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Report Description

Report Description

Forecast Period

2026-2030

Market Size (2024)

USD 350 Million

Market Size (2030)

USD 929.37 Million

CAGR (2025-2030)

17.5%

Fastest Growing Segment

On-Grid

Largest Market

Riyadh

Market Overview

Saudi Arabia Solar Energy Panel Market was valued at USD 350 million in 2024 and is expected to reach at USD 929.37 Million in 2030 and project robust growth in the forecast period with a CAGR of 17.5% through 2030. The Saudi Arabia solar energy panel market is experiencing substantial growth, propelled by the nation's strategic shift towards renewable energy sources. Fueled by the Vision 2030 initiative, which aims to diversify the economy and reduce reliance on oil, Saudi Arabia has committed to increasing the share of renewable energy in its power generation mix. The Renewable Energy Project Development Office (REPDO) has been instrumental in driving this transition, overseeing competitive bidding processes for utility-scale solar projects. The kingdom's vast solar potential, characterized by abundant sunlight, coupled with declining solar panel costs globally, has further incentivized investments in the sector. Noteworthy projects like the Sakaka and Sudair solar plants underscore Saudi Arabia's commitment to fostering a sustainable energy landscape, attracting both domestic and international players to participate in the burgeoning solar market. As the nation strives to meet its renewable energy targets, the Saudi Arabia solar energy panel market is poised for continued expansion and technological advancements.

Key Market Drivers

Vision 2030 and Renewable Energy Ambitions

Saudi Arabia's Vision 2030 stands as a transformative force propelling the surge in the country's solar energy panel market. Crafted with the intent to diversify the economy and diminish reliance on traditional oil-based revenue, Vision 2030 charts an ambitious course for elevating the proportion of renewable energy in the nation's power generation portfolio. This forward-looking vision places sustainability and environmental stewardship at its core, instigating a dedicated push toward the harnessing of solar power. Within this overarching framework, specific targets have been meticulously outlined to augment the capacity of renewable energy sources. As a strategic response to this vision, the Saudi Arabian government has introduced a suite of initiatives and regulatory frameworks that collectively cultivate an environment conducive to the robust expansion of the solar energy sector. These measures are instrumental in attracting both domestic and international investments, fostering a climate ripe for innovation in solar technologies. The alignment of Vision 2030 with sustainable energy goals not only underscores Saudi Arabia's commitment to environmental responsibility but also positions the country as a global player in the burgeoning field of renewable energy, contributing significantly to the global shift toward cleaner and more sustainable power sources. The multifaceted approach of Vision 2030, encompassing economic diversification, renewable energy integration, and regulatory facilitation, marks a pivotal chapter in Saudi Arabia's trajectory toward a more resilient, sustainable, and forward-looking energy landscape, with solar power playing a central role in this transformative journey. Saudi Arabia has set an ambitious target to generate 50% of its energy from renewable sources by 2030, with 10% of the energy mix coming from solar.

Abundant Solar Resources

The strategic geographical positioning of Saudi Arabia emerges as a formidable advantage for the flourishing solar energy production sector, characterized by a bountiful supply of sunlight that graces the kingdom throughout the entire year. The expansive deserts that define Saudi Arabia's topography create an environment conducive to optimal solar panel installations, facilitating the generation of substantial energy levels. The unparalleled abundance of solar resources not only aligns with the nation's commitment to sustainable energy practices but also profoundly enhances the economic viability of solar projects, rendering them a compelling and pragmatic choice for power generation initiatives. This synergy between the natural resource endowment and the evolving landscape of solar technology is particularly noteworthy as the global cost of solar panels continues its downward trajectory. The confluence of these factors firmly establishes Saudi Arabia as a pivotal player in the solar energy market, poised to attract discerning investors seeking both economic viability and sustainable energy solutions. As technological innovations further augment the efficiency of solar panels and decrease associated costs, the kingdom finds itself at the forefront of the solar energy revolution, fostering an environment that not only capitalizes on abundant sunlight but also propels the expansion of solar capacity, thereby solidifying Saudi Arabia's pivotal role in shaping the future of the global solar energy landscape. Saudi Arabia aims to invest USD 50 billion in renewable energy projects by 2030, focusing heavily on solar energy due to the country’s ideal sun exposure.

