$8.3 Billion Pledged to Supercharge Solar Growth
In a bold move that’s turning heads across the global energy sector, Saudi Arabia solar investment 2025 has reached a staggering $8.3 billion, marking a pivotal year in the kingdom’s clean energy journey. This massive financial commitment, led by ACWA Power in collaboration with Saudi Aramco and other partners, is fueling the development of 15 gigawatts (GW) of new renewable energy capacity, most of it solar.
This investment is a signal that the world’s largest oil exporter is serious about diversifying its energy portfolio and reducing its domestic reliance on fossil fuels.
12 GW of Solar Capacity Installed by End of 2025
From virtually no renewable infrastructure in 2020, Saudi Arabia has rapidly scaled up to 12 GW of installed solar capacity by the end of 2025. This milestone places the kingdom among the top 10 global markets for new solar installations this year, according to BloombergNEF data.
The pace of growth is unprecedented. “No country is going faster,” said Dave Jones of the climate think tank Ember. The scale and speed of Saudi Arabia solar investment 2025 reflect a strategic shift that few would have predicted just a few years ago.
Al Shuaibah 2: A 2 GW Beacon of Solar Ambition
A shining example of this transformation is the Al Shuaibah 2 solar farm, located about 60 miles south of Jeddah. With a capacity of over 2 GW, it currently stands as the largest solar installation in the country. Its rows of gleaming panels stretch across the desert, capturing the relentless Saudi sun to power approximately 350,000 homes.
Even larger projects are already in the pipeline, ensuring that Al Shuaibah 2’s reign as the largest may be short-lived.
Vision 2030: Clean Energy as a National Priority
The surge in Saudi Arabia solar investment 2025 is closely tied to the kingdom’s Vision 2030 strategy, which aims to generate 50% of electricity from renewables and the other half from natural gas. This dual approach is designed to reduce domestic oil consumption, freeing up more crude for export — a move that makes both economic and environmental sense.
Why Solar? Cost, Climate, and Capacity
Saudi Arabia’s solar push is driven by more than policy. The cost of solar technology has plummeted, with battery prices dropping 40% in 2024 alone. Add to that the kingdom’s abundant sunlight, vast tracts of cheap land, and proximity to major cities, and you have a recipe for solar success.
Large-scale projects also allow for economies of scale, reducing equipment and construction costs. As a result, solar has become one of the most cost-effective energy sources in the country.
Looking Ahead: 70 GW Projected by 2030
Analysts project that Saudi Arabia could reach over 70 GW of solar capacity by 2030. If realized, this would represent a sixfold increase from 2025 levels and significantly advance the country’s clean energy goals.
This projection underscores the momentum behind Saudi Arabia solar investment 2025, even as the kingdom continues to balance its role as a leading oil exporter.
A Petrostate’s Pivot with Global Implications
Despite its deep roots in oil, Saudi Arabia’s solar surge is reshaping its energy narrative. While fossil fuels remain central to its economy, the kingdom’s investment in renewables sends a powerful message: even the most oil-dependent nations see the future in clean energy.
As the world watches Saudi Arabia’s next moves, one thing is clear, Saudi Arabia solar investment 2025 is more than a trend. It’s a transformation in motion.
Also Read: Saudi Solar Energy Boom: 70 GW by 2030
