Solar energy has experienced a surge in Kingdom of Saudi Arabia (KSA) market, especially for its solar PV. This technology can convert solar radiation into electricity. Solar PV is in line with KSA’s efforts to diversify its energy, particularly in renewable energy sources. In addition, this market is seeing growth due to it being economically advantageous.
There are several types of solar PV. The one that is commonly used is silicon solar cell, because it is made from silicon. It is widely used due to its reasonable prices and efficiency. Meanwhile, thin-film solar cells are made from thin layers of semiconductor material. They are suitable for portable applications since they are flexible and lightweight. The next type is III-V Solar Cells, which are named after the elements that compose them.
Top players in the market include First Solar, Inc., Sharp Corporation, among others.
What Drives the Market?
The country is making many efforts to utilize renewable sources that propel the growth of the Saudi Arabia solar PV market.
1. Reduction of the carbon footprint
It is widely recognized that solar systems can produce much less carbon dioxide. Reflecting on this, KSA is forging ahead with its solar energy plan as an effort to reduce its carbon footprint.
2. Government investments in solar energy
Saudi government has launched various projects to increase the use of renewable energy in KSA. A research firm GMI Research noted that the government in 2023 would establish a solar capacity of 27.5 GW by 2030. This is in accordance with the solar energy plan and to reduce carbon emissions.
The firm also mentioned that KSA is expected to increase capacity to 58.7 GW by 2030 through the National Renewable Energy projects. From that total, solar energy will contribute 40 GW.
3. The expansion of solar PV installations
Based on the government’s plans, there has been an expansion in the installations of solar PV. This is in their efforts to meet power demand using solar energy. In addition, the decreased fossil-fuel dependency can further drive the solar PV installations.
What are the Constraints?
Despite its rapid growth, there are some constraints that can hamper the growth of this market.
- Alternate clean power sources
Solar is one of the popular clean power sources that is widely used. However, there are another clean power sources, such as wind, that can be a cheaper and less-maintained source of energy. However, for smaller-scale consumers, for instance residential installations, solar energy can be more affordable and accessible.
- Availability of fossil fuels
Fossil fuels can be another competitor for the growth of solar market. Solar power is on the winning side in terms of environmental impact. However, fossil fuels have been more reliable and available sources of energy. Unlike solar energy which dependent on weather conditions, fossil fuels are more consistent and stable in supplying energy.
In spite of the challenges, there are abundant opportunities on the horizon for the solar energy market and solar panels in KSA, as there are more innovations and integration into the energy ecosystem. Moreover, continued technological advancement can further fuel market growth.