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Forecast Period
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2024-2028
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Market Size (2022)
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USD 968.24 Million
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CAGR (2023-2028)
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17.6%
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Fastest Growing Segment
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crystalline silicon
PV
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Largest Market
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Al Riyadh Region
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Market Overview
The Saudi Arabia rooftop solar market
achieved a valuation of USD 968.24 million in 2022 and is poised for
substantial growth throughout the forecast period, with a projected Compound
Annual Growth Rate (CAGR) of 17.6% until 2028. The market's expansion is
primarily driven by government incentives, renewable energy targets, and the
country's abundant sunlight, all of which contribute to the rapid development
of the Saudi Arabia rooftop solar sector. Underpinning these drivers is the
overarching framework of Vision 2030, which emphasizes energy diversification
and sustainability. This strategic vision, coupled with concrete government
incentives, fosters an environment conducive to solar investment, rendering
rooftop installations financially appealing. The bountiful solar resources
inherent to Saudi Arabia's geography further bolster this momentum, enabling
maximum solar energy production. The convergence of these drivers amplifies the
adoption of sustainable energy practices, economic advancement, and a reduced
reliance on conventional fossil fuels.
Key Market Drivers
Renewable Energy Goals Driving Market
Growth: Renewable energy goals are the pivotal driving force behind the
burgeoning Saudi Arabia rooftop solar market. As Saudi Arabia embarks on its
transformative Vision 2030 plan, its commitment to renewable energy becomes a
rallying call for sustainable energy endeavors. This unequivocal mandate acts
as a catalyst for a significant uptick in rooftop solar installations. By
steadfastly pursuing these renewable energy targets, Saudi Arabia signals its
intent to move away from traditional fossil fuels and embrace cleaner, more
sustainable energy sources. This commitment aligns with global climate change
mitigation efforts while simultaneously laying the foundation for economic
diversification and energy autonomy.
The influence of renewable energy goals
resonates across the market landscape. Investors are emboldened by unwavering
governmental support, recognizing the stability and long-term viability of
rooftop solar projects. Regulatory frameworks are tailored to incentivize
adoption, streamlining processes and incorporating net metering and grid
integration standards that facilitate smooth rooftop solar implementation. The
pursuit of these ambitious goals fuels innovation, propelling advancements in
solar technology, energy storage solutions, and smart grid integration. This
technological evolution enhances the economic appeal of solar energy to both
businesses and individuals. Critically, the pursuit of renewable energy goals
fosters job creation across the solar spectrum, contributing to skilled
installation professionals and pioneering researchers driving solar innovation.
Furthermore, Saudi Arabia's embrace of
renewable energy enhances energy security by reducing reliance on fossil fuel
imports. This shift toward domestic energy production diminishes
vulnerabilities to supply disruptions and price fluctuations, positioning the
country as a global leader in sustainable energy practices. In essence, Saudi
Arabia's commitment to renewable energy goals is the linchpin of its rooftop
solar market expansion. By forging a clear path toward a greener future, the
nation propels economic growth, energy security, and innovation, leaving a
lasting legacy of environmental stewardship.
Government Incentives Propelling Market
Growth: Government incentives are poised to play a pivotal role in propelling
the Saudi Arabia rooftop solar market into a new era of growth and
sustainability. As the country seeks to diversify its energy sources and reduce
its carbon footprint, these incentives serve as a potent catalyst for
widespread adoption of solar installations. Anchored in a strategic focus on
incentivizing renewable energy, the Saudi government demonstrates its
commitment to nurturing a thriving solar ecosystem. Financial incentives,
including subsidies, tax advantages, and favorable financing options,
substantially lower entry barriers for residential and commercial rooftop solar
projects. These measures not only alleviate initial investment costs but also
render solar energy an economically viable choice for a broader spectrum of
consumers.
The appeal of government incentives goes
beyond financial gains alone. They provide confidence and reassurance that
authorities are actively fostering a flourishing solar market. This assurance
encourages investors to allocate resources, secure in the knowledge that the
regulatory framework supports their endeavors. Moreover, these incentives act
as a catalyst for job creation, as the expansion of the rooftop solar market
necessitates a skilled workforce for installation, maintenance, and technical
support. This job growth stimulates local economies and solidifies Saudi
Arabia's position as a leader in renewable energy. The effect of government
incentives permeates society, triggering heightened public awareness and
engagement. As individuals observe their peers embracing solar solutions, a
sense of collective environmental responsibility takes root. This ripple
effect, spurred by incentives, accelerates the transition to clean energy
practices.
Ultimately, government incentives form
the cornerstone of Saudi Arabia's rooftop solar market growth. By cultivating a
supportive environment for solar adoption, the government propels economic
gains, job creation, and a trajectory towards a sustainable energy future. As
these incentives continue to catalyze progress, Saudi Arabia stands poised to
become an exemplar for regions aspiring to harness solar energy on their
rooftops.