Government Incentives and Subsidies

To stimulate the adoption of solar energy, the Saudi Arabian government has implemented various incentives and subsidies. These initiatives include financial support, tax incentives, and favorable regulatory frameworks aimed at lowering the barriers to entry for investors and businesses in the solar energy sector. By providing financial incentives, the government encourages private and public entities to invest in solar projects, driving the growth of the solar energy panel market. These supportive measures not only make solar projects financially attractive but also contribute to the overall sustainability goals outlined in Vision 2030, reinforcing the government's commitment to a greener and more diversified energy landscape.  Saudi Arabia plans to develop 50 gigawatts (GW) of renewable energy capacity by 2030. Of this, 40 GW will come from solar power.

International Collaboration and Partnerships

Saudi Arabia's aspirations in the realm of solar energy receive a substantial impetus through active engagement in international collaboration and strategic partnerships within the renewable energy sector. The nation has proactively forged alliances with global stakeholders, fostering a collaborative environment conducive to joint efforts in research, development, and the transfer of cutting-edge technologies. By actively seeking collaborations with international companies, Saudi Arabia taps into a reservoir of expertise and innovation, catalyzing the rapid advancement of solar technologies within its borders. These partnerships extend beyond mere technological gains, contributing significantly to the exchange of knowledge, fostering skill development, and establishing best practices within the Saudi Arabian solar energy panel market. This collective endeavor positions Saudi Arabia as a dynamic hub for pioneering solar solutions, leveraging the synergy between indigenous initiatives and global collaborations to enhance both the competitiveness and sustainability of its solar energy sector. This collaborative approach not only propels the kingdom's growth on the international stage but also ensures a continuous trajectory of advancements, solidifying Saudi Arabia's standing as a prominent player in the global landscape of solar energy innovation and adoption. As of 2024, Saudi Arabia has launched major projects like the Al-Faisaliah Solar Park, a 600 MW solar facility, and the Sudair Solar Plant (2.6 GW) as part of the plan to meet these energy targets.

Saudi Arabia Solar Energy Panel Market

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Key Market Challenges

Intermittency and Grid Integration Challenges

One significant challenge facing the Saudi Arabia solar energy panel market is the intermittency of solar power generation. Solar energy production is contingent upon sunlight availability, which varies throughout the day and is subject to seasonal changes. This intermittency poses challenges for grid stability and reliability, as traditional power grids are designed for consistent and predictable energy generation. Integrating intermittent solar power into the grid requires advanced technologies and infrastructure for energy storage and demand-response management. Addressing these challenges is crucial to ensure a smooth transition to a renewable energy-dominant grid and to maintain a reliable power supply for consumers, industries, and other stakeholders.

Water Scarcity and the Water-Intensive Nature of Solar Technologies

Another critical challenge for the Saudi Arabia solar energy panel market is the country's scarcity of water resources and the water-intensive nature of some solar technologies. Traditional solar panel manufacturing processes often require significant water usage, and the arid climate of Saudi Arabia makes water conservation a top priority. Balancing the water requirements of solar technologies with the need for sustainable water management poses a complex challenge. Research and development efforts focused on water-efficient solar manufacturing processes and the adoption of water-saving technologies are essential to mitigate this challenge and ensure the environmentally responsible growth of the solar energy sector in the region.

Land Use and Environmental Impact

The expansion of the Saudi Arabia solar energy panel market brings with it concerns about land use and its environmental impact. Large-scale solar installations require substantial land area, potentially leading to competition with other land uses, such as agriculture or natural habitats. Striking a balance between meeting renewable energy targets and preserving valuable land resources is a delicate challenge. Additionally, the environmental impact of manufacturing, installing, and decommissioning solar panels requires careful consideration. Implementing sustainable practices, such as using recycled materials, minimizing land disruption, and adopting eco-friendly disposal methods, is imperative to ensure the long-term environmental viability of solar energy in Saudi Arabia.

