solar energy landscape is strengthened by its exceptional natural resources and geographical advantages. The country receives an average of 8.9 hours of sunshine per day and demonstrates solar irradiation levels of 250 W/m2, significantly exceeding the global average of 100-200 W/m2 for high-potential solar power areas. This natural endowment, combined with the country's robust infrastructure development and growing industrial base, positions Saudi Arabia as a prime location for solar energy development. The nation's commitment to sustainable development is further evidenced by its improving Human Development Index (HDI) value of 0.854, reflecting advancements in education, healthcare, and overall quality of life that support the transition to renewable energy.
The energy sector in Saudi Arabia is undergoing a significant transformation, moving away from its traditional reliance on fossil fuels. As of 2021, the country's electricity generation mix comprised 60.55% natural gas and 39.22% oil, highlighting the substantial opportunity for solar energy integration. This transition is supported by robust industrial development, exemplified by the Saudi Authority for Industrial Cities and Technology Zones (MODON)'s September 2022 announcement to establish 23 solar manufacturing plants across 12 industrial cities, significantly boosting domestic manufacturing capabilities and reducing import dependence.
The market is witnessing substantial private sector participation and technological advancement. A notable development occurred in June 2022 when Ma'aden, the state-owned mining company, and GlassPoint signed a memorandum of understanding to develop a 1,500 MWth solar project at Ma'aden's alumina refinery in Ras al Khair. This project represents a significant step forward in industrial applications of solar technology and demonstrates the versatility of solar solutions in supporting various sectors of the economy. The government's commitment is further evidenced by its allocation of USD 906.67 million towards clean energy initiatives.
The solar energy ecosystem in Saudi Arabia is experiencing rapid evolution in terms of regulatory framework and industrial capabilities. In March 2022, the Ministry of Energy, in collaboration with the Ministry of Industry and Mineral Resources, introduced a landmark initiative allowing renewable energy companies to obtain industrial licenses, marking a significant step in streamlining the sector's development. This regulatory advancement, coupled with the country's growing population of 35.4 million (as of 2021) and declining illiteracy rate to 3.7%, creates a strong foundation for sustained market growth and technological innovation in the solar power sector.
Saudi Arabia Solar Energy Market Trends
Supportive Government Policies and Upcoming Projects
The Saudi Arabian government has implemented robust policy frameworks and initiatives to drive the adoption of solar energy technologies. The Saudi Green Initiative, launched in 2021, has set an ambitious target to increase the share of renewable energy to 50% of the primary energy mix by 2030, with the remaining 50% coming from natural gas. This commitment is further strengthened by Vision 2030, which aims to develop more than 40 GW of solar photovoltaic capacity and 2.7 GW of concentrated solar power capacity. The Renewable Energy Project Development Office (REPDO), established in 2017 within the Ministry of Energy, oversees the National Renewable Energy Program (NREP) implementation, which plans to develop 4,370 MW of solar energy to power approximately 6.17 million houses and reduce carbon emissions by 98.18 million tons annually.
The government's commitment is evidenced by several large-scale projects launched in 2023. The Saudi Power Procurement Company (SPPC) is actively developing two major solar projects: a 1.1 GW facility in Al Hanakia, Medina province, and a 400 MW plant in Tabarjal. These projects are part of a broader 3.3 GW renewable energy capacity tender launched by SPPC. Additionally, significant developments include the Sudair Solar Project, which will be one of the largest solar power plants globally with a 1,500 MW capacity, capable of powering 185,000 homes and reducing carbon emissions by 2.9 metric tons annually. The government has also introduced supportive financing mechanisms through the Saudi Industrial Development Fund (SIDF), which launched a USD 28 billion fund to support solar installation projects and manufacturers, offering long-term financing options extending up to 20 years.
The country's natural geographical advantages significantly complement these policy initiatives, with Saudi Arabia receiving an average of 8.9 hours of daily sunshine and horizontal solar radiation of 5,600 Wh/m2. This exceptional solar potential is being harnessed through innovative projects such as the recently announced world's largest solar process steam plant, developed through a partnership between MA'ADEN and GlassPoint. The plant is expected to reduce carbon emissions by 600,000 metric tons annually, demonstrating the government's commitment to combining industrial development with sustainable energy solutions. Furthermore, the Ministry of Energy has streamlined the process for renewable energy companies to obtain industrial licenses, introducing import duty exemptions and other incentives to attract investments in the sector.
