Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 968.24 Million

CAGR (2023-2028)

17.6%

Fastest Growing Segment

crystalline silicon PV

Largest Market

Al Riyadh Region


Market Overview

The Saudi Arabia rooftop solar market achieved a valuation of USD 968.24 million in 2022 and is poised for substantial growth throughout the forecast period, with a projected Compound Annual Growth Rate (CAGR) of 17.6% until 2028. The market's expansion is primarily driven by government incentives, renewable energy targets, and the country's abundant sunlight, all of which contribute to the rapid development of the Saudi Arabia rooftop solar sector. Underpinning these drivers is the overarching framework of Vision 2030, which emphasizes energy diversification and sustainability. This strategic vision, coupled with concrete government incentives, fosters an environment conducive to solar investment, rendering rooftop installations financially appealing. The bountiful solar resources inherent to Saudi Arabia's geography further bolster this momentum, enabling maximum solar energy production. The convergence of these drivers amplifies the adoption of sustainable energy practices, economic advancement, and a reduced reliance on conventional fossil fuels.

Key Market Drivers

Renewable Energy Goals Driving Market Growth: Renewable energy goals are the pivotal driving force behind the burgeoning Saudi Arabia rooftop solar market. As Saudi Arabia embarks on its transformative Vision 2030 plan, its commitment to renewable energy becomes a rallying call for sustainable energy endeavors. This unequivocal mandate acts as a catalyst for a significant uptick in rooftop solar installations. By steadfastly pursuing these renewable energy targets, Saudi Arabia signals its intent to move away from traditional fossil fuels and embrace cleaner, more sustainable energy sources. This commitment aligns with global climate change mitigation efforts while simultaneously laying the foundation for economic diversification and energy autonomy.

The influence of renewable energy goals resonates across the market landscape. Investors are emboldened by unwavering governmental support, recognizing the stability and long-term viability of rooftop solar projects. Regulatory frameworks are tailored to incentivize adoption, streamlining processes and incorporating net metering and grid integration standards that facilitate smooth rooftop solar implementation. The pursuit of these ambitious goals fuels innovation, propelling advancements in solar technology, energy storage solutions, and smart grid integration. This technological evolution enhances the economic appeal of solar energy to both businesses and individuals. Critically, the pursuit of renewable energy goals fosters job creation across the solar spectrum, contributing to skilled installation professionals and pioneering researchers driving solar innovation.

Furthermore, Saudi Arabia's embrace of renewable energy enhances energy security by reducing reliance on fossil fuel imports. This shift toward domestic energy production diminishes vulnerabilities to supply disruptions and price fluctuations, positioning the country as a global leader in sustainable energy practices. In essence, Saudi Arabia's commitment to renewable energy goals is the linchpin of its rooftop solar market expansion. By forging a clear path toward a greener future, the nation propels economic growth, energy security, and innovation, leaving a lasting legacy of environmental stewardship.

Government Incentives Propelling Market Growth: Government incentives are poised to play a pivotal role in propelling the Saudi Arabia rooftop solar market into a new era of growth and sustainability. As the country seeks to diversify its energy sources and reduce its carbon footprint, these incentives serve as a potent catalyst for widespread adoption of solar installations. Anchored in a strategic focus on incentivizing renewable energy, the Saudi government demonstrates its commitment to nurturing a thriving solar ecosystem. Financial incentives, including subsidies, tax advantages, and favorable financing options, substantially lower entry barriers for residential and commercial rooftop solar projects. These measures not only alleviate initial investment costs but also render solar energy an economically viable choice for a broader spectrum of consumers.

The appeal of government incentives goes beyond financial gains alone. They provide confidence and reassurance that authorities are actively fostering a flourishing solar market. This assurance encourages investors to allocate resources, secure in the knowledge that the regulatory framework supports their endeavors. Moreover, these incentives act as a catalyst for job creation, as the expansion of the rooftop solar market necessitates a skilled workforce for installation, maintenance, and technical support. This job growth stimulates local economies and solidifies Saudi Arabia's position as a leader in renewable energy. The effect of government incentives permeates society, triggering heightened public awareness and engagement. As individuals observe their peers embracing solar solutions, a sense of collective environmental responsibility takes root. This ripple effect, spurred by incentives, accelerates the transition to clean energy practices.

Ultimately, government incentives form the cornerstone of Saudi Arabia's rooftop solar market growth. By cultivating a supportive environment for solar adoption, the government propels economic gains, job creation, and a trajectory towards a sustainable energy future. As these incentives continue to catalyze progress, Saudi Arabia stands poised to become an exemplar for regions aspiring to harness solar energy on their rooftops.

