Saudi Arabia Solar Energy Market Size to Surpass USD 145.4 Billion by 2034, at a CAGR of 37.39%

Saudi Arabia Solar Energy Market Overview

Market Size in 2025: USD 8.3 Billion

Market Size in 2034: USD 145.4 Billion

Market Growth Rate 2026-2034: 37.39%

According to IMARC Group's latest research publication, "Saudi Arabia Solar Energy Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia solar energy market size was valued at USD 8.3 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 145.4 Billion by 2034, exhibiting a CAGR of 37.39% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Solar Energy Market

● AI-powered solar tracking systems optimize panel positioning throughout the day, maximizing energy capture and significantly improving overall efficiency across Saudi Arabia's large-scale solar farms.

● Machine learning algorithms enhance energy output forecasting by analyzing weather patterns and historical data, enabling better grid integration and power distribution planning nationwide.

● AI-driven predictive maintenance monitors solar equipment performance continuously, detecting potential failures early and reducing downtime across the Kingdom's expanding renewable energy infrastructure.

● Intelligent energy management systems utilize artificial intelligence for demand forecasting and load balancing, optimizing battery storage utilization and ensuring stable power delivery to the grid.

● AI-enhanced defect detection analyzes solar panel health through thermal imaging and visual inspection, identifying issues rapidly and improving quality control at manufacturing and installation sites.

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How Vision 2030 is Transforming Saudi Arabia Solar Energy Industry

Saudi Arabia's Vision 2030 is transforming the solar energy industry by driving economic diversification, sustainability, and energy security through major investments in renewable infrastructure. The Kingdom aims to generate half of its electricity from renewable sources, shifting its energy mix away from fossil fuels. Under the National Renewable Energy Programme, large-scale solar farms are being deployed across desert regions, leveraging some of the world's highest solar irradiance levels. Mega-projects like NEOM, The Red Sea Project, and The Line integrate advanced solar systems and energy storage, setting new standards for sustainable development. The Public Investment Fund's strong commitment to renewables is attracting global technology providers and energy companies. Supportive regulations, competitive PPAs, and investor-friendly policies are further boosting local and foreign participation. Additionally, new economic zones and solar manufacturing facilities are strengthening domestic production and generating high-value jobs. Ultimately, Vision 2030 positions solar energy as a central pillar of Saudi Arabia's economic transformation and establishes the Kingdom as a rising global leader in clean energy innovation and exports.

Saudi Arabia Solar Energy Market Trends & Drivers:

Saudi Arabia's solar energy market is experiencing explosive growth, driven by the Kingdom's exceptional geographic advantages with some of the highest solar irradiance levels globally, providing optimal conditions for large-scale photovoltaic and concentrated solar power installations across vast desert territories. The government's unwavering commitment under Vision 2030 to generate substantial renewable energy capacity is fueling unprecedented investment in solar infrastructure, with the National Renewable Energy Programme systematically deploying utility-scale solar farms through competitive tender processes that have consistently achieved record-low levelized costs of electricity globally. The Public Investment Fund is playing a catalyst role through strategic partnerships with international energy companies and mandated targets for renewable energy development, accelerating project implementation timelines and ensuring adequate capital flows into the sector.

The declining cost of solar technology combined with continuous improvements in photovoltaic efficiency and energy storage systems is making solar power increasingly competitive with conventional generation sources, driving widespread adoption across utility, commercial, and industrial segments. Major power purchase agreements signed with developer consortia led by regional champions are bringing massive capacity additions online, with projects spanning across Asir, Madinah, Makkah, and Riyadh provinces featuring advanced solar tracking systems and integrated battery storage solutions. The Kingdom's focus on energy security and reducing reliance on liquid fuels for electricity generation is creating sustained demand for domestic renewable energy capacity, while simultaneously supporting oil and gas export optimization strategies that maximize hydrocarbon revenues from international markets.

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Saudi Arabia Solar Energy Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Solar Photovoltaic (PV)
● Concentrated Solar Power (CSP)

Breakup by Region:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

● ACWA Power Company
● Alfanar Group
● EDF Renewables
● ENGIE Solutions
● Masdar (Abu Dhabi Future Energy Company)
● Saudi Electricity Company

Recent News and Developments in Saudi Arabia Solar Energy Market

● December 2025: ACWA Power, together with Water and Electricity Holding Company and Saudi Aramco Power Company, completed the financing process for seven large-scale renewable energy projects in Saudi Arabia, securing substantial debt financing from local, regional, and international lenders across the Middle East, Europe, and Asia.

● November 2025: Saudi Arabia's renewable energy capacity continued its rapid expansion, with the Kingdom breaking into the top global markets for annual new solar installations, demonstrating unprecedented momentum in clean energy deployment across multiple regions.

● October 2025: Saudi Arabia awarded renewable energy contracts covering five projects including four solar and one wind, reinforcing the Kingdom's leading position in developing renewable energy projects with highly competitive levelized costs of electricity globally.

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