Standard Report: Saudi Arabia PV Market Study (2024)
Saudi Arabia is accelerating its transition to renewable energy, leveraging its vast solar resources and ambitious targets under Vision 2030. This report highlights the Kingdom’s solar PV market, segmented by deployment type (Utility, Commercial & Industrial, Residential), and provides insights into transformative projects and future opportunities.
Buy this report version for 3,500 EUR today.
*Tip: For only 4,500 EUR, you can get this report followed by 2 extra updates (for the upcoming 6 months DATA).
About This Report
This report offers an in-depth analysis of Saudi Arabia’s solar PV market, detailing the key drivers, emerging trends, major projects, and government policies shaping the sector. With an emphasis on utility-scale projects and growing local manufacturing, the report explores Saudi Arabia’s path to achieving its renewable energy targets.
Saudi Arabia Solar Photovoltaic (PV) Market Size
Saudi Arabia’s solar PV capacity is projected to grow from XX GW in 2024 to over XX GW by 2030, driven by its renewable energy target of 58.7 GW by 2030, of which 40 GW is dedicated to solar PV.
Key growth factors include:
- The National Renewable Energy Program (NREP), which facilitates large-scale solar developments.
- Expanding green hydrogen initiatives, which integrate solar PV for sustainable energy production.
- Localization of solar manufacturing, fostering domestic capabilities and reducing reliance on imports.
Saudi Arabia’s solar PV market plays a pivotal role in its decarbonization strategy and global leadership in renewable energy innovation.
Saudi Arabia Solar Photovoltaic (PV) Market Trends
1. Utility-Scale Solar: The Backbone of Growth
Utility-scale projects dominate Saudi Arabia’s solar PV capacity expansion:
- Sudair Solar Plant (1.5 GW): One of the world’s largest solar projects, designed to supply electricity to over 185,000 homes annually and reduce carbon emissions by 2.9 million tons per year.
- Sakaka Solar Plant (300 MW): The first operational utility-scale solar project in the Kingdom, serving as a model for subsequent developments.
- NEOM Green Hydrogen Project: A visionary initiative integrating solar PV with green hydrogen production, aiming to produce 650 tons of green hydrogen daily.
2. Green Hydrogen Integration
Saudi Arabia’s solar PV sector is closely tied to its ambition to become a global leader in green hydrogen:
- The NEOM project, powered by solar energy, is pivotal in establishing the Kingdom as a global exporter of hydrogen and derivative products like green ammonia.
- Solar PV contributes significantly to reducing the cost and emissions of hydrogen production.
3. Local Manufacturing of Solar Components
Vision 2030 emphasizes the localization of solar manufacturing, including panels, inverters, and EPC (engineering, procurement, and construction) capabilities:
- Investments in domestic solar factories are creating jobs, enhancing technical expertise, and reducing dependency on imports.
- The localization strategy aligns with the Kingdom’s broader economic diversification goals, contributing to sustainability and self-reliance.
4. Growth in Commercial & Industrial (C&I) Solar
C&I solar adoption is increasing as businesses seek to reduce operational costs and meet sustainability targets:
- Rooftop and hybrid solar systems are becoming popular among industrial facilities, particularly for energy-intensive operations.
- The Mutajaddeda Program provides financial incentives and tax benefits, encouraging solar adoption in the private sector..
Table Of Contents
- Objectives
- Information Resources
- Methodology
- Introduction
- Solar PV Initiatives and Programs
- Government Regulations and Policies
- Installed Capacity
- Solar PV Capacity by Sector
- Major Upcoming Projects
- Market Challenges
- Solar PV Market Forecasting
Scope Of The Report
The Saudi Arabia Solar PV Market is segmented into:
- Utility-Scale Solar PV: Large-scale installations exceeding 100 MW, supporting grid electricity supply and green hydrogen projects.
- Commercial & Industrial Solar PV: Distributed generation systems for businesses, factories, and industrial facilities.
- Residential Solar PV: Rooftop solar installations for urban and suburban households.
The report includes market sizing and forecasts based on installed capacity (MW), highlighting regulatory frameworks, financial mechanisms, and sector-specific opportunities.
Frequently Asked Questions
Saudi Arabia’s installed solar PV capacity exceeds XX GW as of 2023. With a target of 40 GW of solar PV by 2030, the market is set for rapid growth, driven by utility-scale projects and expanding private-sector participation.
Key policies include:
- National Renewable Energy Program (NREP): Aims to accelerate renewable energy deployment through competitive bidding processes.
- Mutajaddeda Program: Provides financial incentives and tax exemptions for solar PV installations in the C&I sector.
- Vision 2030: Anchors the country’s renewable energy goals within its broader economic diversification strategy.
Solar PV powers green hydrogen projects like NEOM, enabling cost-effective and sustainable production of green hydrogen and ammonia for domestic use and export.
- Grid Infrastructure: Existing infrastructure requires modernization to accommodate large-scale solar energy inputs.
- Land Accessibility: Securing land for utility-scale solar projects can be challenging in densely developed or ecologically sensitive areas.
- Economic Competitiveness: Low electricity tariffs reduce the financial appeal of solar PV for residential consumers.
- Grid Capacity Issues: Existing infrastructure struggles with increased renewable inputs.
- Financial Barriers: Limited access to financing for SMEs and high upfront costs for solar-plus-storage systems.
- Policy Transition Challenges: Adjusting to the new net billing system may require increased consumer education and adaptation.
