By:Zawya

Saudi Arabia’s largest companies are increasingly investing in solar energy, driven by the government’s elimination of electricity subsidies and its ambitious clean energy targets. The shift reflects both environmental goals and a practical response to rising power costs, with firms in logistics, retail, and healthcare now installing rooftop photovoltaic systems, the Financial Times reported.

Fakeeh Care Group, a private healthcare network in Jeddah, reported saving over SR170,000 ($45,000) on its 2024 electricity bill after deploying solar panels. “We have managed to reduce our carbon footprint and cost, albeit marginally,” said Mazen Fakeeh, the group’s president. “But we’re encouraged by the initial results.”

Although the Saudi government aims to source half of its energy from renewables by 2030, experts say the most immediate driver of commercial solar investment is the 2018 decision to phase out power subsidies. The move, part of broader economic reforms, has increased electricity tariffs for businesses—prompting a reconsideration of rooftop solar viability.