Technological and Infrastructure Readiness

The rapid growth of the Saudi Arabia solar energy panel market also poses challenges related to technological readiness and infrastructure development. The deployment of advanced solar technologies, such as concentrated solar power (CSP) or innovative photovoltaic systems, requires a skilled workforce and a robust supply chain. Ensuring that the workforce is adequately trained and that the necessary infrastructure, such as transmission lines and energy storage facilities, is in place is crucial for the successful integration of large-scale solar projects. Overcoming these challenges demands strategic investments in research and development, education, and infrastructure to build a resilient and technologically advanced solar energy ecosystem in Saudi Arabia.

Key Market Trends

Growing Investment in Utility-Scale Solar Projects

One notable trend in the Saudi Arabia solar energy panel market is the increasing investment in utility-scale solar projects. As the country strives to diversify its energy mix and reduce reliance on fossil fuels, there has been a surge in large-scale solar initiatives. Projects like the Sakaka and Sudair solar plants exemplify this trend, showcasing the government's commitment to harnessing solar power for utility-scale electricity generation. The appeal of utility-scale projects lies in their capacity to significantly contribute to the national power grid, providing a stable and substantial source of renewable energy. This trend not only aligns with Saudi Arabia's sustainable development goals but also attracts significant domestic and international investments, fostering the growth of the solar energy panel market in the region.

Shift Towards Decentralized Solar Installations

A noticeable shift in the Saudi Arabia solar energy panel market is the increasing adoption of decentralized solar installations. While utility-scale projects play a pivotal role, there is a growing trend among residential, commercial, and industrial consumers to invest in rooftop solar panels and smaller-scale distributed generation systems. This shift towards decentralized installations is driven by factors such as the desire for energy independence, reduced reliance on the centralized grid, and the potential for cost savings through on-site power generation. Government incentives and policies supporting distributed solar generation further fuel this trend, encouraging a more diversified and resilient solar energy landscape in Saudi Arabia.

Technological Advancements and Innovation

The Saudi Arabia solar energy panel market is witnessing a trend of rapid technological advancements and innovation. As the demand for more efficient and cost-effective solar solutions increases, companies are investing heavily in research and development. This trend encompasses improvements in solar panel efficiency, energy storage technologies, and innovative manufacturing processes. The integration of smart technologies and digital solutions, such as advanced monitoring and control systems, is also becoming prevalent. This focus on innovation not only enhances the overall performance of solar energy systems but also positions Saudi Arabia as a hub for cutting-edge solar technologies, attracting both domestic and international players to contribute to the market's evolution.

Emergence of Green Financing and Sustainable Investment

An emerging trend in the Saudi Arabia solar energy panel market is the growing emphasis on green financing and sustainable investment. Investors, including both financial institutions and private entities, are increasingly prioritizing environmentally responsible projects, aligning with global sustainability goals. This trend has led to the development of financial mechanisms that specifically support renewable energy initiatives, making it easier for solar projects to secure funding. The incorporation of environmental, social, and governance (ESG) considerations into investment decisions reflects a broader commitment to sustainable development. As green financing gains momentum, it provides a robust foundation for the continued expansion of the solar energy panel market in Saudi Arabia.

International Collaboration for Research and Development

A noteworthy trend in the Saudi Arabia solar energy panel market is the increasing emphasis on international collaboration for research and development (R&D). Recognizing the need for expertise and technological advancements, the country is actively engaging with global partners, research institutions, and solar technology companies. Collaborative initiatives aim to accelerate the pace of innovation, improve the efficiency of solar technologies, and address specific challenges faced by the Saudi Arabian solar energy sector. This trend not only fosters knowledge exchange but also contributes to the development of tailored solutions that suit the unique environmental conditions of the region. The synergy between local initiatives and international expertise positions Saudi Arabia at the forefront of solar technology innovation, ensuring the sustainability and competitiveness of its solar energy panel market on the global stage.

