Saudi Arabia Solar Photovoltaic Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Solar Photovoltaic Market Trends and Growth Drivers

Large-Scale Solar Projects Are a Trend in Market

• One of the major key trends in the market is the continuous work on large-scale solar projects.
• It is due to several attributes, such as favorable incentives and policies, reduced expenses for solar technology, and abundant solar resources in the nation.
• The Saudi government is taking initiatives to drive development and address the issues of the lack of renewable energy generation.
• By 2027, Saudi Arabia plans to install 10 GW of renewable capacity, primarily through solar photovoltaics.
• Additionally, the nation’s organizations and the Public Investment Fund (PIF) are continuously collaborating with industry leaders to develop these renewable energy projects.

Vision 2030 Plan Is Driving the Market

• Vision 2030 is playing a crucial role in the growth of the solar photovoltaic market in Saudi Arabia.
• The main goal of this plan is to lower the dependence on oil revenues and improve financial management.
• One major initiative in this plan is the National Renewable Energy Program (NREP), aimed at installing 58.7 GW of renewable energy capacity by 2030.
• The government is promoting collaboration between the private and public sectors and re-evaluating regulatory frameworks, to encourage private sector investment in renewable energy, including solar photovoltaics.
• Additionally, Vision 2030 aims to create a thriving economy with opportunities for all, including a supportive business environment and education investments.

Climate Change Is a Major Challenge for the Market

• Climate change is one of the major issues facing the market.
• According to the data from the 2nd International Conference on Power Engineering [ICPE 2021], climate change is expected to reduce solar photovoltaic output by 2–6%.
• The decline in output is due to changes in solar irradiance and increased temperatures.
• Sandstorms are also a major issue in Saudi Arabia, which can deposit extensive amounts of sand and dust on these solar photovoltaic panels, which causes reduced output.
• Maintaining and operating solar PV systems in Saudi Arabia can be difficult due to harsh weather conditions, requiring periodic cleaning and repairs.

Saudi Arabia Solar Photovoltaic Market Analysis

Application Insights

• The power utilities sector will hold the largest market revenue of 35% in 2024.
• Since power utilities need to generate massive amounts of electricity to sell to customers, they need a huge number of solar arrays installed over vast areas of land.
• The government is rapidly doing away with fossil fuels for energy generation to both diversify its economy and achieve its sustainability goals.
• As per the International Trade Administration, the kingdom plans to generate 50% of its electrical power from renewable sources by 2030.
• Further, this sector is being supported by technical innovations and developments in solar technology.
• These innovations and developments are helping this technology be more reliable, cost-effective, and efficient.

The applications analyzed in this report are:

• Commercial
• Residential
• Industrial
• Power Utilities (Largest and Fastest-Growing Category)

Technology Insights

• The crystalline silicon category will hold the largest market share, of 55%, in 2024.
• Crystalline silicon technologies are highly reliable and efficient, and they have been improving over time to provide optimal performance.
• Additionally, crystalline silicon is a cost-effective alternative to other technologies, making it widely used in Saudi solar projects.

The technologies included in this report are:

• Crystalline Silicon (Largest and Fastest-Growing Category)
  • Monocrystalline silicon
  • Polycrystalline silicon
• Thin-Film
• Others

Deployment Insights

• Ground-mounted installations will hold the larger share, of 65%, in the market in 2024.
• Saudi Arabia's vacant lands are ideal for ground-mounted solar photovoltaic installations.
• These systems offer ease in covering a large area, leading to increased energy generation.
• Additionally, the installation and maintenance of these systems are easier compared to roof-top options.

The deployments included in this report are:

• Roof-Top (Faster-Growing Category)
• Ground-Mounted (Larger Category)

Connectivity Insights

• The on-grid bifurcation is expected to grow at a CAGR of 10.0% in the forecast period.
• On-grid solar photovoltaic systems are connected to the national grid, making them easy to implement and integrate.
• Moreover, they enable the systematic use of solar power and alignment with the wider goals and policies of energy.
• This connectivity is highly reliable and scalable, making it ideal for both large and small solar projects.

The connectivity types included in this report are:

• On-Grid (Larger and Faster-Growing Category)
• Off-Grid

Al-Riyadh – Largest Province Market

• Al-Riyadh is leading the Saudi Arabian solar photovoltaic market, by holding 40% of the market share in 2024.
• As the capital city of Saudi Arabia, Al-Riyadh is a hub for solar energy projects.
• This city is home to many significant solar power projects, including the Al Shuaibah solar plant.
• Moreover, the Vision 2030 plan is driving Al-Riyadh's market growth by increasing the use of renewable energy sources.

The provinces analyzed in this report are:

• Al-Riyadh (Largest Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region (Fastest-Growing Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Photovoltaic Market Share

Market Nature – Consolidated

The Saudi Arabian solar photovoltaic market is consolidated, with some major players concentrating on investments and large-scale projects. Investor and government support, as well as advances in solar technology, are all contributing to the growth of the market.

Saudi Arabia Solar PV Market News

• In February 2024, Saudi Arabia announced successful bidders for solar projects with a combined capacity of 3.7 GW.
• In February 2024, ACWA Power secured USD 2.3 billion in funding for Saudi solar projects totaling 4.55 GW in capacity.
• In November 2023, Jinko Power announced the PPA signing for the 400-MW Tabarjal solar PV project in the Kingdom of Saudi Arabia.
• In August 2023, Saudi Arabia financed a USD-77 million solar power project in Belize.