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

Saudi Arabia Solar Power Market Size

Saudi Arabia Solar Power Market Trends & Drivers

Development of New High-Tech Cities Drives Market

• Saudi Arabia is building some of the world’s largest next-gen, smart cities as many migrants are moving in due to its high economic growth potential.
• To meet the energy requirement of the expanding population of Saudi Arabia, it is leveraging this solar energy, keeping in mind the ample amount of sunlight it receives.

Introduction of Perovskite Solar Cells Offers Opportunities

• The high absorption coefficient of the perovskite allows the ultra-thin films to completely absorb the solar spectrum, thereby increasing the efficiency of solar panels.
• Panels made up of these cells are cheap to produce and simple to manufacture.
• These cells have greatly increased the efficiency of the solar PV technology.
• The integration of these solar cells could help harness more solar power at a lower cost, thus offering opportunities in the market.

Uncertainty of Solar Power Could Hamper Market Growth

• Solar power generation is subject to the position of the sun and whether there are clouds in the sky or not. This is why too much dependence of energy utility companies on solar power for regular electricity distribution is not viable.
• PV array cannot generate power at night, which could hamper the growth of the market to some extent.

Saudi Arabia Solar Power Industry Outlook

Technology Insights

• Photovoltaic cells are the larger category holding a share of 70% in 2024. This is due to the versatility, easy installation and maintenance, and long-understood technology of PV arrays.
• These cells are capable of converting the sun’s light energy directly to electricity, making them an easy choice.
• The concentrated solar power category is expected to witness the higher CAGR, of 50.5%, during 2024–2030. CSP systems do not have any byproduct, and they have the ability to generate and store massive amounts of energy. The only by-product is waste heat, which is utilized in the kingdom for desalination process.

On the basis of technology, the market is bifurcated as:

• Photovoltaic Cells (Larger Category)
• Concentrated Solar Power (Faster-Growing Category)

Application Insights

• The power utility category holds the largest share, of 40%, and it is the fastest-growing category as well, advancing at a CAGR of 50.4% during 2024-2030.
• The kingdom fulfills most of its energy needs from oil and gas, as it has abundant reserves of the fossil fuels. But, now, the country is shifting to renewable forms of energy, which is the reason for power utilities’ increasing generation of solar power.

On the basis of application, the market is categorized as-

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

Size Insights

• Medium-sized solar panels are the largest category, holding a share of around 50% in 2024. This is due to their compatibility for residential buildings as well as industrial sites. Medium-sized solar panels are not too costly to replace, can generate sufficient electricity, and fulfill power needs.
• The large category will advance at the highest CAGR, of 50.5%, during 2024–2030. Large solar panels are used by power utility companies, which need to produce, store, and transmit massive amounts of power.

The following sizes are considered in the report:

• Small
• Medium (Largest and Fastest Growing Category)
• Large

Al-Riyadh Is Largest Province

• Al-Riyadh holds largest share of 40% in 2024. The rapid construction for commercial and residential buildings and the increasing focus on the concept of self-dependence for electricity generation in buildings are driving the setup of solar power plants in the region.
• Al Jouf also holds significant share in the country’s market. The Sakaka solar PV park is located in the Al Jouf region. It is the largest power generation plant in Saudi Arabia, with a capacity of 405 MW.

Further, provinces analyzed for this report include:

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

Saudi Arabia Solar Power Market Share

The Saudi Arabian solar power market is consolidated, as the state-owned power company enjoy an almost complete monopoly. Further, the state-owned oil and gas company, Saudi Aramco, is expanding its focus on the renewable energy sector.

Several strategies are being used by the major players, such as mergers and acquisitions, partnerships, and collaborations, to expand their presence. In addition, many companies are investing in research and development to expand their business are, and meet the ever-rising energy demand.

Saudi Arabia Solar Power Market News

• In September 2022, as a part of the Ministry of Energy's National Renewable Energy Program, five projects were commissioned to generate electricity. Two of them were solar, one with a capacity of about 1100 MW and the other 400 MW.
• In June 2022, Guangdong Power Engineering Company (GPEC), a China Energy Engineering Group, won a module supply contract for the 400-MW Rabigh solar project.
• In March 2022, a contract was awarded to Jinko Power, under the Saudi Arabia's National Renewable Energy Programme (NREP), to develop the 300-MW Saad photovoltaic (PV) solar project.