Segment Analysis: By Type
Solar PV Segment in Saudi Arabia Solar Energy Market
The Solar Photovoltaic (PV) segment dominates the Saudi Arabia solar energy market, accounting for approximately 98% of the total installed capacity in 2024. This significant market share is driven by several large-scale solar power projects and supportive government initiatives under Saudi Vision 2030. The segment is also experiencing rapid growth with a projected growth rate of around 52% during 2024-2029, supported by major developments like the Sudair Solar Project with 1500 MW capacity and the Al Hinakiyah project with 1100 MW capacity. The Saudi government's commitment to achieving 40 GW of solar PV capacity by 2030 has led to increased investments in utility-scale solar PV projects. Additionally, the country has launched various initiatives to promote domestic solar PV manufacturing, including the establishment of 23 solar PV manufacturing plants across 12 industrial cities, which further strengthens the segment's market position.

CSP Segment in Saudi Arabia Solar Energy Market
The Concentrated Solar Power (CSP) segment plays a crucial role in Saudi Arabia's renewable energy landscape, offering unique advantages such as thermal storage capacity and hybrid operation capability with other fuels. The segment is particularly valuable for industrial applications, including enhanced oil recovery, water desalination, and chemical production. The Saudi government has set ambitious targets for CSP deployment, aiming to install 2.7 GW of concentrated solar power projects by 2030. Recent developments in the segment include significant projects like the hybrid solar Hinakiyah project and the Ma'aden-GlassPoint partnership for a 1,500 MWth solar steam project at the Ras al Khair alumina refinery. These initiatives demonstrate the growing importance of CSP technology in meeting Saudi Arabia's industrial energy needs while contributing to its renewable energy goals.
Saudi Arabia Solar Energy Industry Overview
Top Companies in Saudi Arabia Solar Energy Market
The Saudi Arabian solar energy market is led by prominent players, including ACWA Power Company, Alfanar Group, Abu Dhabi Future Energy Company (MASDAR), EDF Renewables, and Saudi Electricity Company. These companies are driving innovation through investments in advanced solar PV technologies and perovskite-based cells, particularly through research partnerships with institutions like King Abdullah University of Science and Technology. Operational excellence is being achieved through strategic collaborations and joint ventures, enabling efficient solar project execution and knowledge sharing. Companies are expanding their footprint by participating in the National Renewable Energy Programme (NREP) tenders and developing large-scale solar projects like the Sudair Solar Power Project and Al-Faisaliah PV Project. The market is witnessing an increased focus on the localization of solar manufacturing capabilities and the development of integrated solar solutions to meet the growing demand.
Strong Mix of Local and International Players
The Saudi Arabian solar energy market demonstrates a balanced mix of well-established local conglomerates and international renewable energy specialists. Local players like ACWA Power and Saudi Electricity Company leverage their deep understanding of the domestic market and strong government relationships, while international players such as EDF Renewables and Masdar bring global expertise and technological capabilities. The market structure is characterized by strategic partnerships between local and international firms, fostering knowledge transfer and capacity building in the domestic solar industry. These collaborations are particularly evident in large-scale utility projects where companies combine their complementary strengths in project development, financing, and technical expertise.
The market shows moderate consolidation with a handful of major players dominating large-scale projects, while smaller players focus on distributed solar installations and specialized services. Merger and acquisition activity is primarily driven by international companies seeking to establish or expand their presence in the Saudi market through partnerships with local entities. The government's push for the localization of the solar industry supply chain is influencing market dynamics, encouraging international players to establish local manufacturing facilities and form joint ventures with Saudi companies.
Innovation and Localization Drive Future Success
For incumbent players to maintain and expand their market share, focus needs to be placed on developing innovative financing models and turnkey solutions that align with Saudi Arabia's Vision 2030 renewable energy goals. Companies must invest in building local manufacturing capabilities and training the Saudi workforce to meet localization requirements while maintaining cost competitiveness. Success will increasingly depend on the ability to integrate advanced technologies like smart grid solutions and energy storage systems with solar installations. Established players need to strengthen their research and development partnerships with local institutions and maintain strong relationships with government stakeholders to participate in upcoming project opportunities.
