Saudi Arabia Solar Energy Storage Market Overview

Market Size in 2024: USD 160.43 Million

Market Forecast in 2033: USD 728.01 Million

Market Growth Rate 2025-2033: 17.10%

According to IMARC Group's latest research publication, "Saudi Arabia Solar Energy Storage Market Size, Share, Trends and Forecast by Type, Installation, and Region, 2025-2033", the Saudi Arabia solar energy storage market size reached USD 160.43 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 728.01 Million by 2033, exhibiting a growth rate (CAGR) of 17.10% during 2025-2033. 

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

• AI-driven forecasting tools help Saudi utilities predict solar generation and demand with high accuracy, improving battery dispatch and supporting the Kingdom’s 22 GWh grid‑scale storage vision.​
• Smart BESS controllers at giga-projects like NEOM use machine-learning algorithms to optimize charge–discharge cycles, extending battery life and enhancing round‑trip efficiency for 300+ megawatt-hour systems.​
• Saudi Electricity Company’s collaboration with BYD uses AI-enabled EMS platforms across a 2 GWh storage rollout, dynamically shifting stored energy between five grid nodes to cut peak reliance on gas turbines.​
• AI-powered grid automation now covers roughly 32% of Saudi distribution networks, with plans to reach 40%, making it easier to integrate distributed solar-plus-storage systems without destabilizing voltage or frequency.​
• Researchers are developing AI models that co-optimize PV and battery sizing for Saudi conditions, identifying configurations that boost plant profitability while maximizing evening supply from stored solar energy.

Saudi Arabia Solar Energy Storage Market Trends & Drivers:

One of the strongest forces pushing Saudi Arabia’s solar energy storage market is the scale and speed of the Kingdom’s solar rollout, which makes storage almost non‑negotiable for grid stability. Vision 2030 targets 50% of national electricity capacity from renewables, underpinned by roughly 40 gigawatts of solar projects and more than 700 billion riyals in planned clean-energy investments. Recent auction rounds alone include over 3.7 gigawatts of new solar IPPs such as Al‑Sadawi, Al‑Massaa, Al‑Hanakiya, and Rabigh, which collectively demand hundreds of megawatt‑hours of storage to smooth intermittency, provide ramping support, and keep frequency stable when clouds or evening peaks hit.​

A second major growth engine is the rapid deployment of large-scale battery energy storage systems to power giga‑projects, industrial clusters, and smart cities that want round‑the‑clock green power. NEOM features one of the world’s largest integrated solar‑plus‑BESS setups, with lithium‑ion systems providing roughly 300 megawatt/600 megawatt‑hours of storage capacity to keep critical loads, mobility, and digital infrastructure running on renewables even at night. Sector trackers estimate that installed battery storage has already crossed 300 megawatt‑hours, with a national roadmap pointing toward 22 gigawatt‑hours of capacity within a few years and up to 48 gigawatt‑hours longer term. This opens the door for utility‑scale batteries, long‑duration chemistries such as flow batteries, and hybrid thermal‑plus‑battery solutions co‑located with big solar parks and industrial off‑takers.​

The third key trend is how storage is being woven into wider decarbonization moves such as green hydrogen, flexible grids, and distributed solar for commercial customers. Projects like NEOM’s green hydrogen complex rely on gigawatt‑scale renewables plus battery storage to deliver stable, low‑carbon electricity to electrolyzers, supporting Saudi ambitions to become a major global exporter of green fuels. At the same time, the Saudi Electricity Company’s smart grid initiatives and climate pledges to reach net‑zero emissions by 2060 position BESS as a core tool for peak shaving, black‑start capability, and integrating rooftop or behind‑the‑meter solar into distribution networks. For large malls, logistics hubs, and data centers, this combination of falling battery prices, supportive regulation, and green-finance incentives makes investing in solar‑plus‑storage a practical way to cut bills, improve reliability, and hit corporate ESG targets.

Saudi Arabia Solar Energy Storage Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Lead Acid
• Lithium Ion
• Flow Battery
• Others

Installation Insights:

• On grid
• Off grid

Regional Analysis:

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

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Solar Energy Storage Market

• September 2025: Saudi Arabia breaks battery storage cost barriers, achieving $73 per kWh milestone, significantly reducing expenses for large-scale solar energy projects.
• September 2025: Mercom reports Saudi Arabia invites bids for 5.3 GW renewable projects emphasizing innovative solar storage solutions to boost clean energy adoption.
• August 2025: National Renewable Energy Program launches AI-driven battery management systems, increasing grid stability and expanding storage capacity over 26 GWh.

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