According to IMARC Group’s latest research publication, Saudi Arabia solar energy market size reached USD 8.3 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 145.4 Billion by 2034, exhibiting a growth rate (CAGR) of 37.39% during 2026-2034.

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

• Solar and Wind Forecasting: AI models analyze weather patterns to optimize solar panel and wind turbine output, with predictive insights ensuring renewable plants operate at maximum efficiency across projects like NEOM and Sakaka PV.

• Grid Load Forecasting: AI predicts energy usage patterns across the Kingdom, allowing dynamic energy distribution and ensuring reliability during peak demand, particularly benefiting solar-powered regions where AI optimizes generation and grid feed-in.

• Predictive Maintenance: Machine learning algorithms analyze equipment sensor data to predict failures before they occur, minimizing downtime and extending critical infrastructure life, with AI detecting anomalies early in solar installations.

How Vision 2030 is Revolutionizing Saudi Arabia Solar Energy Industry

Vision 2030 is transforming Saudi Arabia’s solar energy landscape by targeting 50% renewable electricity generation, requiring approximately 130 gigawatts of capacity with 58.7 GW from solar and 40 GW from wind. The Kingdom has developed a project pipeline totaling 58.7 GW, with 10.2 GW already installed across 14 grid-connected plants, 28.5 GW under development, and 13.5 GW under tender. Major initiatives include the 1.5 GW Sudair Solar Plant (one of the world’s largest), the Shuaibah Solar Power Plant projected to generate 282 billion kWh over 35 years and cut 20 million tons of CO2 annually, and NEOM’s USD 8.4 billion green hydrogen facility featuring 4 GW of renewable capacity. The Public Investment Fund has invested approximately USD 400 billion since 2016 in alternative energy, while battery energy storage systems are expanding with 8 GWh operational and 22 GWh under development toward a national target of 48 GWh by 2030.

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Saudi Arabia Solar Energy Market Trends & Drivers:

The market is experiencing explosive growth driven by record-breaking project awards and declining technology costs. Saudi Arabia awarded renewable energy contracts worth over SAR 31 billion (USD 8.3 billion) for seven projects with ACWA Power-led consortium, including five solar projects totaling 15 GW capacity. Additional contracts worth SAR 9 billion (USD 2.4 billion) were awarded for five projects with 4.5 GW combined capacity, featuring the 1,400 MW Najran Solar Energy Project achieving the world’s second-lowest levelized cost of energy at 1.09682 US cents per kilowatt-hour. Masdar secured 2 GW of solar projects including the 1,400 MW Najran plant and 600 MW Ad Darb facility under 25-year power purchase agreements. By end of recent periods, total renewable energy generation capacity tendered reached 64 GW, with 43.2 GW signed and 12.3 GW already connected to the grid, representing unprecedented market acceleration.

Advanced energy storage and grid modernization are transforming solar integration capabilities. Saudi Arabia is rolling out large-scale battery energy storage systems with 8 GWh operational capacity and 22 GWh under development, supporting the national target of 48 GWh storage capacity. Smart grid technologies incorporating IoT, AI, and data analytics are improving predictive maintenance and real-time operations optimization. The Saudi Electricity Company and Electricity and Cogeneration Regulatory Authority are managing grid integration through transmission line expansion, smart meters, and advanced SCADA systems. Grid-scale battery projects, pumped hydro facilities, and AI-driven demand response systems are enabling seamless renewable energy accommodation. The Ministry of Energy launched a geographic survey installing 1,200 stations across 850,000 square kilometers to measure solar and wind energy metrics, optimizing future project locations and enhancing grid reliability.

Green hydrogen development and international collaboration are opening new market frontiers. NEOM Green Hydrogen Company’s flagship facility at Oxagon reached 80% completion, integrating 4 gigawatts of solar and wind capacity to produce 600 tons per day of carbon-free hydrogen for export markets, positioning Saudi Arabia as a first mover in the green hydrogen economy. A second large-scale green hydrogen project was announced for Yanbu Industrial City for completion. The Public Investment Fund signed three new agreements to localize manufacturing and assembly of solar and wind generating equipment components in Saudi Arabia through the Renewable Energy Localization subsidiary. International developers including TotalEnergies, EDF Renewables, ENGIE Solutions, and Masdar are establishing strong partnerships with Saudi entities, while competitive REPDO auctions continue attracting the world’s lowest solar energy tariffs and accelerating the Kingdom’s transition toward its ambitious renewable energy targets.

Saudi Arabia Solar Energy Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

Solar Photovoltaic (PV) Concentrated Solar Power (CSP)

Regional Insights:

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

• October 2025: Masdar was awarded 2 GW of solar projects under Saudi Arabia’s National Renewable Energy Program sixth round, comprising the 1,400 MW Najran plant and 600 MW Ad Darb facility on build, own, and operate basis with 25-year power purchase agreements.

• September 2024: ACWA Power secured USD 2.58 billion financing from a consortium of banks to develop three large-scale solar projects: Haden (2,000 MW), Muwyah (2,000 MW), and Al-Khushaybi (1,500 MW) in Makkah and Qassim provinces.

• August 2025: ACWA Power received commercial operation certifications for 2.79 GW of solar capacity across three projects: 1 GW of the 2 GW ArRass2 PV project and full 1,125 MW capacity of SAAD 2 Solar PV project in Qassim region.

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