Saudi Arabia Solar PV Panels Market - 2024-2031

Saudi Arabia Solar PV Panels Market - 2024-2031

Saudi Arabia Solar PV Panels Market reached US$ 1.60 billion in 2023 and is expected to reach US$ 3.51 billion by 2031, growing with a CAGR of 10.3% during the forecast period 2024-2031.

Saudi Arabia Solar Photovoltaic (PV) Panels market is undergoing rapid expansion, driven by the Kingdom's increasing focus on renewable energy as part of its Vision 2030 initiative. Solar PV panels, which convert sunlight into electricity, have emerged as a cornerstone of Saudi Arabia's efforts to diversify its energy sources and reduce dependence on fossil fuels. With abundant sunlight and vast desert land, the country is well-positioned to become a global leader in solar energy production.

The increasing adoption of Solar PV panels is bolstered by ambitious government policies, international partnerships and a growing recognition of the environmental and economic benefits of renewable energy. In particular, the introduction of large-scale solar projects such as the Sakaka PV IPP and the planned 2 GW Sudair Solar Plant exemplifies Saudi Arabia's commitment to achieving 50% of its energy from renewables by 2030, as outlined by the Ministry of Energy.

Dynamics

Government Initiatives and Renewable Energy Goals

Saudi Arabia’s renewable energy ambitions, under the guidance of Vision 2030 and the National Renewable Energy Program (NREP), have created a fertile environment for the growth of the Solar PV panels market. Substantial resources are being allocated by the Saudi government to the development of solar infrastructure in partnership with the Saudi Electricity Company (SEC) and the Renewable Energy Project Development Office (REPDO).

The Kingdom's target to install 58.7 GW of renewable energy capacity by 2030, with 40 GW of this capacity derived from solar PV panels. Saudi Arabia's installed solar PV capacity increased from 50 MW in 2019 to 400 MW in 2023, as reported by the International Renewable Energy Agency (IRENA). The Kingdom's dedication to accomplishing its objectives is evidenced by this growth trajectory.

Technological Advancements and Economic Diversification

The Solar PV panel market in Saudi Arabia is experiencing growth due to developments in solar technology, such as enhanced efficiency in photovoltaic cells and innovations in energy storage systems. The incorporation of bifacial solar panels, which harness sunlight from both surfaces, has markedly enhanced energy production. Furthermore, the integration of artificial intelligence and IoT in solar operations is enhancing energy generation and monitoring.

Moreover, the promotion of renewable energy, especially Solar PV panels, is a fundamental component of Saudi Arabia's strategy to diversify its economy and generate employment possibilities. The Ministry of Energy projects that the renewable energy sector creates approximately 77,000 jobs by 2030, predominantly from the solar photovoltaic business. Similarly, The Saudi Green Initiative further underscores the role of solar energy in fostering a sustainable economy while addressing climate change.

Limited Availability Panel Manufacturing Infrastructure With Intermittency of Solar Energy

The local manufacturing capabilities for solar components are still developing, which may lead to reliance on imports that could affect supply chain stability and pricing. Addressing these technological hurdles through local capacity building and innovation will be crucial for the long-term sustainability of the solar PV market in Saudi Arabia.

Furthermore, the Saudi government is investing in advanced battery storage solutions to mitigate the intermittency of solar energy issues, enabling the grid to store surplus energy for use during non-sunny periods. Projects like the Red Sea Development’s renewable energy storage initiative showcase progress in this area.

Segment Analysis

The Saudi Arabia solar PV panel market is segmented based on technology, grid, installation and application.

Rising Installation of Ground-Mounted Solar Due to Geographical Condition

Saudi Arabia is witnessing a significant surge in demand for ground-mounted solar panels, as they are ideal for utility-scale solar farms in the country’s vast desert landscapes. The country benefits from abundant sunlight, with one of the highest solar irradiation levels globally. This makes ground-mounted systems, which maximize land utilization for solar energy capture, particularly effective and efficient in the region.

Similarly, The Saudi government has implemented various policies and incentives to attract local and international investments in renewable energy. Key projects, such as the Sakaka PV plant, have demonstrated the viability of large-scale ground-mounted solar systems, encouraging further adoption. Furthermore, Ground-mounted solar panels offer scalability and are generally more cost-effective for large-scale installations compared to rooftop solutions. This aligns with the increasing demand for utility-scale projects, which are critical for achieving the country’s energy transition objectives.

Competitive Landscape

The major Saudi Arabia players in the market include ABB, Huawei, Mitsubishi Electric, Sharp, GTek Solar and JinkoSolar.

Sustainability Analysis

Saudi Arabia, which experiences high solar irradiance and vast desert land availability, is particularly well-suited for large-scale solar installations. Projects like the Sakaka PV plant and upcoming initiatives contribute to reducing the carbon footprint of the country. Furthermore, solar PV systems support sustainable water management by reducing the reliance on water-intensive energy sources, such as oil and gas.

The adoption of solar PV technology aligns with Saudi Arabia's goal to diversify its economy and reduce dependency on oil revenues. Solar energy provides a cost-effective solution to meet growing electricity demand while creating local job opportunities in manufacturing, installation and maintenance of PV panels. The establishment of domestic production facilities for solar panels and components also helps build a resilient local supply chain, further enhancing economic sustainability.

By Technology
• Monocrystalline Silicon
• Polycrystalline Silicon
• Thin-Film Technology
• Others

By Grid
• On-Grid
• Off-Grid
• Hybrid

By Installation
• Ground-Mounted
• Rooftop Solar Panels
• Floating Solar Panels
• Others

By Application
• Residential
• Commercial
• Industrial
• Utility-Scale

Recent Development
• In November 2024, Chinese solar power producer and project developer Jinko Power Technology Co., Ltd. is set to begin constructing a 400-MW photovoltaic (PV) power plant near Tabarjal, Saudi Arabia. The project, awarded under the fourth round of Saudi Arabia's National Renewable Energy Programme (NREP), has secured a power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC) and is expected to be operational in 2025.
• In July 2024, Saudi Arabia’s Public Investment Fund (PIF), through its fully-owned Renewable Energy Localization Company (RELC), has signed joint venture agreements with Chinese manufacturers JinkoSolar and TCL Zhonghuan Renewable Energy to establish 30GW of solar PV manufacturing capacity in the Kingdom, spanning ingots to modules.

Why Purchase the Report?
• To visualize the Saudi Arabia solar PV panel market segmentation based on technology, grid type, installation type and application.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the solar PV panel market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Saudi Arabia solar PV panel market report would provide approximately 30 tables, 30 figures and 182 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies