The Saudi Arabia solar photovoltaic (PV) market size continues to expand as the country accelerates its transition to renewable energy. The government has implemented ambitious solar energy goals under Vision 2030, increasing investments in large-scale solar projects and incentivizing private sector participation. With abundant sunlight, advancing technology, and favorable regulations, Saudi Arabia is positioning itself as a leader in solar PV adoption across the Middle East.

Market Size

Saudi Arabia’s solar PV market reached 1.90 gigawatts (GW) in 2024. The market is expected to expand at a compound annual growth rate (CAGR) of 11.5% between 2025 and 2034, reaching 5.26 GW by 2034. The country’s commitment to reducing dependence on fossil fuels and diversifying its energy mix has fueled the expansion of solar PV infrastructure.

Government-led initiatives, such as the Saudi Green Initiative, continue to drive investments in solar energy. The decline in the cost of solar modules and advancements in photovoltaic technology have made solar energy an attractive option for businesses and households. Additionally, favorable policies, including power purchase agreements (PPAs) and financial incentives for independent power producers (IPPs), encourage private sector involvement in the market.

Saudi Arabia’s demand for clean energy continues to rise, increasing the adoption of solar PV across utility-scale, commercial, and residential sectors. More businesses and homeowners are installing rooftop solar systems, supported by net metering policies and incentives that reduce electricity costs and promote energy independence.

Market Trends

• Rapid Expansion of Utility-Scale Solar Projects: The country is developing some of the world’s largest solar farms, such as the Sakaka and Sudair solar projects, to meet its renewable energy targets.

• Declining Costs of Solar PV Modules: Technological advancements and large-scale production have significantly reduced the cost of solar panels, making solar energy more accessible to businesses and consumers.

• Increased Private Sector Participation: The government has introduced regulatory reforms and financial incentives to attract private investors and independent power producers to expand solar energy infrastructure.

• Integration of Energy Storage Systems: Battery storage solutions are being integrated with solar PV installations to enhance grid stability and energy reliability, enabling 24/7 power supply.

• Adoption of Smart Grid Technology: Saudi Arabia is investing in smart grid systems to optimize energy distribution, monitor power consumption, and improve the efficiency of solar energy use.

• Growing Interest in Hybrid Solar Systems: Many businesses and industries are adopting hybrid solar systems, which combine solar PV with energy storage or backup power solutions, ensuring uninterrupted energy supply.

Market Growth

The growth of Saudi Arabia’s solar PV market stems from multiple factors, including strong policy support, rising investments, and advancements in solar technology.

• Government Support and Renewable Energy Goals: The country’s Vision 2030 strategy prioritizes renewable energy, targeting an increase in solar PV capacity to meet sustainability goals.

• Expansion of Solar Power in the Residential Sector: More households are adopting solar PV systems to reduce electricity bills and increase energy self-sufficiency. Net metering and government incentives support this trend.

• Development of Large-Scale Solar Farms: Saudi Arabia is investing in massive solar farms to supply clean energy to the national grid, reducing reliance on conventional power sources.

• Corporate Investments in Clean Energy: Major industrial players are investing in solar energy to lower operational costs and meet corporate sustainability targets.

• Advancements in Photovoltaic Technology: Higher efficiency solar panels and bifacial solar modules are improving energy output and making solar power more viable.

• Smart Financing and PPAs: Companies and investors benefit from innovative financing mechanisms, including long-term PPAs, that reduce financial risks and encourage large-scale solar adoption.

Market Segmentation

By Technology Type

• Thin Film Solar PV: Thin film panels offer lightweight and flexible solar solutions. Their lower cost and ability to perform well in high-temperature environments make them a preferred option for large-scale solar installations.

• Multi-Si Solar PV: Multicrystalline silicon panels remain a popular choice due to their affordability and high efficiency. They are widely used in both residential and commercial solar applications.

• Mono-Si Solar PV: Monocrystalline silicon panels provide higher efficiency and superior performance in limited space, making them ideal for rooftop and utility-scale projects.

By Deployment

• Ground-Mounted Solar PV: Large-scale solar farms rely on ground-mounted systems, which maximize energy production and are typically deployed in open areas.

• Rooftop Solar PV: Businesses and homeowners are increasingly installing rooftop solar PV systems to cut energy costs and reduce reliance on traditional electricity sources.

By Connectivity

• On-Grid Solar PV Systems: Grid-connected systems allow users to feed excess power into the grid, reducing energy costs and ensuring efficient electricity distribution.

• Off-Grid Solar PV Systems: Remote locations and industrial sites are adopting off-grid solar PV systems to generate power without relying on national grid infrastructure.

By End-Use Sector

• Residential Solar PV: Homeowners are leveraging solar power for cost savings and energy independence, aided by government incentives.

• Commercial Solar PV: Businesses are investing in solar energy to achieve sustainability goals and reduce operational costs.

• Utility-Scale Solar PV: Large-scale solar projects contribute significantly to Saudi Arabia’s clean energy targets, supplying power to the national grid.

Key Market Players

Several leading companies are driving Saudi Arabia’s solar PV market, investing in infrastructure development and technological advancements to meet the growing demand for clean energy.

• ACWA Power: A key player in Saudi Arabia’s renewable energy sector, ACWA Power develops large-scale solar PV projects, contributing to the country’s clean energy targets.

• Saudi Electricity Company (SEC): As the country’s primary utility provider, SEC plays a crucial role in integrating solar energy into the national grid and expanding renewable energy infrastructure.

• First Solar: A global leader in photovoltaic technology, First Solar provides high-efficiency solar panels and solutions for utility-scale solar farms in Saudi Arabia.

• SunPower Corporation: SunPower specializes in high-performance solar technology, offering advanced solar PV systems that support Saudi Arabia’s renewable energy goals.

• Canadian Solar: This company supplies high-quality solar PV modules for large-scale solar projects, helping to accelerate solar energy adoption in the region.

• JinkoSolar: One of the world’s largest solar module manufacturers, JinkoSolar provides solar panels and integrated solar energy solutions to various sectors in Saudi Arabia.

• Trina Solar: Trina Solar offers a wide range of photovoltaic products and solar tracking systems, supporting Saudi Arabia’s transition to renewable energy.

These companies are actively expanding their presence in Saudi Arabia, collaborating with government agencies and private enterprises to develop innovative solar solutions that align with the country’s long-term sustainability vision.