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Key Market Challenges
Shortage of Technical Expertise: The
growth of the Saudi Arabia rooftop solar market is hampered by a shortage of
technical expertise in the field of solar energy. While the nation's renewable
energy goals and abundant sunlight create a conducive environment for solar
adoption, the lack of a skilled workforce presents a significant challenge. The
successful implementation and operation of rooftop solar installations
necessitate specialized knowledge in areas such as system design, engineering,
installation, and maintenance. However, the scarcity of professionals with
hands-on experience and training in these domains can lead to delays,
suboptimal system performance, and increased costs. This deficiency in
technical expertise affects both residential and commercial segments.
Residential consumers may struggle to find qualified professionals for
effective solar system installation and maintenance. Similarly, businesses
seeking to integrate solar solutions into their operations may encounter
difficulties in sourcing skilled personnel.
Addressing this challenge requires
investments in educational and training programs that focus on solar technology
and installation practices. Collaborations between educational institutions,
industry associations, and government agencies can foster the development of a
skilled workforce. Additionally, incentivizing professionals to enter the solar
energy sector and promoting knowledge sharing among industry players can
contribute to building the necessary technical expertise. By nurturing a
skilled workforce, Saudi Arabia can mitigate the constraint posed by the
shortage of technical expertise, thereby accelerating the growth of its rooftop
solar market. This, in turn, will facilitate the nation's transition towards a
sustainable and diversified energy landscape in alignment with its long-term
vision.
Energy Storage Infrastructure: The
potential of the Saudi Arabia rooftop solar market is limited by the
insufficient energy storage infrastructure. While the nation boasts abundant
sunlight, the intermittent nature of solar energy generation necessitates
effective energy storage solutions. The current lack of robust energy storage
systems presents challenges in harnessing and utilizing solar power
efficiently. Energy storage plays a pivotal role in bridging the gap between
peak solar energy production and varying demand patterns. Without adequate
storage mechanisms, surplus energy generated during the day cannot be
efficiently stored for use during nighttime or cloudy periods, leading to
underutilization of solar potential and reliance on conventional power sources.
The deficiency in energy storage
infrastructure hampers the scalability of rooftop solar installations,
especially when excess energy cannot be efficiently stored and dispatched when
needed. This constraint affects grid stability and limits the ability of solar
systems to contribute to consistent and reliable power supply. To overcome this
challenge, investments and initiatives are required to develop and deploy
energy storage technologies, such as batteries and other advanced storage
solutions. Collaborations between research institutions, government entities,
and private sector stakeholders can facilitate the adoption of energy storage
solutions tailored to Saudi Arabia's energy landscape. By addressing the energy
storage infrastructure constraint, Saudi Arabia can unlock the full potential
of its rooftop solar market. A robust storage ecosystem will enable greater
energy independence, enhanced grid stability, and optimized utilization of
solar resources, aligning with the country's renewable energy goals and
fostering a more sustainable energy future.
Key Market Trends
Growth in the Commercial and Industrial
Segment: The trajectory of the Saudi Arabia rooftop solar market is
unmistakably propelled by the burgeoning commercial and industrial
sectors. As businesses across diverse industries seek avenues to optimize
operations and enhance sustainability, rooftop solar installations emerge as a
transformative solution. The prospect of reduced energy costs serves as a
pivotal driver, empowering businesses to harness solar energy to power their
operations, thereby reducing reliance on traditional grid electricity and
mitigating escalating energy expenses. This cost-saving potential assumes even
greater significance in energy-intensive sectors, such as manufacturing and
agriculture, where rooftop spaces can be effectively harnessed for significant
solar power generation. Additionally, the momentum of corporate social
responsibility (CSR) initiatives plays a pivotal role. Businesses prioritize
green practices to enhance their image and fulfill environmental commitments.
Rooftop solar installations exemplify such initiatives, symbolizing a proactive
stance towards carbon footprint reduction and adoption of clean energy
practices. Government incentives tailored to the commercial and industrial
sectors provide further impetus. Tax benefits, financing incentives, and
supportive policies amplify the attractiveness of solar solutions.
As commercial and industrial growth
gains momentum, the Saudi Arabian rooftop solar market is poised for
substantial expansion. This trend not only reflects astute business acumen in
harnessing solar energy but also embodies a larger commitment to a sustainable
and diversified energy landscape. In tandem, businesses advance their own
prosperity while catalyzing the nation's trajectory towards a greener future.
Partnerships and Investments: The
trajectory of the Saudi Arabia rooftop solar market is distinctively shaped by
strategic partnerships and targeted investments. As the nation progresses
fervently towards its renewable energy goals, collaborations between local and
international entities assume a pivotal role in driving progress. These
partnerships amalgamate diverse expertise, technological innovation, and
financial support to collectively propel the rooftop solar sector forward.
