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The latest research by Mordor Intelligence covers the “Saudi Arabia Solar Energy Market,” delivering insights into market dynamics, drivers of growth, and long-term forecasts.
saudi arabia solar energy market is set for rapid growth, with installed capacity rising from 13.47 GW in 2026 to 52.72 GW by 2031 at a CAGR of 31.4%, driven by Vision 2030 targets and competitive solar tariffs
This surge reflects the country’s commitment to diversify its energy mix under Vision 2030, reduce reliance on hydrocarbons, and meet rising electricity demand with clean alternatives.
Saudi Arabia’s abundant solar irradiance, vast desert land availability, and competitive auction tariffs have positioned the nation as one of the most attractive solar markets globally. The government’s structured tendering process through the Renewable Energy Project Development Office (REPDO) has created predictable timelines and bankable contracts, encouraging both domestic and international investors.
Saudi Arabia Solar Energy Emerging Trends
Vision 2030 Renewable Energy Targets
Saudi Arabia aims to achieve 58.7 GW of renewable energy capacity by 2030, with solar power expected to account for nearly half of this target REPDO’s multi-round auctions have awarded over 3.3 GW in recent rounds at tariffs as low as 1.97¢/kWh, underscoring the competitiveness of solar projects.
Declining Cost of Solar PV
Winning bids have reached 1.67¢/kWh, making solar PV cheaper than natural gas when export opportunity costs are considered Local manufacturing agreements with companies such as JinkoSolar and TCL Zhonghuan have reduced import duties and freight costs, further lowering project expenses.
Predictable Tender Pipeline
Saudi Arabia has announced tenders covering more than 20 GW through 2030, offering unmatched transparency in the region Standardized PPAs, indexed escalation clauses, and hybrid solar-storage obligations ensure long-term revenue predictability.
Abundant Solar Resources
Northern desert zones record direct normal irradiance levels of 2,500 kWh/m²/year, surpassing benchmarks in California and Spain This high irradiation, combined with low land-lease rates, sustains competitive pricing and enhances project bankability.
Explore Regional Market Dynamics with Customized Editions, Including Japan: https://www.mordorintelligence.com/ja/industry-reports/saudi-arabia-solar-energy-market?utm_source=emailwire
Saudi Arabia Solar Energy Segmentation
By Technology
- Solar Photovoltaic (PV): Accounted for 98.55% market share in 2025, driven by cost advantages and scalability.
- Concentrated Solar Power (CSP): Though smaller in volume, CSP is projected to grow at 44.3% CAGR (2026–2031), offering dispatchable power with thermal storage.
By Grid Type
- On-Grid Systems: Held 89.85% share in 2025, supported by large utility-scale projects and strong PPAs.
- Off-Grid Systems: Expected to grow at 36.1% CAGR, serving remote projects such as NEOM and mining operations.
By End-User
- Utility-Scale Projects: Represented 65.05% of capacity in 2025, anchored by large-scale tenders.
- Commercial & Industrial (C&I): Forecasted to expand at 38.9% CAGR, driven by corporate sustainability commitments and cost savings.
- Residential: Currently modest due to subsidized tariffs but showing potential in smart city initiatives.
Explore Energy & Power Research Details: https://www.mordorintelligence.com/market-analysis/energy-power?utm_source=emailwire
Saudi Arabia Solar Energy Companies
- ACWA Power Company
- Alfanar Group
- Abu Dhabi Future Energy Company (Masdar)
- Saudi Electricity Company
- EDF Renewables
- ENGIE SA
- JinkoSolar Holding Co. Ltd
- Enel SpA
- First Solar Inc.
- Canadian Solar Inc.
- Trina Solar Co. Ltd
- LONGi Green Energy Technology Co. Ltd
- JA Solar Technology Co. Ltd
- Huawei Digital Power
- Sungrow Power Supply Co. Ltd
- SMA Solar Technology AG
- Desert Technologies
- First National Operation & Maintenance Company (NOMAC)
- TotalEnergies Renewables
- Larsen & Toubro Ltd
- Hitachi Energy Ltd
- Scatec ASA
Conclusion:
The Saudi Arabia solar energy market is on track to become one of the fastest-growing renewable sectors worldwide. With installed capacity projected to quadruple between 2026 and 2031, the country is aligning its energy transition with economic diversification goals under Vision 2030
Browse Related Reports:
Residential Solar Energy Market
Middle East Solar Power Market
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