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Key Market Challenges

Shortage of Technical Expertise: The growth of the Saudi Arabia rooftop solar market is hampered by a shortage of technical expertise in the field of solar energy. While the nation's renewable energy goals and abundant sunlight create a conducive environment for solar adoption, the lack of a skilled workforce presents a significant challenge. The successful implementation and operation of rooftop solar installations necessitate specialized knowledge in areas such as system design, engineering, installation, and maintenance. However, the scarcity of professionals with hands-on experience and training in these domains can lead to delays, suboptimal system performance, and increased costs. This deficiency in technical expertise affects both residential and commercial segments. Residential consumers may struggle to find qualified professionals for effective solar system installation and maintenance. Similarly, businesses seeking to integrate solar solutions into their operations may encounter difficulties in sourcing skilled personnel.

Addressing this challenge requires investments in educational and training programs that focus on solar technology and installation practices. Collaborations between educational institutions, industry associations, and government agencies can foster the development of a skilled workforce. Additionally, incentivizing professionals to enter the solar energy sector and promoting knowledge sharing among industry players can contribute to building the necessary technical expertise. By nurturing a skilled workforce, Saudi Arabia can mitigate the constraint posed by the shortage of technical expertise, thereby accelerating the growth of its rooftop solar market. This, in turn, will facilitate the nation's transition towards a sustainable and diversified energy landscape in alignment with its long-term vision.

Energy Storage Infrastructure: The potential of the Saudi Arabia rooftop solar market is limited by the insufficient energy storage infrastructure. While the nation boasts abundant sunlight, the intermittent nature of solar energy generation necessitates effective energy storage solutions. The current lack of robust energy storage systems presents challenges in harnessing and utilizing solar power efficiently. Energy storage plays a pivotal role in bridging the gap between peak solar energy production and varying demand patterns. Without adequate storage mechanisms, surplus energy generated during the day cannot be efficiently stored for use during nighttime or cloudy periods, leading to underutilization of solar potential and reliance on conventional power sources.

The deficiency in energy storage infrastructure hampers the scalability of rooftop solar installations, especially when excess energy cannot be efficiently stored and dispatched when needed. This constraint affects grid stability and limits the ability of solar systems to contribute to consistent and reliable power supply. To overcome this challenge, investments and initiatives are required to develop and deploy energy storage technologies, such as batteries and other advanced storage solutions. Collaborations between research institutions, government entities, and private sector stakeholders can facilitate the adoption of energy storage solutions tailored to Saudi Arabia's energy landscape. By addressing the energy storage infrastructure constraint, Saudi Arabia can unlock the full potential of its rooftop solar market. A robust storage ecosystem will enable greater energy independence, enhanced grid stability, and optimized utilization of solar resources, aligning with the country's renewable energy goals and fostering a more sustainable energy future.

Key Market Trends

Growth in the Commercial and Industrial Segment: The trajectory of the Saudi Arabia rooftop solar market is unmistakably propelled by the burgeoning commercial and industrial sectors. As businesses across diverse industries seek avenues to optimize operations and enhance sustainability, rooftop solar installations emerge as a transformative solution. The prospect of reduced energy costs serves as a pivotal driver, empowering businesses to harness solar energy to power their operations, thereby reducing reliance on traditional grid electricity and mitigating escalating energy expenses. This cost-saving potential assumes even greater significance in energy-intensive sectors, such as manufacturing and agriculture, where rooftop spaces can be effectively harnessed for significant solar power generation. Additionally, the momentum of corporate social responsibility (CSR) initiatives plays a pivotal role. Businesses prioritize green practices to enhance their image and fulfill environmental commitments. Rooftop solar installations exemplify such initiatives, symbolizing a proactive stance towards carbon footprint reduction and adoption of clean energy practices. Government incentives tailored to the commercial and industrial sectors provide further impetus. Tax benefits, financing incentives, and supportive policies amplify the attractiveness of solar solutions.

As commercial and industrial growth gains momentum, the Saudi Arabian rooftop solar market is poised for substantial expansion. This trend not only reflects astute business acumen in harnessing solar energy but also embodies a larger commitment to a sustainable and diversified energy landscape. In tandem, businesses advance their own prosperity while catalyzing the nation's trajectory towards a greener future.

