Saudi Arabia Solar Power Market Overview, 2030

Saudi Arabia, historically known as the world’s largest oil exporter and home to 17% of the world’s proven oil reserves, is undergoing a significant transformation in its energy sector. For decades, the Kingdom's economy has been heavily reliant on fossil fuels, particularly oil, which accounts for approximately 50% of the country’s GDP. However, as global energy trends shift towards sustainability and low-carbon alternatives, Saudi Arabia has recognized the need to diversify its energy mix and reduce its dependence on oil. The ambitious Vision 2030 plan, launched in 2016, set the stage for a massive energy transition, initially targeting the deployment of 9.5 GW of renewable energy capacity by 2030. In response to growing global demand for clean energy and the Kingdom's increasing domestic power requirements, the target has since been revised upward, with new goals now aiming for 130 GW of renewable energy capacity by the end of the decade. This shift is driven by the need to ensure energy security, reduce carbon emissions, and capitalize on the vast renewable energy potential, particularly in solar and wind power, which Saudi Arabia is well-positioned to harness. With abundant solar radiation and favorable wind conditions, the Kingdom has the natural resources to become a leading player in the renewable energy sector. The country has already made impressive strides, adding 2.1 GW of renewable power capacity between 2022 and 2024, marking a 300% increase from the previous decade. The strategic focus on solar power, which accounted for 82.6% of Saudi Arabia's renewable capacity in 2023, underscores the country's commitment to clean energy. A series of large-scale solar projects, such as the Sudair IPP, Sakaka IPP, and Rabigh Solar PV Park, are paving the way for further expansion.

According to the research report, "Italy Solar Market Overview, 2030," published by Bonafide Research, the Italy solar market is anticipated to add more than USD 1.22 Billion by 2025–30. The market has seen significant growth in recent years, driven by Italy's ambitious renewable energy targets, and the expansion of solar energy systems. In 2023, Italy's installed solar capacity was over 25 GW, with continued expansion expected due to favorable policies, technological advancements, and a supportive regulatory environment. Comparing regional performance, Italy is a key player in Europe, benefiting from its high solar irradiance, and a mature energy market. In contrast, the Middle East and Africa (MEA) market, while experiencing rapid growth, faces unique challenges such as geopolitical issues and reliance on oil-based economies. However, increasing investments in solar power are steadily transforming the region. Public-Private Partnerships (PPP) and demographic trends play a significant role in both regions. Italy, with its aging population, is focusing on energy efficiency and sustainable solutions, while MEA countries like Saudi Arabia target large-scale infrastructure projects to address growing energy demands. The key players in Italy's solar market include Enel Green Power, Falck Renewables, and Terna Energy, which are leading the charge in solar power production and integration. New entrants, such as NextEra Energy and SolarEdge, are also making significant strides, contributing to the sector's competitiveness. Between 2021 and 2022, Italy witnessed important policy developments, including the National Energy and Climate Plan (NECP), which aims to increase renewable energy share to 55% by 2030. Trade statistics show that Italy’s renewable energy sector, particularly solar, benefits from strong export opportunities, with significant production capabilities in photovoltaic panels, and the country is a major player in the global solar market. The COVID-19 pandemic initially slowed project timelines, but the industry showed resilience with a return to pre-pandemic growth rates by mid-2021.

Saudi Arabia's solar power market is categorized into several key segments, with photovoltaic (PV) systems representing the largest share, dominating the renewable energy landscape. PV systems have seen significant growth due to their versatility in residential, commercial, and industrial applications. Concentrated Solar Power (CSP) systems, although offering high potential for large-scale projects, remain a smaller segment due to their higher upfront costs and technological complexity. In terms of product segmentation, solar panels constitute the most significant portion of the market, driven by continued cost reductions and technological advancements. Inverters, which are crucial for converting DC power generated by solar panels into usable AC power, also hold a substantial share. The battery and charge controller segments are gaining traction, particularly in off-grid and residential solar installations, as the demand for energy storage solutions increases. Price trends in Saudi Arabia’s solar market show a decline in the average selling price (ASP) of solar panels and inverters due to economies of scale, improved manufacturing, and market expansion, making solar energy more accessible. However, CSP technology, while still in its developmental phase, faces challenges related to high installation costs and competition from the more established PV systems. Despite these hurdles, the PV segment continues to drive market growth, supported by government incentives, favorable policies, and increasing adoption of energy storage systems. The region's emphasis on large-scale solar projects is evident as Saudi Arabia pushes forward with its renewable energy goals, although challenges such as regulatory hurdles and grid integration remain.

Saudi Arabia’s solar energy market is rapidly evolving, driven by the nation’s ambitious Vision 2030 goals and its increasing demand for renewable power sources. The residential, commercial, and industrial sectors are experiencing a notable shift toward solar adoption as the country seeks to diversify its energy mix and reduce reliance on fossil fuels. A key driver for this transition is the cost-efficiency of solar power, which has seen significant reductions in pricing due to advancements in technology and economies of scale. For residential users, the growing popularity of rooftop solar installations is evident, with increasing numbers of households opting for energy solutions that lower electricity costs while supporting sustainability. Commercial and industrial entities, particularly those with large energy consumption, are turning to solar as a long-term investment, with the added benefit of reducing operational costs and aligning with global environmental goals. The demand for off-grid and hybrid systems has also increased, particularly in remote areas, where solar power combined with energy storage solutions like batteries offers a reliable alternative to traditional energy grids. As for the sales channels, direct sales and government tenders are the dominant routes, with an emphasis on providing attractive financing options and incentives to encourage adoption. Cultural factors also play a role, as there is a growing awareness of climate change and a desire to align with the kingdom’s long-term sustainability goals. Regionally, the central and southern regions of Saudi Arabia are seeing more aggressive growth in solar adoption, with favorable climates and ample space for large-scale installations. Moreover, solar adoption is increasingly becoming part of the national discourse, further supported by government policies that incentivize renewable energy projects and promote Saudi Arabia’s position as a global leader in the renewable energy space.

Major Companies present in the market:
Canadian Solar Inc., Trina Solar Co., Limited, Jinko Solar Holding Co., Limited, Longi Green Energy Technology Co., Limited, JA Solar Technology Co., Limited, Sunpower Corporation, First Solar Inc., Hanwha Corporation, Abengoa, S.A., Engie SA



Considered in this report
• Historical year: 2018
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Solar power market with its value and forecast along with its segments
• Region-wise solar power market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report
• North America
• Europe
• Asia-Pacific
• Latin America
• Middle-East & Africa

Types of Technology in the report:
• Solar Photovoltaic
• Concentrated Solar Power (CSP)
• Others

By Product
• Solar Panels
• Charge Controllers
• Batteries
• Inverters
• Others

By Installation
• Ground mounted
• Roof mounted
• Others

By Application in the report:
• Residential
• Commercial/ Industrial
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to solar power industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.