Saudi Arabia Off-Grid Solar Energy Market

Saudi Arabia Off-Grid Solar Energy Market Overview:

The Saudi Arabia off-grid solar energy market size reached USD XX Million in 2024. Looking forward, IMARC Group expects the market to reach USD XX Million by 2033, exhibiting a growth rate (CAGR) of XX% during 2025-2033. The market is driven by rising energy demand in remote areas, government initiatives for sustainable energy, declining solar panel costs, and increasing awareness of carbon emissions. Enhanced rural electrification projects also contribute significantly, supporting the Saudi Arabia off-grid solar energy market share across various applications.

Saudi Arabia Off-Grid Solar Energy Market Trends:

Increased Deployment in Oil and Gas Fields

A notable development in the Saudi Arabia off-grid solar energy market is its expanding role in powering oil and gas field operations. Traditionally reliant on diesel generators, many remote extraction and processing facilities are transitioning to solar-based solutions to reduce fuel costs and environmental impact. Off-grid solar systems offer a stable and low-maintenance energy source suitable for harsh desert conditions. This trend is not only cost-effective but aligns with national efforts to reduce domestic oil consumption and promote energy efficiency within the hydrocarbon sector. By integrating solar technology into its most critical industry, Saudi Arabia is paving the way for broader adoption, significantly contributing to the Saudi Arabia off-grid solar energy market growth through strategic sectoral integration. For instance, in December 2024, TotalEnergies and Aljomaih Energy & Water Company secured a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) for the 300 MW Rabigh 2 solar project in Saudi Arabia. Located in Makkah Province, this project is part of the National Renewable Energy Program's fifth round, aiming to achieve a 50% share of renewable and gas-fired power by 2030. Scheduled for grid connection by 2026, Rabigh 2 aligns with Saudi Arabia's Vision 2030 to reduce dependence on liquid fuels for electricity generation.

Rise of Modular and Scalable Solar Solutions

Another significant trend shaping the Saudi Arabia off-grid solar energy market is the rise of modular and scalable solar power systems. These flexible systems cater to diverse energy requirements, ranging from small residential needs to larger commercial and agricultural applications. The modularity allows for quick deployment, especially in disaster recovery zones, newly developed rural areas, and temporary infrastructure projects. Their adaptability also simplifies maintenance and expansion as energy demands increase. This approach is especially relevant in a country characterized by vast, sparsely populated territories where grid connectivity is often unfeasible. As demand for resilient and adaptable power systems grows, modular solar solutions are accelerating the Saudi Arabia off-grid solar energy market growth by meeting evolving consumer and infrastructural needs. For instance, in August 2024, Saudi Arabia announced the construction of the world’s largest off-grid solar-storage microgrid for the Red Sea Project, featuring 400 MW of solar power and 1.3 GWh of energy storage. Developed by Red Sea Global and ACWA Power, and powered by Huawei’s smart energy systems, the project aims to supply 100% clean energy to a luxury tourism destination. It supports Saudi Vision 2030 by integrating advanced renewable technologies and ensuring sustainable, off-grid power for resorts, residential units, and infrastructure in Tabuk province.

Saudi Arabia Off-Grid Solar Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country/regional levels for 2025-2033. Our report has categorized the market based on end user.

End User Insights: 

• Residential
• Commercial 
• Industrial 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes residential, commercial, and industrial. 

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Off-Grid Solar Energy Market News:

• In March 2025, Tanmiah Food Company partnered with Emerge, a joint venture between Masdar and EDF, to develop a 3 MWp solar power plant at its Haradh facility in Saudi Arabia. The plant will provide 35% of the facility's electricity, cutting 3,850 tonnes of CO₂ annually. Emerge will handle financing, design, and maintenance for 25 years with no upfront costs. This collaboration supports Saudi Vision 2030 and advances decarbonization in the agricultural sector, aligning with Tanmiah's goal of becoming a sustainable halal protein leader.
• In February 2025, ACWA Power commenced full commercial operations of the 2 GW Al Shuaibah 2 solar PV plant in Saudi Arabia’s Makkah Province, receiving certification from the Saudi Power Procurement Company. Alongside the 600 MW Al Shuaibah 1 plant, these projects contribute to Saudi Arabia’s goal of reaching 50% renewables by 2030.
• In November 2024, Masdar-led consortium, including EDF Group, secured financing for a USD 1.5 Billion off-grid utility facility at Saudi Arabia's Amaala project. The facility, which includes a 250 MW solar park, 700 MWh battery storage, and a desalination plant, will provide renewable energy and water to the luxury zero-carbon Amaala City. Designed to save 350,000 tons of CO2 annually, it supports Saudi Vision 2030. The project’s financial close was backed by several local and global banks, with a 25-year concession agreement in place.

Saudi Arabia Off-Grid Solar Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia off-grid solar energy market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia off-grid solar energy market on the basis of end user?
• What is the breakup of the Saudi Arabia off-grid solar energy market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia off-grid solar energy market? 
• What are the key driving factors and challenges in the Saudi Arabia off-grid solar energy market?
• What is the structure of the Saudi Arabia off-grid solar energy market and who are the key players?
• What is the degree of competition in the Saudi Arabia off-grid solar energy market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia off-grid solar energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia off-grid solar energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia off-grid solar energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.