Saudi Arabia Solar Energy Storage Market Overview

Market Size in 2024: USD 160.43 Million

Market Size in 2033: USD 728.01 Million

Market Growth Rate 2025-2033: 17.10%

According to IMARC Group's latest research publication, "Saudi Arabia Solar Energy Storage Market Size, Share, Trends and Forecast by Type, Installation, and Region, 2025-2033", The Saudi Arabia solar energy storage market size reached USD 160.43 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 728.01 Million by 2033, exhibiting a growth rate (CAGR) of 17.10% during 2025-2033. 

Growth Factors in the Saudi Arabia Solar Energy Storage Market

• Vision 2030 and Government Support

Saudi Arabia’s Vision 2030 is fueling the solar energy storage industry by prioritizing renewable energy to diversify the economy. The National Renewable Energy Program (NREP) targets 58.7 GW of renewable capacity, with solar as a cornerstone. The government offers subsidies, tax breaks, and long-term Power Purchase Agreements (PPAs), attracting investments like ACWA Power’s USD 2.3 billion funding for 4.55 GW solar projects. The Public Investment Fund (PIF) supports local manufacturing, with agreements signed for solar component production. In 2024, the solar market was valued at USD 2.5 billion, with storage systems critical for grid stability. These policies create a fertile ground for storage solutions, ensuring reliable energy supply and driving market growth across the Kingdom.

• Rising Demand for Grid Stability

With solar power’s rise, Saudi Arabia needs energy storage to manage its intermittent nature. The Kingdom’s 2.7 GW installed solar capacity, including the 1.5 GW Sudair project, demands robust storage to balance peak loads. Lithium-ion batteries, dominating 90% of the storage market, store excess daytime energy for nighttime use, reducing fossil fuel reliance. The Saudi Energy Efficiency Centre’s plan to cut power intensity by 30% emphasizes efficient energy use, boosting storage demand. Projects like the King Salman Energy Park integrate storage to buffer peak usage, supporting 35% average electricity savings in buildings. This focus on grid reliability, backed by investments in smart grid tech, is making solar energy storage a critical driver of the renewable energy transition.

• Technological Advancements in Storage

Advancements in battery technology are supercharging Saudi Arabia’s solar energy storage market. Lithium-ion batteries, now more cost-effective and durable, have slashed costs, with levelized cost of energy (LCOE) for rooftop PV systems at USD 0.0445 per kWh. Innovations like GlassPoint’s thermal storage for the Ma’aden project cut emissions in industrial applications. The Kingdom’s focus on R&D, supported by partnerships with firms like JinkoSolar and LONGi, is boosting storage efficiency. For instance, hybrid PV-battery systems achieve performance ratios of 77–84.27%. Government incentives for tech development, alongside collaborations with global players, are driving adoption. These advancements make storage solutions more viable, supporting large-scale solar projects and enhancing energy reliability across Saudi Arabia’s grid.

Key Trends in the Saudi Arabia Solar Energy Storage Market

• Growth of Hybrid Energy Systems

Hybrid systems blending solar with advanced storage are gaining momentum in Saudi Arabia. These systems, like the NEOM project’s 4 GW green hydrogen facility, combine solar PV with batteries to ensure consistent power supply. With solar contributing 82.6% of renewable capacity, hybrids optimize energy use, saving up to 43% in residential buildings. The Al Shuaibah projects, with 2.6 GW capacity, integrate lithium-ion storage for grid stability. The government’s push for smart grids, backed by the NREP, supports this trend by enabling seamless energy distribution. Companies like ACWA Power are leading, with hybrid setups reducing reliance on fossil fuels. This trend is transforming how Saudi Arabia harnesses solar power, making energy systems more resilient and efficient.

• Focus on Green Hydrogen Integration

Solar energy storage is powering Saudi Arabia’s green hydrogen ambitions, a trend reshaping the energy landscape. The NEOM Green Hydrogen facility uses 4 GW of solar with storage to produce 2.9 million tons of hydrogen annually. Lithium-ion batteries store excess solar energy to ensure continuous production, even during low sunlight. The PIF’s investments in local manufacturing, like agreements for solar and storage components, support this trend. Posts on X highlight buzz around green hydrogen projects, reflecting industry excitement. By pairing solar storage with hydrogen production, Saudi Arabia is creating a sustainable fuel market, cutting emissions and boosting exports. This trend positions the Kingdom as a global leader in clean energy innovation.

• Decentralized Solar Storage Solutions

Decentralized solar storage systems are emerging as a game-changer in Saudi Arabia, especially for rooftops and small-scale projects. Rooftop PV systems, with utilization rates of 21–49%, save 16–21% energy on campuses and 43% in homes. Regulations allowing net-metering, introduced by the Electricity and Cogeneration Regulatory Authority, let consumers offset grid power with stored solar energy. Projects like Saudi Aramco’s PV carport system use decentralized storage to power facilities efficiently. With crystalline silicon PV holding 55% market share, these systems are cost-effective and reliable. Government incentives, like favorable tariffs, are driving adoption in cities like Riyadh. This trend empowers businesses and households, reducing grid pressure and boosting sustainable energy use nationwide.

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Saudi Arabia Solar Energy Storage Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Lead Acid
• Lithium Ion
• Flow Battery
• Others

Installation Insights:

• On grid
• Off grid

Regional Analysis:

• 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.

Future Outlook

Saudi Arabia’s solar energy storage market is set for explosive growth, driven by Vision 2030’s push for 58.7 GW of renewable capacity, with solar leading at 40 GW. Projects like Sudair (1.5 GW) and Al Shuaibah (2.6 GW) highlight the need for storage to ensure grid reliability. The market, valued at USD 160.43 million in 2024, is boosted by lithium-ion battery advancements, achieving LCOE as low as USD 0.0445 per kWh. Government incentives, like subsidies and PPAs, alongside PIF-backed local manufacturing, will attract global players like JinkoSolar. Trends like green hydrogen and decentralized systems, as seen in NEOM’s 4 GW project, will diversify applications. As Saudi Arabia aims for 50% renewable energy by 2030, solar storage will be pivotal, cementing the Kingdom’s role as a clean energy leader.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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