Segmental Insights

Technology Insights

The Saudi Arabia solar energy panel market was predominantly dominated by the Solar PV segment, and this dominance is expected to persist throughout the forecast period. Solar PV technology, which directly converts sunlight into electricity using semiconductor materials, has been the primary driver of the kingdom's solar energy initiatives. The dominance of Solar PV can be attributed to several factors, including its cost-effectiveness, scalability, and versatility. The declining cost of PV modules globally, coupled with advancements in technology, has made solar PV installations increasingly economically viable, attracting significant investments in large-scale utility projects as well as decentralized installations. Moreover, the adaptability of solar PV systems to various scales and applications, ranging from residential rooftops to utility-scale power plants, aligns with the diverse energy needs outlined in Saudi Arabia's Vision 2030 initiative. While Concentrated Solar Power (CSP) technology, which uses mirrors or lenses to concentrate sunlight onto a small area to generate heat for power generation, has its merits, the dominance of Solar PV is expected to persist due to its efficiency, lower capital costs, and rapid deployment capabilities. The ongoing commitment to large-scale solar projects and the continuous advancements in Solar PV technology position it as the primary driving force in the Saudi Arabian solar energy panel market for the foreseeable future.

Saudi Arabia Solar Energy Panel Market

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Regional Insights

The Riyadh region emerged as the dominant force in the Saudi Arabia solar energy panel market, and this dominance is anticipated to persist during the forecast period. Riyadh, the capital and largest city of Saudi Arabia, has been a focal point for renewable energy initiatives and large-scale solar projects. The region's dominance can be attributed to several factors, including its central role in government and administrative functions, making it a strategic hub for key decisions and policy implementations related to renewable energy. Riyadh's commitment to Vision 2030 and its ambitious renewable energy targets have spurred significant investments in solar energy projects. The region has witnessed the development of utility-scale solar installations and commercial applications, contributing to its leading position in the solar energy market. While other regions, such as Makkah, Madinah, Jeddah, Tabuk, and the Eastern Province, also play essential roles in the broader context of Saudi Arabia's renewable energy landscape, Riyadh's central influence and strategic focus on sustainable development position it to maintain its dominance in the solar energy panel market during the forecast period. The government's continued commitment to renewable energy goals and the implementation of projects in the Riyadh region are expected to sustain its leading position in driving the growth of the solar energy sector in Saudi Arabia.

Recent Developments 

  • In September 2024, First Solar has inaugurated a $1.1 billion manufacturing facility in Alabama, significantly boosting its American solar manufacturing capacity by 3.5 GW. This new plant underscores First Solar's commitment to advancing clean energy solutions and reducing the reliance on overseas production. The vertically integrated facility will manufacture solar panels using sustainable, American-made components, strengthening the U.S. solar supply chain. This expansion aligns with the growing demand for renewable energy and supports the nation’s energy transition and job creation goals.
  • In July 2024, First Solar has officially commissioned the Western Hemisphere's largest solar research and development (R&D) center, aimed at advancing solar technology innovation. The state-of-the-art facility will focus on improving solar panel efficiency, durability, and sustainability, reinforcing First Solar’s leadership in the renewable energy sector. This R&D center is pivotal in driving the company’s goal of accelerating the transition to clean energy, enabling the development of next-generation solar solutions to meet the growing global demand for renewable power.
  • In May 2024, FRV has entered the Nordic market with plans to develop 600 MW of photovoltaic projects in Finland. This move marks a significant expansion of FRV's renewable energy portfolio, capitalizing on Finland’s growing demand for sustainable energy solutions. The company aims to contribute to Finland's clean energy transition, leveraging its expertise in large-scale solar projects. The 600 MW initiative will play a key role in strengthening the country’s renewable energy capacity and supporting its environmental goals.
  • In July 2024, Complete Solar has acquired Core Energy, expanding its solar energy solutions and service capabilities. This strategic acquisition strengthens Complete Solar's position in the competitive renewable energy market, enhancing its ability to offer comprehensive solar solutions to residential and commercial customers. The integration of Core Energy’s expertise and assets will enable Complete Solar to accelerate growth and expand its customer base, further supporting the transition to clean energy. The deal reflects Complete Solar’s commitment to expanding its nationwide solar presence.

Key Market Players

  • ACWA Power International
  • First Solar Inc
  • Abdul Latif Jameel IPR Company Limited
  • SunPower Corporation
  • Sunrun Inc.
  • Trina Solar Co.,Ltd
  • Hanwha Corporation
  • LONGi Green Energy Technology Co., Ltd.

 By Technology

By Module Type

By Application

By Grid Connectivity

By Region

  • Solar PV
  • Concentrated Solar Power
  • Thin Film
  • Crystalline
  • Residential
  • Commercial
  • Industrial
  • On-Grid
  • Off-Grid
  • Riyadh
  • Makkah
  • Madinah
  • Jeddah
  • Tabuk
  • Eastern Province
  • Rest of Saudi Arabia

Report Scope:

In this report, the Saudi Arabia Solar Energy Panel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Saudi Arabia Solar Energy Panel Market, By Technology:

o   Solar PV

o   Concentrated Solar Power

  • Saudi Arabia Solar Energy Panel Market, By Module Type:

o   Thin Film

o   Crystalline

  • Saudi Arabia Solar Energy Panel Market, By Application:

o   Residential

o   Commercial

o   Industrial  

  • Saudi Arabia Solar Energy Panel Market, By Grid Connectivity:

o   On-Grid

o   Off-Grid

  • Saudi Arabia Solar Energy Panel Market, By Region:

o   Riyadh

o   Makkah

o   Madinah

o   Jeddah

o   Tabuk

o   Eastern Province

o   Rest of Saudi Arabia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Solar Energy Panel Market.

Available Customizations:

Saudi Arabia Solar Energy Panel 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 Solar Energy Panel 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 sales@techsciresearch.com

