Saudi Solar Energy Expansion Surges to USD 49 Billion by 2030
Saudi Arabia’s ambitious energy diversification strategy is transforming its renewable energy landscape, with the Saudi Solar Energy Expansion forecasted to reach USD 49 billion by 2030. Valued at USD 6 billion in 2024, the market is projected to grow at a staggering CAGR of 42% from 2025–2030—solidifying the Kingdom’s position as a regional solar powerhouse.
Record-Breaking Solar Installations Power Up to 2.6 GW
A standout example of Saudi Arabia’s progress is the newly commissioned 2.6 GW Shuaibah Solar Power Plant—the largest in the Middle East. Located in Jeddah and developed by China Energy, ACWA Power, and Badeel, the facility is expected to generate over 282 billion kilowatt-hours during its 35-year lifecycle. It is designed to offset an estimated 20 million tons of CO₂ annually, embodying the dual goals of economic diversification and emissions reduction outlined in Vision 2030.
Residential Solar Gains Traction—Now 35% of Market Share
The Saudi Solar Energy Expansion isn’t confined to mega-projects. Residential adoption has surged, now accounting for over 35% of the total market. This growth is fueled by government incentives such as net metering, lower setup costs, and rising electricity tariffs. With solar PV systems offering payback periods of just 5–7 years, more homeowners are switching to solar to hedge against energy inflation and contribute to national sustainability goals.
Solar PV Dominates with 65% Market Share, CSP Trails
Among technology types, Solar Photovoltaic (PV) leads with a 65% market share, far surpassing Concentrated Solar Power (CSP). While CSP’s dependency on direct sunlight limits its scalability, PV systems are more versatile and economically viable—especially in regions with variable cloud cover. As of 2023, solar PV contributes over 3% of the Kingdom’s electricity generation capacity, a number expected to climb steeply in coming years.
Also Read: Meet the Shining Examples of Solar Powered Warehouses in Saudi Arabia
Vision 2030 Projects Fuel Long-Term Solar Growth
Saudi Arabia’s National Renewable Energy Program is actively pushing utility-scale projects to boost solar capacity. Key initiatives include the 2 GW Al Sadawi project and the 1 GW Al Masa’a plant, launched in early 2024. With the government pledging a massive USD 300 billion investment in renewable energy by 2030, the Kingdom aims to meet 50% of its electricity demand from clean sources—cementing the central role of Saudi Solar Energy Expansion in shaping the future energy landscape.
Oil Sector Resistance Remains a Strategic Hurdle
Despite this momentum, entrenched interests from the oil sector present a tangible challenge. Oil still contributes around 42% to the country’s GDP and 87% of export revenues. These financial dependencies, along with subsidies on fossil fuels, can delay solar energy adoption and dampen investor confidence. However, with the international spotlight on emissions reductions and Saudi Arabia’s growing participation in global green alliances, economic incentives may slowly tip the balance in favor of renewables.
Also Read: Sun-Powered Warehouses: Exploring the Operational Perks and Benefits of Solar Energy Integration
