Saudi Arabia solar energy solutions market is growing due to energy diversification goals, reduced fossil fuel reliance, and rising solar adoption from 2026 to 2030F.

According to a recent report by TechSci Research titled “Saudi Arabia Solar Energy Solutions Market – By Region, Competition, Forecast and Opportunities, 2030F”, the Saudi Arabia solar energy solutions market was valued at USD 2.5 billion in 2024 and is projected to reach USD 7.72 billion by 2030, growing at a robust CAGR of 20.5% during the forecast period. This significant growth highlights the kingdom’s strategic transition toward sustainable energy alternatives and its broader commitment to diversifying the national energy mix.

As one of the world’s largest oil producers, Saudi Arabia recognizes the importance of reducing its heavy reliance on fossil fuels. The government has acknowledged that ensuring long-term energy security and stability necessitates a broader, more diversified portfolio. Solar energy solutions have emerged as a central component in this transformation. Leveraging its abundant solar resources, Saudi Arabia is actively investing in technologies that can generate clean energy, lower carbon emissions, and align the country with global environmental standards.

This strategic pivot plays a critical role in achieving the goals outlined in Vision 2030, the kingdom’s ambitious blueprint for economic and environmental transformation. By expanding its renewable energy capacity—particularly through solar initiatives—Saudi Arabia aims to enhance its energy independence, reduce vulnerability to geopolitical and market fluctuations, and contribute meaningfully to the global fight against climate change.

Moreover, this transition strengthens domestic energy resilience by reallocating more of the oil currently used for electricity generation toward export or industrial use. This shift not only improves the country’s economic outlook but also ensures a more sustainable future for coming generations.

Regional Spotlight: Jeddah Emerges as a Solar Energy Hub

Among the various regions in Saudi Arabia, Jeddah has emerged as the fastest-growing center for solar energy solutions. Several strategic factors contribute to the region's prominence in the solar landscape.

Located along the Red Sea, Jeddah benefits from high solar irradiance levels and a desert climate, making it one of the most suitable locations in the kingdom for solar photovoltaic (PV) installations. The city experiences abundant sunlight throughout the year, providing optimal conditions for generating solar power on both small and large scales.

Jeddah’s growth is also driven by strong alignment with Vision 2030, which encourages clean energy expansion as part of the nation’s broader economic diversification efforts. The city is actively involved in multiple renewable energy initiatives, including the Jeddah Renewable Energy Project, which aims to deploy solar farms and rooftop installations to meet regional energy demand and enhance grid reliability.

Another key driver is the vibrant commercial and industrial base of Jeddah. The region serves as a major economic and logistical hub, hosting industries such as construction, hospitality, manufacturing, and retail. Many of these businesses are investing in solar solutions to reduce operational expenses and demonstrate corporate environmental responsibility. Solar PV systems are becoming a practical, cost-saving, and sustainable solution, especially for companies seeking long-term energy efficiency and a reduction in their carbon footprint.

Government support has further accelerated Jeddah’s rise as a solar leader. The Saudi government has introduced regulatory incentives, such as tax benefits, subsidies, and streamlined permitting processes, to encourage solar adoption. These measures, along with growing public-private partnerships, have led to an influx of investment in renewable projects. Local and international developers are increasingly targeting Jeddah for large-scale solar deployments, capitalizing on the region’s favorable climate, infrastructure, and business environment.

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Application Trends: Agriculture & Horticulture Leads Solar Adoption

In terms of application, the Agriculture & Horticulture segment dominated the Saudi solar energy solutions market in 2024 and is expected to maintain its leadership through 2030. The kingdom’s agriculture sector, though limited by arid conditions, is undergoing a transformation through the integration of renewable energy technologies.

Solar-powered solutions are being widely adopted in agriculture to power irrigation systems, run greenhouses, and support on-site energy needs for rural farms. The use of solar irrigation is particularly notable, offering a cost-effective and environmentally friendly alternative to diesel or grid-powered systems. These systems not only reduce dependence on traditional energy but also help farmers manage costs and improve productivity in off-grid areas.

One promising trend is the growing adoption of agrivoltaics, where solar panels are installed above crops, enabling dual use of land for farming and energy production. This approach is especially relevant in regions like Saudi Arabia, where optimizing land use is critical due to water scarcity and limited arable land.

The government’s emphasis on food security and sustainable agriculture under Vision 2030 further propels this segment’s growth. Supportive policies and financial incentives for farmers to adopt solar-powered equipment have made it easier for agricultural operations to transition to clean energy sources.

As the push for sustainable agriculture intensifies, the Agriculture & Horticulture segment is expected to remain at the forefront of solar adoption. Its continued growth will contribute significantly to the kingdom's goals of improving energy efficiency, ensuring rural electrification, and creating a resilient and eco-friendly agricultural ecosystem.

Conclusion

Saudi Arabia’s solar energy solutions market is poised for sustained and accelerated growth through 2030, driven by strong government initiatives, abundant solar resources, and increasing demand for clean, cost-effective power. Regions like Jeddah are leading the charge, backed by strategic investments and industrial demand. Meanwhile, the agricultural sector is making major strides with solar-powered innovations, helping the kingdom build a more secure and diversified energy future.

As the country continues its journey toward renewable energy leadership, solar solutions will remain a cornerstone of its strategy to achieve economic, environmental, and energy transformation in line with Vision 2030.

Key market players in the Saudi Arabia Solar Energy Solutions Market are: -

ACWA Power International
Saudi Electricity Company
Saudi Arabian Oil Co.
Trina Solar Co.,Ltd
SolarEdge Technologies Inc.
Schneider Electric SE
First Solar Inc
Array Technologies, Inc.

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“The Saudi Arabia Solar Energy Solutions Market offers significant growth opportunities, driven by the country’s Vision 2030 initiative to diversify its energy sources and reduce dependency on fossil fuels. With abundant sunlight and favorable climatic conditions, Saudi Arabia is well-positioned to become a global leader in solar energy. The government’s commitment to achieving a renewable energy target of 50% by 2030 fuels demand for solar solutions across residential, commercial, and industrial sectors.

Additionally, large-scale solar projects such as the NEOM city and Red Sea development provide further market potential. As solar panel technology continues to advance, offering higher efficiency and reduced costs, there is increased potential for widespread adoption. The growing focus on environmental sustainability, along with supportive policies, subsidies, and incentives, creates a favorable market environment. There is also opportunity for innovation in energy storage solutions to complement solar energy systems, enhancing grid stability.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Saudi Arabia Solar Energy Solutions Market By Type (Photovoltaic Cells, Concentrated Solar Power Systems), By Application (Agriculture & Horticulture, Architecture, Transportation, Others) By Region, Competition, Forecast and Opportunities, 2020-2030F,” has evaluated the future growth potential of Saudi Arabia Solar Energy Solutions Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia Solar Energy Solutions Market.

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