International renewable energy firms recognize the immense potential of the
Saudi Arabian market and are forging alliances with local counterparts to
capitalize on this opportunity. Such collaborations infuse valuable knowledge
and cutting-edge technology into the market while also amplifying global best
practices in solar energy implementation.
Simultaneously, investments directed
towards the rooftop solar domain catalyze transformative growth. Financial
backing from private equity, venture capital, and governmental sources fosters
innovation, research, and scalability. These investments accelerate the
development of solar technology, enhance infrastructure, and drive down costs,
making rooftop solar installations increasingly accessible and economically
viable. The synergy between partnerships and investments in the Saudi Arabia
rooftop solar market is pivotal. These elements not only drive economic
expansion but also underscore the nation's dedication to sustainable energy
practices. As key stakeholders collaborate and channel resources into this
dynamic sector, Saudi Arabia emerges as a model for other regions aspiring to
harness the power of solar energy on their rooftops.
Segmental Insights
Technology Type Insights: The
crystalline silicon PV segment has established its dominance in the Saudi
Arabia Rooftop Solar market in 2022 and is projected to maintain this position
throughout the forecast period. Crystalline panels are the most common type of
solar panels used in residential and commercial applications due to their
higher efficiency and reliability.
Grid-type Insights: The connected
segment has established its dominance in the Saudi Arabia Rooftop Solar market
in 2022. In the Saudi Arabia rooftop solar market, the grid-connected segment
is poised to dominate. Government incentives, feed-in tariffs, and reliable
energy access make grid-connected installations attractive. They enable surplus
energy injection into the grid, offering economic benefits for users. With a
focus on energy security and grid stability, grid-connected systems align with
Saudi Arabia's energy goals.
End-User Type Insights: The commercial
and industrial segment has emerged as the dominant segment in the Saudi Arabia
Rooftop Solar market. Due to being one of the largest energy consumers, the
commercial and industrial sector typically pays higher electricity expenses.
The industry has the most advantageous use profiles and stands to gain from the
installation of rooftop solar PV systems across substantial roof areas.
Regional Insights: The Al Riyadh region
has established itself as the leader in the Saudi Arabia Rooftop Solar market
with a significant revenue share in 2022. The Al Riyadh region leads the Saudi
Arabia Rooftop Solar market due to its economic prominence, high population
density, and strategic government initiatives. With a dense urban landscape,
ample rooftop spaces, and significant energy demand, Al Riyadh provides an
ideal setting for widespread solar adoption. Government incentives and policies
tailored to the region further encourage businesses and residents to invest in
rooftop solar installations. This, coupled with corporate engagement,
educational institutions, and increased public awareness, solidifies Al
Riyadh's position as a frontrunner in driving the growth and success of the
Saudi Arabian rooftop solar market.
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Recent Developments
- The 400 MW (DC) Rabigh Solar PV IPP project in Saudi Arabia
received the LONGia module supply contract from China Energy Engineering Group
and Guangdong Power Engineering Company (GPEC) in June 2022. This solar PV
project is currently under development, and LONGiHi-MO 5(72C) solar modules are
anticipated to be installed. The project's location is in Rabigh Industrial
City, in Saudi Arabia's western Makkah Province, around 150 km west of Jeddah.
- A contract was given to China's Jinko Power in March 2022 as
part of the third round of Saudi Arabia's National Renewable Energy Plan (NREP)
to create the 300MW Saad photovoltaic (PV) solar project. Jinko Power and Jinko
Power Dhafra Holding inked a 25-year power purchase agreement (PPA) with Saudi
Power Procurement Company as a part of the competitive tendering process
(SPPC). For the project, the consortium provided a price of SAR 5.56255/kWh.
Key Market Players
- ACWA Power Company
- Alfanar Group
- Abu Dhabi Future Energy Company (Masdar)
- EDF Renewables
- Saudi Electricity Company
- Engie SA
- JinkoSolar Holding Co. Ltd
- Enel SpA
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By Technology
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By Grid-type
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By End-use
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By Region
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Thin Film
•
Crystalline Silicon
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•
Grid Connected
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Off-grid
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•
Residential
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Commercial
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Industrial
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•
Al Riyadh
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Jeddah
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Eastern Province
•
Rest of Saudi Arabia
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Report Scope:
In this report, the Saudi Arabia Rooftop Solar market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Saudi Arabia Rooftop Solar market, By Technology:
o
Thin Film
o
Crystalline Silicon
·
Saudi Arabia Rooftop Solar market, By Grid-type:
o Grid Connected
o Off-grid
·
Saudi Arabia Rooftop Solar market, By End-use:
o Residential
o Commercial
o Industrial
·
Saudi Arabia Rooftop Solar market, By Region:
o Al Riyadh
o Jeddah
o Eastern Province
o Rest of Saudi Arabia
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Rooftop Solar
market.
Available Customizations:
Saudi Arabia Rooftop Solar market report with the given market data,
TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Saudi Arabia Rooftop Solar market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]