Saudi Arabia Solar Energy Market Expected to Reach USD 125.2 Billion by 2033 - IMARC Group

Saudi Arabia Solar Energy Market Statistics, Outlook and Regional Analysis 2025-2033

The Saudi Arabia solar energy market size was valued at USD 6.0 Billion in 2024, and it is expected to reach USD 125.2 Billion by 2033, exhibiting a growth rate (CAGR) of 39.36% from 2025 to 2033.

Saudi Arabia's solar energy market is experiencing significant momentum, underpinned by ambitious national objectives and strategic investments aimed at diversifying the energy sector. The Saudi government’s Vision 2030 plan serves as a pivotal framework, fostering the growth of renewable energy and reducing dependence on oil. Solar projects, such as the Sakaka Solar Power Plant and initiatives within the National Renewable Energy Program (NREP), have established foundational progress. For instance, as per industry reports, Sakaka Solar Power Plant project is active as of October 2024, producing 940,000MWh of clean electricity, sufficient to power around 75,000 households and counteracting 430,000 tons of carbon emissions each year. Furthermore, the country’s geographical advantage, with abundant sunlight and vast arid land, supports large-scale solar installations. In addition to this, technological advancements in photovoltaic (PV) systems and declining costs of solar panels further strengthen the market's potential. Investment partnerships with global renewable energy firms are also accelerating project development, enhancing technical expertise and resource allocation.

Drivers of growth in the Saudi solar energy sector include policy incentives and strong government backing through regulatory frameworks that encourage both public and private investments. The drive for energy sustainability and commitments to carbon reduction targets aligns with global trends, positioning Saudi Arabia as a competitive participant in the renewable energy landscape. Moreover, energy demand within the country is rising due to industrial expansion and a growing population, prompting an increased focus on sustainable energy sources. For instance, as per industry reports, the current population of Saudi Arabia is 34.81 million and is estimated to grow until 2060, reaching 45.35 million. Additionally, solar energy offers a scalable solution that supports grid stability while diversifying energy resources. The implementation of feed-in tariffs and government tenders for solar projects further stimulates market activity.

Saudi Arabia Solar Energy Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Northern and Central Region Solar Energy Market Trends:

The Northern and Central regions of Saudi Arabia are notably profiting from solar energy projects boosted by tactical partnerships and government initiatives. These areas, with their robust solar exposure and expansive, open landscapes, are best-suited for high-capacity solar farms, bolstering energy independence and fostering the national renewable energy objectives.

Western Region Solar Energy Market Trends:

The Western region, hub of key cities such as Makkah and Jeddah, is rapidly growing in solar energy adoption through initiates that incorporate renewable solutions to aid energy demands as well as urban development. In addition, heavy investments in solar infrastructure are notably improving energy efficiency and supporting the region's sustainable economic progress.

Eastern Region Solar Energy Market Trends:

The Eastern region, known for its oil and gas reserves, is diversifying its energy profile with significant solar energy developments. This shift supports the Kingdom’s goal to balance traditional energy with renewables. Furthermore, solar projects here are improving energy reliability, reducing emissions, and attracting regional and international investors.

Southern Region Solar Energy Market Trends:

The Southern region, highlighted by its remote communities and mountainous landscape, is harnessing the solar energy to lower reliability on traditional energy sources and to significantly improve availability of power. Moreover, small to medium-scale solar installations are crucial to fostering local energy requirements and endorsing sustainability in less urbanized regions.

Top Companies Leading in the Saudi Arabia Solar Energy Industry

Some of the leading Saudi Arabia solar energy market companies include ACWA Power Company, Alfanar Group, EDF Renewables, ENGIE Solutions, Masdar (Abu Dhabi Future Energy Company), Saudi Electricity Company, among many others. In November 2024, ACWA Power Company announced the commencement of full commercial operations for its 600 MW Al-Shuaibah 1 Solar Photovoltaic Project. The Saudi Power Procurement Co. issued the commercial operation certificate for the project, enabling full-scale production.

Saudi Arabia Solar Energy Market Segmentation Coverage

• On the basis of the type, the market has been categorized into solar photovoltaic (PV) and concentrated solar power (CSP). The solar photovoltaic (PV) segment holds significant prominence in Saudi Arabia chiefly due to its adaptability, cost-efficiency, and excellent compatibility for residential as well as large-scale installations. Meanwhile, the concentrated solar power (CSP) segment is valued for its constant power supply and high energy storage abilities, catering to the nation's targets for energy sustainability and dependability.