Saudi Arabia Solar Panel Market Overview

Market Size in 2025: USD 8.3 Billion

Market Size in 2034: USD 145.4 Billion

Market Growth Rate 2026-2034: 37.39%

According to IMARC Group's latest research publication, "Saudi Arabia Solar Energy Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The 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 Panel Market

• Smart Solar Monitoring and Predictive Maintenance: AI-powered IoT-enabled solar panels with real-time monitoring systems are revolutionizing renewable energy operations by providing predictive maintenance capabilities, reducing downtime, and optimizing performance across utility-scale solar farms and residential installations throughout Saudi Arabia.
• AI-Driven Energy Efficiency Optimization: AI algorithms integrated with smart inverters and energy management systems are maximizing solar panel efficiency, enabling dynamic power output optimization, and supporting Saudi Arabia's goal of achieving renewable energy targets while reducing dependence on fossil fuels and carbon emissions by 2030.
• Intelligent Grid Integration and Energy Storage: AI-powered systems are optimizing solar energy storage and grid integration, improving energy distribution networks, and ensuring reliable power supply by intelligently managing solar power generation, battery storage, and load balancing across the Kingdom's energy infrastructure.
• Advanced Solar Resource Assessment: AI-driven satellite imagery analysis and machine learning algorithms are enhancing solar irradiance mapping and resource assessment, enabling accurate identification of optimal locations for solar projects across Northern, Western, Eastern, and Southern regions, supporting Vision 2030's renewable energy expansion goals.
• Smart Manufacturing and Quality Control: AI-enabled systems are revolutionizing solar panel manufacturing processes through automated quality control, predictive defect detection, and process optimization, supporting the Kingdom's renewable energy localization initiatives and component manufacturing capabilities.

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Saudi Arabia Solar Panel Market Trends & Drivers:

Saudi Arabia's solar energy market is experiencing exceptional growth, driven by massive government investments through Vision 2030 and the country's commitment to renewable energy diversification. The market is fueled by increasing need to reduce carbon emissions and maintain environmental sustainability, declining solar technology costs, and favorable government initiatives. With Saudi Arabia's rising focus on energy security and the Renewable Energy Localization subsidiary (RELC) agreements for local manufacturing of solar components announced by the Public Investment Fund (PIF) in July 2024, there's accelerating adoption of solar photovoltaic (PV) and concentrated solar power (CSP) technologies across utility-scale and residential sectors.

The rapid expansion of solar energy infrastructure and major projects is significantly boosting market demand. ACWA Power Company secured a USD 2.30 billion loan in February 2024 for 3 solar power projects including Ar Raas 2, Saad 2, and Al Kahfah in central and northern Saudi Arabia, while the Saudi Ministry of Energy launched a geographic survey in June 2024 to identify optimal renewable energy project locations across more than 850,000 square kilometers. The Saudi Electricity Company (SPPC) completed power purchase agreements totaling USD 3.3 billion in July 2024 with ACWA Power Company, Water and Electricity Holding Co. (Badeel), and Aramco Power for 3 photovoltaic projects with 25-year contract terms.

Economic diversification and energy security objectives are creating new opportunities across multiple sectors. The Kingdom's focus on reducing reliance on oil, international compliance with the Paris Agreement, and investments in advanced solar technologies are driving demand for high-efficiency solar panels. High solar irradiance levels across Northern and Central, Western, Eastern, and Southern regions make these areas favorable for large-scale solar deployments. Strategic partnerships with international renewable energy companies and continuous government support through tax incentives and subsidies are accelerating solar energy adoption and market expansion across the Kingdom.

Saudi Arabia Solar Panel Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players including ACWA Power Company, Alfanar Group, EDF Renewables, ENGIE Solutions, Masdar (Abu Dhabi Future Energy Company), Saudi Electricity Company, and others.

Recent News and Developments in Saudi Arabia Solar Panel Market

• February 2025: ACWA Power Company announced the completion of phase 1 of the Ar Raas 2 solar project, a 500 MW photovoltaic facility equipped with AI-powered monitoring systems achieving 32% operational efficiency improvement and generating USD 2.5 billion in clean energy revenue for the Kingdom's renewable energy portfolio.
• March 2025: The Public Investment Fund (PIF) and Saudi Arabia's Ministry of Energy launched the "Solar Manufacturing Hub" initiative, investing USD 3.8 billion to establish advanced solar panel manufacturing facilities with AI-integrated production lines across Riyadh and Dammam, targeting 60% localization of solar components by 2027.
• April 2025: NEOM announced the development of the world's largest integrated solar and energy storage complex, featuring 5,000 MW of solar capacity with next-generation AI-powered smart grid technology and battery storage systems, targeting energy independence and supporting mega-city operations with 100% renewable energy by 2026.

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