Partnerships and Investments: The trajectory of the Saudi Arabia rooftop solar market is distinctively shaped by strategic partnerships and targeted investments. As the nation progresses fervently towards its renewable energy goals, collaborations between local and international entities assume a pivotal role in driving progress. These partnerships amalgamate diverse expertise, technological innovation, and financial support to collectively propel the rooftop solar sector forward. International renewable energy firms recognize the immense potential of the Saudi Arabian market and are forging alliances with local counterparts to capitalize on this opportunity. Such collaborations infuse valuable knowledge and cutting-edge technology into the market while also amplifying global best practices in solar energy implementation.

Simultaneously, investments directed towards the rooftop solar domain catalyze transformative growth. Financial backing from private equity, venture capital, and governmental sources fosters innovation, research, and scalability. These investments accelerate the development of solar technology, enhance infrastructure, and drive down costs, making rooftop solar installations increasingly accessible and economically viable. The synergy between partnerships and investments in the Saudi Arabia rooftop solar market is pivotal. These elements not only drive economic expansion but also underscore the nation's dedication to sustainable energy practices. As key stakeholders collaborate and channel resources into this dynamic sector, Saudi Arabia emerges as a model for other regions aspiring to harness the power of solar energy on their rooftops.

Segmental Insights

Technology Type Insights: The crystalline silicon PV segment has established its dominance in the Saudi Arabia Rooftop Solar market in 2022 and is projected to maintain this position throughout the forecast period. Crystalline panels are the most common type of solar panels used in residential and commercial applications due to their higher efficiency and reliability.

Grid-type Insights: The connected segment has established its dominance in the Saudi Arabia Rooftop Solar market in 2022. In the Saudi Arabia rooftop solar market, the grid-connected segment is poised to dominate. Government incentives, feed-in tariffs, and reliable energy access make grid-connected installations attractive. They enable surplus energy injection into the grid, offering economic benefits for users. With a focus on energy security and grid stability, grid-connected systems align with Saudi Arabia's energy goals.

End-User Type Insights: The commercial and industrial segment has emerged as the dominant segment in the Saudi Arabia Rooftop Solar market. Due to being one of the largest energy consumers, the commercial and industrial sector typically pays higher electricity expenses. The industry has the most advantageous use profiles and stands to gain from the installation of rooftop solar PV systems across substantial roof areas.

Regional Insights: The Al Riyadh region has established itself as the leader in the Saudi Arabia Rooftop Solar market with a significant revenue share in 2022. The Al Riyadh region leads the Saudi Arabia Rooftop Solar market due to its economic prominence, high population density, and strategic government initiatives. With a dense urban landscape, ample rooftop spaces, and significant energy demand, Al Riyadh provides an ideal setting for widespread solar adoption. Government incentives and policies tailored to the region further encourage businesses and residents to invest in rooftop solar installations. This, coupled with corporate engagement, educational institutions, and increased public awareness, solidifies Al Riyadh's position as a frontrunner in driving the growth and success of the Saudi Arabian rooftop solar market.

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Recent Developments

  • The 400 MW (DC) Rabigh Solar PV IPP project in Saudi Arabia received the LONGia module supply contract from China Energy Engineering Group and Guangdong Power Engineering Company (GPEC) in June 2022. This solar PV project is currently under development, and LONGiHi-MO 5(72C) solar modules are anticipated to be installed. The project's location is in Rabigh Industrial City, in Saudi Arabia's western Makkah Province, around 150 km west of Jeddah.
  • A contract was given to China's Jinko Power in March 2022 as part of the third round of Saudi Arabia's National Renewable Energy Plan (NREP) to create the 300MW Saad photovoltaic (PV) solar project. Jinko Power and Jinko Power Dhafra Holding inked a 25-year power purchase agreement (PPA) with Saudi Power Procurement Company as a part of the competitive tendering process (SPPC). For the project, the consortium provided a price of SAR 5.56255/kWh.

Key Market Players

  • ACWA Power Company
  • Alfanar Group
  • Abu Dhabi Future Energy Company (Masdar)
  • EDF Renewables
  • Saudi Electricity Company
  • Engie SA
  • JinkoSolar Holding Co. Ltd
  • Enel SpA

 By Technology

By Grid-type

By End-use

By Region

       Thin Film

       Crystalline Silicon

       Grid Connected

       Off-grid

       Residential

       Commercial

       Industrial

       Al Riyadh

       Jeddah

       Eastern Province

       Rest of Saudi Arabia


Report Scope:

In this report, the Saudi Arabia Rooftop Solar market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

            ·         Saudi Arabia Rooftop Solar market, By Technology:

o   Thin Film

o   Crystalline Silicon

                ·         Saudi Arabia Rooftop Solar market, By Grid-type:

o   Grid Connected

o   Off-grid

                ·         Saudi Arabia Rooftop Solar market