Saudi Arabia Solar Energy Storage Market Size to Hit USD 728.01 Million by 2033 | CAGR of 17.10%

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 Backing

Saudi Arabia’s government is doubling down on renewable energy through Vision 2030, making solar energy storage a priority to diversify from oil. The National Renewable Energy Program (NREP) has unlocked billions in investments, with solar projects attracting over SAR 18 billion, according to the Saudi Statistical Authority. The Saudi Green Initiative (SGI) pushes for grid stability, incentivizing battery storage with subsidies and low-cost financing. For example, the Shuaiba 1 solar project, with its 2.6 GWh battery system, powers 90,000 homes at just 3.9 halalas per kWh. These policies, combined with streamlined permitting, are drawing global players like ACWA Power, which signed $8.3 billion in deals for solar and storage projects, fueling massive industry growth.

• Surge in Solar Project Development

The Kingdom’s solar energy boom is driving demand for storage to manage intermittent power. With 6,151 MW of solar capacity from nine projects, storage systems are critical for grid reliability. The Saudi Power Procurement Company (SPPC) has secured agreements for 12 GW of solar projects, many integrating battery energy storage systems (BESS). For instance, the Bisha BESS by BYD, with 2.6 GWh capacity, supports 90,000 households. These projects cut energy costs by up to 20% compared to traditional sources. Companies like Trina Solar are supplying advanced storage tech, while local manufacturing mandates, like 20% locally made PV panels for the Al-Khushaybi project, boost the ecosystem, creating jobs and driving investment in storage infrastructure.

• Low-Cost Energy and Infrastructure Investment

Saudi Arabia’s cheap electricity and massive infrastructure upgrades are supercharging the solar storage market. With energy costs at 3.9–11.18 halalas per kWh, among the lowest globally, storage systems are more cost-effective. The Ministry of Energy is investing heavily in smart grids and storage, with $30 billion planned for grid integration. Projects like NEOM’s 4 GW solar and storage setup show how abundant solar irradiance and land availability make large-scale systems viable. ACWA Power’s partnerships with global firms like TotalEnergies for projects like Rabigh 2 are scaling up storage capacity. This combo of low costs and heavy investment—coupled with over 1,140,800 homes powered by renewables—makes the Kingdom a hotspot for solar storage growth.

Key Trends in the Saudi Arabia Solar Energy Storage Market

• Large-Scale Battery Energy Storage Systems (BESS)

Big battery systems are taking off in Saudi Arabia to stabilize solar power output. The Kingdom is set to install 11 GWh of large-scale storage, with projects like the 2.6 GWh Bisha BESS by BYD powering 90,000 homes. These systems store excess solar energy during the day for nighttime use, cutting reliance on fossil fuels. The SPPC’s contracts for 12.5 GWh more in storage capacity highlight the scale of this trend. Companies like Saudi Electricity Company are integrating BESS into projects like the 2 GW Al Sadawi Solar Project, boosting grid reliability by 15%. This trend aligns with Vision 2030’s push for 50% renewable energy, making BESS a cornerstone for sustainable power delivery.

• Integration with Smart Grids

Smart grids are transforming how solar energy storage works in Saudi Arabia. The Ministry of Energy is rolling out AI-powered grid systems to optimize energy flow, with over $30 billion earmarked for modernization. These grids pair with storage to balance supply and demand, reducing outages by up to 25%. For example, NEOM’s grid uses storage to manage 4 GW of solar and wind, ensuring zero downtime for its smart city. Local firms like ACWA Power are deploying smart tech in projects like Sudair Solar PV, which uses 1.5 GW of capacity with integrated storage. This trend is critical for handling the Kingdom’s growing energy needs, especially in urban hubs like Riyadh, where demand is spiking.

• Green Hydrogen and Storage Synergy

Green hydrogen projects are boosting the solar storage market by leveraging excess solar energy. NEOM’s Green Hydrogen Project, powered by 4 GW of renewables, uses storage to produce 600 tonnes of hydrogen daily. This synergy stabilizes solar output while creating a new revenue stream. The Saudi Green Initiative supports this trend with incentives, driving investments like ACWA Power’s $8.3 billion in renewable projects with storage components. Over 60% of new solar projects now include storage for hydrogen production, with companies like Masdar leading the charge. This trend is creating thousands of jobs and positioning Saudi Arabia as a global leader in clean fuels, with storage systems ensuring efficiency and scalability.

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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 poised for a bright future, driven by Vision 2030 and massive investments. With 11 GWh of storage capacity already planned and projects like NEOM pushing for 4 GW of integrated solar and storage, the Kingdom is setting a global benchmark. The SPPC’s 38,713 MW of tendered renewable capacity, including 12.5 GWh of storage, signals robust growth. Low energy costs at 3.9 halalas per kWh and $30 billion in grid upgrades will keep attracting giants like ACWA Power and Trina Solar. Challenges like grid integration and water scarcity persist, but with over 1,000 engineers trained in renewable tech annually, the talent pool is growing. This momentum will cement Saudi Arabia’s role as a renewable energy leader.

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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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