By eSEO Solutions on August 1, 2025 in Business Setup Services
Saudi Arabia is rapidly emerging as a global leader in renewable energy, with high solar irradiance levels, vast open land, and strong grid expansion plans. The Kingdom receives an average of 5,600 Wh/m² of solar energy daily, making it one of the world’s richest locations for solar development. Consistent wind corridors in the north-western and eastern regions add to this advantage. Combined with large-scale infrastructure investments and progressive energy policies, 2025 presents a prime opportunity for renewable energy investment and business setup in Saudi Arabia.
Renewable Energy Framework in Saudi Arabia
Under Vision 2030, Saudi Arabia aims to generate 50% of its electricity from renewable sources by 2030. This marks a significant leap from just 2.7 GW of renewable capacity in 2023 (around 1% of total electricity). By 2025, installed capacity is expected to almost double to 12.7 GW, alongside battery storage capacity reaching 8 GWh.
Government-backed tenders, private-sector involvement, and reforms allowing 100% foreign ownership in many sectors have made business setup in Saudi Arabia’s energy sector more accessible for global investors.
Market Growth and Investment Drivers
Recent agreements have unlocked 15 GW of new solar and wind projects worth £6.5 billion across multiple regions. The renewable energy market is forecast to grow from 7.88 GW in 2024 to 29.3 GW by 2030, at a CAGR exceeding 23%.
Key growth drivers include:
- Stable Power Purchase Agreements (PPAs) with competitive tariffs.
- Gradual removal of energy subsidies, promoting the adoption of cost-saving solar systems.
- Tax exemptions and customs duty reductions for renewable energy components.
- Localisation initiatives encouraging domestic manufacturing of solar panels, wind turbines, and battery systems.
Key Opportunities for Investors in 2025
- Utility-Scale Solar and Wind Farms – 12 GW solar and 3 GW wind projects, ideal for EPC contractors, technology providers, and financiers. Advanced technologies such as bifacial panels and single-axis trackers can boost efficiency.
- Battery Energy Storage Systems (BESS) – Storage capacity is expected to quadruple by the end of 2025, opening opportunities for suppliers, integrators, and operators.
- Green Hydrogen Production – The first large-scale green hydrogen plant will launch in 2025, driving demand for electrolysers, storage infrastructure, and logistics solutions.
- Commercial and Industrial Rooftop Solar – Rising tariffs for commercial users are increasing rooftop solar adoption, delivering operational savings and sustainability credentials.
- Local Manufacturing and Supply Chain Development – Policies encourage local production of renewable components, creating joint venture and supply opportunities.
Why 2025 Is the Right Time to Enter
- Declining costs in solar PV, wind, and battery storage technologies.
- Transparent government tender processes.
- Strong financing appetite from domestic and global lenders.
- Expanding grid infrastructure to support renewable integration.
Innovation SA: Your Partner in Renewable Energy Business Setup
Innovation SA offers end-to-end support for setting up your renewable energy business in Saudi Arabia.
Our services include:
- Business Setup & Licensing – Navigating Ministry of Investment approvals, energy permits, and Vision 2030 compliance.
- Regulatory Compliance – Managing ZATCA registration, tax obligations, and Saudisation requirements.
- Corporate Support Services – PRO services, immigration, accounting, and payroll solutions tailored to the energy sector.
- Local Market Integration – Partnering with local suppliers, EPCs, and service providers to meet localisation targets.
- Advisory & Expansion Planning – Investment structuring, risk analysis, and long-term operational strategies.
Why Choose Innovation SA
- Over a decade of expertise in Saudi Arabia’s renewable energy sector.
- Strong ties with government bodies and industry stakeholders.
- Proven record of smooth, timely market entry.
- In-depth knowledge of compliance to help secure incentives while ensuring efficiency.
Get in Touch
Start your renewable energy business setup in Saudi Arabia today. Contact Innovation SA for expert guidance, from licensing to market integration, and capture the opportunities in the Kingdom’s green energy sector in 2025 and beyond.