Table of content

Table of content

1.       Product Overview

1.1.   Market Definition

1.2.   Scope of the Market

1.2.1.        Markets Covered

1.2.2.        Years Considered for Study

1.2.3.        Key Market Segmentations

2.       Research Methodology

2.1.   Objective of the Study

2.2.   Baseline Methodology

2.3.   Formulation of the Scope

2.4.   Assumptions and Limitations

2.5.   Sources of Research

2.5.1.        Secondary Research

2.5.2.        Primary Research

2.6.   Approach for the Market Study

2.6.1.        The Bottom-Up Approach

2.6.2.        The Top-Down Approach

2.7.   Methodology Followed for Calculation of Market Size & Market Shares

2.8.   Forecasting Methodology

2.8.1.        Data Triangulation & Validation

3.       Executive Summary

4.       Impact of COVID-19 on Saudi Arabia Solar Energy Panel Market

5.       Voice of Customer

6.       Saudi Arabia Solar Energy Panel Market Overview

7.       Saudi Arabia Solar Energy Panel Market Outlook

7.1.   Market Size & Forecast

7.1.1.        By Value

7.2.   Market Share & Forecast

7.2.1.        By Technology (Solar PV, Concentrated Solar Power)

7.2.2.        By Module Type (Thin Film, Crystalline)

7.2.3.        By Grid Connectivity (On-Grid, Off-Grid)

7.2.4.        By Application (Residential, Commercial, Industrial)

7.2.5.        By Region (Riyadh, Makkah, Madinah, Jeddah, Tabuk, Eastern Province, Rest of Saudi Arabia)

7.3.   By Company (2024)

7.4.   Market Map

8.       Riyadh Solar Energy Panel Market Outlook

8.1.   Market Size & Forecast

8.1.1.        By Value

8.2.   Market Share & Forecast

8.2.1.        By Technology

8.2.2.        By Module Type

8.2.3.        By Grid Connectivity

8.2.4.        By Application

9.       Makkah Solar Energy Panel Market Outlook

9.1.   Market Size & Forecast

9.1.1.        By Value

9.2.   Market Share & Forecast

9.2.1.        By Technology

9.2.2.        By Module Type

9.2.3.        By Grid Connectivity

9.2.4.        By Application

10.     Madinah Solar Energy Panel Market Outlook

10.1.Market Size & Forecast

10.1.1.     By Value

10.2.Market Share & Forecast

10.2.1.     By Technology

10.2.2.     By Module Type

10.2.3.     By Grid Connectivity

10.2.4.     By Application

11.     Jeddah Solar Energy Panel Market Outlook

11.1.Market Size & Forecast

11.1.1.     By Value

11.2.Market Share & Forecast

11.2.1.     By Technology

11.2.2.     By Module Type

11.2.3.     By Grid Connectivity

11.2.4.     By Application

12.     Tabuk Solar Energy Panel Market Outlook

12.1.Market Size & Forecast

12.1.1.     By Value

12.2.Market Share & Forecast

12.2.1.     By Technology

12.2.2.     By Module Type

12.2.3.     By Grid Connectivity

12.2.4.     By Application

13.     Eastern Province Solar Energy Panel Market Outlook

13.1.Market Size & Forecast

13.1.1.     By Value

13.2.Market Share & Forecast

13.2.1.     By Technology

13.2.2.     By Module Type

13.2.3.     By Grid Connectivity

13.2.4.     By Application

14.     Rest of Saudi Arabia Solar Energy Panel Market Outlook

14.1.Market Size & Forecast

14.1.1.     By Value

14.2.Market Share & Forecast

14.2.1.     By Technology

14.2.2.     By Module Type

14.2.3.     By Grid Connectivity

14.2.4.     By Application

 

 

 

 

 

15.     Market Dynamics

15.1.Drivers

15.2.Challenges

16.     Market Trends and Developments

17.     Company Profiles

17.1.ACWA Power International

17.1.1.     Business Overview

17.1.2.     Key Revenue and Financials  

17.1.3.     Recent Developments

17.1.4.     Key Personnel/Key Contact Person

17.1.5.     Key Product/Services Offered

17.2.First Solar Inc

17.2.1.     Business Overview

17.2.2.     Key Revenue and Financials  

17.2.3.     Recent Developments

17.2.4.     Key Personnel/Key Contact Person

17.2.5.     Key Product/Services Offered

17.3.Abdul Latif Jameel IPR Company Limited

17.3.1.     Business Overview

17.3.2.     Key Revenue and Financials  

17.3.3.     Recent Developments

17.3.4.     Key Personnel/Key Contact Person

17.3.5.     Key Product/Services Offered

17.4.SunPower Corporation

17.4.1.     Business Overview

17.4.2.     Key Revenue and Financials  

17.4.3.     Recent Developments

17.4.4.     Key Personnel/Key Contact Person

17.4.5.     Key Product/Services Offered

17.5.Sunrun Inc.

17.5.1.     Business Overview

17.5.2.     Key Revenue and Financials  

17.5.3.     Recent Developments

17.5.4.     Key Personnel/Key Contact Person

17.5.5.     Key Product/Services Offered

17.6.Trina Solar Co.,Ltd

17.6.1.     Business Overview

17.6.2.     Key Revenue and Financials  

17.6.3.     Recent Developments

17.6.4.     Key Personnel/Key Contact Person

17.6.5.     Key Product/Services Offered

17.7.Hanwha Corporation

17.7.1.     Business Overview

17.7.2.     Key Revenue and Financials  

17.7.3.     Recent Developments

17.7.4.     Key Personnel/Key Contact Person

17.7.5.     Key Product/Services Offered

17.8.LONGi Green Energy Technology Co., Ltd.

17.8.1.     Business Overview

17.8.2.     Key Revenue and Financials  

17.8.3.     Recent Developments

17.8.4.     Key Personnel/Key Contact Person

17.8.5.     Key Product/Services Offered

18.     Strategic Recommendations

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Saudi Arabia Solar Energy Panel Market was USD 350 million in 2024.

In 2024, the Solar PV segment dominated the Saudi Arabia Solar Energy Panel market due to its proven efficiency and widespread adoption in both residential and commercial applications. The growing demand for renewable energy, driven by government initiatives and sustainability goals, further accelerated the use of Solar PV technology across the country.

Riyadh lead the Saudi Arabia Solar Energy Panel Market due to its high solar irradiance and strategic positioning as the nation’s capital. The city’s rapid urban development, coupled with strong government support for renewable energy projects, drives significant demand for solar energy solutions.

The major drivers for the Saudi Arabia Solar Energy Panel Market include the nation's commitment to diversify its energy mix, reduce reliance on fossil fuels, achieve sustainability goals outlined in Vision 2030, and capitalize on abundant sunlight for solar power generation.

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