Saudi Arabia Solar Energy Market at Electrifying CAGR to Surpass USD 77.3 Billion by 2031

Published | 21 April 2025

Saudi Arabia Solar Energy Market is booming primarily due to the government’s supportive initiatives, ambitious Vision 2030 goals, abundant sunlight, rising energy demand, and the adoption of technological advancements.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia Solar Energy Market size by value at USD 6.81 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Saudi Arabia Solar Energy Market size to boom at a robust CAGR of 41.5% reaching a value of USD 77.31 billion by 2031. The Solar Energy Market in Saudi Arabia is driven by several key factors. Firstly, the country’s Vision 2030 initiative aims to diversify the energy mix and reduce dependence on oil, promoting renewable energy adoption. Abundant solar irradiance, with over 2,200 kWh/m² of annual solar potential, makes Saudi Arabia ideal for solar projects. Government-backed programs like the National Renewable Energy Program (NREP) and significant investments from the Public Investment Fund (PIF) are accelerating solar infrastructure development. Additionally, the decline in cost of photovoltaic (PV) technology enhances project feasibility. Environmental concerns and the need to meet international climate commitments also encourage clean energy transition. An increasingly high demand for electricity from industrial and residential sectors further fuels the need for sustainable and cost-effective solar energy solutions across the kingdom.

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Opportunity – Expansion of Utility-Scale Solar Projects

A major growth driver of Saudi Arabia Solar Energy Market is the rapid expansion of utility-scale solar projects. The Kingdom has committed to generating 50% of its electricity from renewable sources by 2030 under the Saudi Vision 2030 initiative. Projects such as the Sudair Solar Power Plant (1.5 GW capacity), one of the largest in the country, and the planned 2 GW Al Shuaibah project reflect this commitment. The government, through the Renewable Energy Project Development Office (REPDO), is actively tendering new large-scale projects, attracting global investors. These developments enhance energy capacity and also reduce dependence on fossil fuels, making utility-scale projects a cornerstone of Saudi Arabia’s renewable energy transition and solar market growth.

Monocrystalline Segment Dominates Saudi Arabia Solar Energy Market ​

The Monocrystalline segment holds the largest share in Saudi Arabia Solar Energy Market. This dominance is attributed to its superior efficiency rates, which typically range between 17% and 22%, and its excellent performance under high-temperature conditions—crucial for Saudi Arabia's desert climate. Monocrystalline panels also have a longer operational lifespan, often exceeding 25 years, making them ideal for large-scale solar projects. The Saudi government's focus on expanding renewable energy capacity under Vision 2030 has further accelerated the adoption of this technology. Major solar initiatives, including NEOM and Sakaka PV IPP, have predominantly employed monocrystalline modules, reinforcing their market leadership.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Solar Energy Market

Escalating geopolitical tensions could significantly impact the growth of Saudi Arabia Solar Energy Market by disrupting supply chains, increasing the cost of imported solar components, and delaying project timelines. Saudi Arabia relies heavily on imports of photovoltaic (PV) modules and raw materials, particularly from countries like China. Any conflict or trade restrictions could lead to shortages or price volatility. Additionally, investor confidence may be affected, slowing down foreign direct investment in renewable energy infrastructure. Political instability in the broader Middle East region may also divert government focus and funding away from solar energy initiatives. Despite these challenges, Saudi Arabia’s commitment to diversifying its energy mix under Vision 2030 helps mitigate some risks, as the nation continues to push for energy independence through domestic manufacturing and strategic partnerships.

Competitive Landscape

Saudi Arabia Solar Energy Market is highly fragmented, with numerous players serving the market. Major companies dominating the market include ACWA Power, Saudi Electricity Company (SEC), First Solar Inc., Masdar (Abu Dhabi Future Energy Company), Canadian Solar Inc., JinkoSolar Holding Co., Ltd, Trina Solar Limited, LONGi Green Energy Technology Co., Ltd, JA Solar Technology Co., Ltd, SunPower Corporation, and EDF Renewables. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in Saudi Arabia Solar Energy Market.

Don’t miss the business opportunity in Saudi Arabia Solar Energy Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and Saudi Arabia Solar Energy Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Solar Energy Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

Scope of the Report

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