Saudi Arabia Solar Panel Market Overview

Market Size in 2024 : 2.7 Gigawatt

Market Size in 2033: 11.9 Gigawatt

Market Growth Rate 2025-2033: 15.9%

According to IMARC Group's latest research publication,"Saudi Arabia Solar Panel Market Size, Share, Trends and Forecast by Type, End Use, and Region, 2025-2033", The Saudi Arabia solar panel market size reached 2.7 Gigawatt in 2024. Looking forward, IMARC Group expects the market to reach 11.9 Gigawatt by 2033, exhibiting a growth rate (CAGR) of 15.9% during 2025-2033.

Growth Factors in the Saudi Arabia Solar Panel Market

• Vision 2030 and Government Support

Saudi Arabia's Vision 2030 initiative is a major catalyst for the Solar Panels Saudi Arabia market, aiming to diversify the economy away from oil dependency. The government’s National Renewable Energy Program (NREP) promotes solar energy through incentives like tax breaks, subsidies, and long-term power purchase agreements. For instance, the Sudair Solar Power Project, one of the world’s largest single-site solar initiatives with a capacity of 1.5 GW, showcases the government’s commitment to scaling renewable energy. These policies create a favorable environment for both domestic and international investors, driving the adoption of solar panels across various sectors, including residential, commercial, and industrial applications. The market for solar panels in Saudi Arabia is projected to reach significant growth, with forecasts indicating values in the billions of USD by 2030, underscoring the strong governmental support and strategic investments in this sector.

• Abundant Solar Resources

Saudi Arabia’s geographical advantage, with over 4,000 hours of sunlight annually and vast desert landscapes, makes it an ideal location for solar energy projects. The high solar irradiance ensures efficient energy generation, making solar panels a cost-effective solution. Projects like the Sakaka Solar PV Park, with a capacity of 405 MW, demonstrate how the country leverages its natural resources for large-scale solar installations. This abundance of sunlight, combined with ample land availability, reduces the logistical challenges of deploying solar farms, encouraging both local and global companies to invest in the market.

• Increasing Energy Demand

The growing population and rapid industrialization in Saudi Arabia are driving a surge in energy demand, necessitating sustainable energy solutions. Solar panels offer a reliable way to meet this demand while reducing reliance on fossil fuels. For example, industrial hubs in Riyadh and Al Jouf are adopting on-site solar setups to power manufacturing facilities, lowering energy costs and carbon emissions. This trend is further supported by the need for energy security, as solar energy provides a decentralized and resilient power source, making it a strategic choice for addressing the country’s expanding energy needs.

Key Trends in the Saudi Arabia Solar Panel Market

• Technological Advancements

Innovations in solar panel technology, such as bifacial panels and advanced tracking systems, are transforming the Saudi market by improving efficiency and durability in harsh desert conditions. For instance, JinkoSolar’s 2025 deal to supply 1.75 GW of N-type TOPCon bifacial modules for projects in Medina and Hail highlights the shift toward high-performance panels designed for extreme environments. These advancements enhance energy output and reduce maintenance costs, making solar projects more economically viable. Additionally, research partnerships with institutions like King Abdullah University of Science and Technology are driving progress in perovskite-based cells, further boosting efficiency.

• Localization of Manufacturing

The push for local manufacturing is reshaping the solar panel market, with Saudi Arabia requiring a significant portion of project value to be produced locally. Companies like JinkoSolar and Trina Solar are establishing factories in the Kingdom, such as Trina’s 3 GW tracking bracket facility in Jeddah, set to be operational in 2025. These efforts align with Vision 2030’s goal of developing a domestic renewable energy industry, creating jobs and reducing reliance on imported components. This trend fosters economic diversification and strengthens the supply chain, making solar projects more sustainable and cost-competitive.

• Decentralized Solar Installations

There is a growing shift toward decentralized solar installations, with residential, commercial, and industrial consumers adopting rooftop solar panels and smaller-scale systems. This trend is driven by the desire for energy independence and cost savings. For example, King Abdullah Economic City’s hybrid solar farm, featuring 25,000 ground-mounted panels, illustrates the move toward distributed generation. These systems reduce reliance on the centralized grid and mitigate the impact of power fluctuations, appealing to businesses and homeowners alike. Government incentives further encourage this trend, making decentralized solar a key component of the market’s growth.

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Saudi Arabia Solar Panel Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Crystal Silicon
• Monocrystalline Silicon
• Polycrystalline Silicon
• Thin Film
• Others

End Use Insights:

• Commercial
• Residential
• Industrial

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Future Outlook

The Saudi Arabia solar panel market is poised for significant expansion, driven by the country’s ambitious renewable energy targets and global push for sustainability. Vision 2030’s goal to achieve 50% renewable energy by 2030, coupled with projects like the 600 MW Shuaibah IPP and the 1,500 MW Sudair IPP, signals a robust pipeline of solar initiatives. Emerging technologies, such as space-based solar power explored through partnerships like NEOM’s collaboration with the UK, could position Saudi Arabia as a global leader in innovative energy solutions. Despite challenges like grid integration and sandstorm-related maintenance, investments in smart grids and climate-resilient technologies will ensure sustained growth, solidifying the Kingdom’s role in the global renewable energy landscape.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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