Saudi Arabia Solar Energy Market Overview

Market Size in 2025: USD 8.3 Billion

Market Size in 2034: USD 145.4 Billion

Market Growth Rate 2026-2034: 37.39%

According to IMARC Group's latest research publication, "Saudi Arabia Solar Energy Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia solar energy market size reached USD 8.3 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 145.4 Billion by 2034, exhibiting a growth rate (CAGR) of 37.39% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Solar Energy Market

• AI optimizes solar panel positioning and energy output forecasting, significantly improving efficiency across Saudi Arabia's vast desert installations.
• Predictive maintenance powered by AI reduces operational downtime and extends equipment lifespan in harsh Saudi climatic conditions.
• AI-driven energy management systems enable smart grid integration, balancing solar generation with storage and distribution networks effectively.
• Machine learning algorithms enhance solar irradiance prediction, allowing better planning and maximizing energy capture throughout daily cycles.
• AI facilitates automated defect detection in solar panels through drone imagery, ensuring consistent performance across megawatt-scale installations.

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How Vision 2030 is Transforming Saudi Arabia Solar Energy Industry

Saudi Arabia's Vision 2030 is fundamentally reshaping the solar energy industry by establishing renewable energy as a cornerstone of economic diversification. The initiative drives demand for large-scale photovoltaic installations and concentrated solar power systems, supporting the Kingdom's ambitious target of generating 50% of electricity from renewables by 2030. This transformation is catalyzing massive investments in solar infrastructure, with projects like the Al Shuaibah complex setting global benchmarks while promoting local manufacturing through strategic partnerships. The government's commitment includes streamlined permitting processes, attractive power purchase agreements, and substantial funding through the Public Investment Fund, positioning Saudi Arabia as a regional leader in sustainable energy transition while reducing dependence on fossil fuels and creating new economic opportunities across the renewable energy value chain.

Saudi Arabia Solar Energy Market Trends & Drivers:

Saudi Arabia's solar energy market is experiencing explosive growth driven by favorable government initiatives under Vision 2030 and the National Renewable Energy Program. The Ministry of Energy's strategic framework provides comprehensive support through long-term power purchase agreements, streamlined project approvals, and attractive investment incentives, creating an enabling environment for both domestic and international solar developers. The Public Investment Fund's substantial commitments through subsidiaries like Badeel and partnerships with leading developers such as ACWA Power are accelerating project deployment, with landmark agreements signed for multi-gigawatt solar installations across the Kingdom's regions.

The exceptional solar irradiance levels across Saudi Arabia's vast desert landscapes, combined with declining technology costs, are making solar energy the most cost-competitive power generation option. Saudi Arabia has achieved record-low levelized costs of electricity for solar power globally, with some projects delivering electricity at unprecedented rates. This economic advantage, coupled with rapidly growing electricity demand driven by population growth, urbanization, industrial expansion, and intensive cooling requirements, is creating massive opportunities for solar energy deployment. The construction boom accompanying Vision 2030 mega-projects including NEOM, The Red Sea Project, and Qiddiya entertainment city requires substantial clean energy infrastructure, further accelerating solar market growth across residential, commercial, industrial, and utility-scale segments nationwide.

Saudi Arabia Solar Energy Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

• ACWA Power Company
• Alfanar Group
• EDF Renewables
• ENGIE Solutions
• Masdar (Abu Dhabi Future Energy Company)
• Saudi Electricity Company

Access the Latest 2026 Data & Forecasts: https://www.imarcgroup.com/checkout?id=14033&method=1315

Recent News and Developments in Saudi Arabia Solar Energy Market

• February 2025: The SunRise Arabia Clean Energy Conference showcased Saudi Arabia's solar market maturation, with the Kingdom adding over gigawatts of renewable capacity by end of 2024, bringing total operational capacity to gigawatts, alongside announcements of large-scale battery energy storage systems and smart grid integration projects supporting Vision 2030 renewable energy targets.
• March 2025: EDF Renewables in collaboration with Saudi Electricity Company signed a year power purchase agreement for the megawatt Samtah solar project, while expanding its renewable portfolio in the Kingdom to include multiple gigawatt-scale developments across solar and wind technologies supporting national decarbonization objectives.
• April 2025: The Ministry of Energy accelerated project approvals for Round 6 of the National Renewable Energy Program, with multiple international consortiums submitting competitive bids for solar installations totaling several gigawatts across Northern, Central, and Western regions, demonstrating continued strong investor confidence in Saudi Arabia's renewable energy sector.

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