New entrants and contenders can gain ground by focusing on specialized market segments such as rooftop solar installations or operations and maintenance services, where barriers to entry are relatively lower. The increasing emphasis on domestic manufacturing presents opportunities for companies with manufacturing expertise to establish production facilities in Saudi Arabia. Success factors include developing strong local partnerships, demonstrating technological differentiation, and building expertise in specific applications such as desert-optimized solar solutions. The regulatory environment is expected to remain supportive, with policies encouraging private sector participation and domestic value chain development, though companies must stay adaptable to evolving localization requirements and technical standards.
Saudi Arabia Solar Energy Market Leaders
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Alfanar Group
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Abu Dhabi Future Energy Company (Masdar)
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EDF Renewables
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Saudi Electricity Company
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ACWA Power Company
- *Disclaimer: Major Players sorted in no particular order

Saudi Arabia Solar Energy Market News
In June 2022, China Energy Engineering Group, Guangdong Power Engineering Company (GPEC) awarded the LONGia module supply contract for the 400 MW (DC) Rabigh Solar PV IPP project in Saudi Arabia. LONGiHi-MO 5(72C) solar modules are expected to be installed in this solar PV project under construction. The project site is located in Rabigh Industrial City in the western Makkah Province of the country, approximately 150 kilometers west of Jeddah.
In March 2022, under the third round of Saudi Arabia's National Renewable Energy Programme(NREP), a contract was awarded to China-based Jinko Power to develop the 300MW Saad photovoltaic (PV) solar project. As part of the competitive tendering process, Jinko Power and Jinko Power Dhafra Holding signed a 25-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC). The consortium submitted a tariff of SAR 5.56255/kWh for the project.
Saudi Arabia Solar Energy Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Solar Energy Installed Capacity and Forecast in MW, till 2027
- 4.3 Renewable Energy Mix, 2020
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.2 Restraints
- 4.7 Supply Chain Analysis
- 4.8 PESTLE Analysis
5. MARKET SEGMENTATION - BY TYPE
- 5.1 Solar Photovoltaic (PV)
- 5.2 Concentrated Solar Power (CSP)
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 ACWA Power Company
- 6.3.2 Alfanar Group
- 6.3.3 Abu Dhabi Future Energy Company (Masdar)
- 6.3.4 EDF Renewables
- 6.3.5 Saudi Electricity Company
- 6.3.6 Engie SA
- 6.3.7 JinkoSolar Holding Co. Ltd
- 6.3.8 Enel SpA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Solar Energy Industry Segmentation
Solar energy is a type of renewable energy where solar panels are used to generate electricity. Solar panels deployed on rooftops or mounted on the grounds are utilized effectively by energy consumers.
Saudi Arabia's solar energy market is segmented by type into solar photovoltaic (PV) and concentrated solar energy (CSP). For each segment, the market sizing and forecasts have been done based on the installed capacity (MW).
Saudi Arabia Solar Energy Market Research FAQs
What is the current Saudi Arabia Solar Energy Market size?
The Saudi Arabia Solar Energy Market is projected to register a CAGR of greater than 51% during the forecast period (2025-2030)
Who are the key players in Saudi Arabia Solar Energy Market?
Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, Saudi Electricity Company and ACWA Power Company are the major companies operating in the Saudi Arabia Solar Energy Market.
What years does this Saudi Arabia Solar Energy Market cover?
The report covers the Saudi Arabia Solar Energy Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Solar Energy Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Saudi Arabia Solar Energy Market Research
Mordor Intelligence provides a comprehensive analysis of the Saudi Arabia solar energy market. We leverage our extensive expertise in the renewable energy and clean energy sectors. Our detailed report covers the complete ecosystem, from solar panels and PV systems to solar cells and photovoltaic technologies. The analysis includes key components such as solar inverters, solar modules, and solar mounting systems. We also examine both concentrated solar power and solar thermal applications. Our research methodology offers in-depth insights into solar technology advancements and solar equipment developments. This information is available in an easy-to-download report PDF format.
The report provides stakeholders with valuable insights into various market segments, including residential solar, commercial solar, rooftop solar, and solar farm installations. We offer a detailed analysis of solar storage solutions, including solar battery technologies and solar tracker systems. This enables informed decision-making for solar project development. The comprehensive coverage extends to solar electricity generation, solar components, and complete solar PV systems. This helps stakeholders understand the evolving landscape of solar installations across Saudi Arabia. Our analysis includes detailed solar power generation forecasts and emerging trends in solar generation, delivering actionable intelligence for market participants.