Behind-the-Meter Solar Saudi: Reduce Industrial Energy Costs & Achieve Grid Independence | Darkstone

The Problem: Grid Constraints and Rising Costs Are Squeezing Saudi Industry

Saudi Arabia’s industrial sector is facing a perfect storm. Grid connection delays of 12-24 months are stalling new facilities . Industrial electricity tariffs have risen to SAR 0.20/kWh (flat rate) , with commercial users paying SAR 0.22/kWh up to 6,000 kWh and SAR 0.32/kWh above that threshold . Meanwhile, the Saudi Electricity Company is facing legal action from industrialists over repeated power outages and grid disruptions .

The scale of the problem is clear: $260,000 is the average cost of a single hour of unplanned downtime across manufacturing sectors globally . In Saudi Arabia, the industrial sector faces both grid reliability issues and rising tariffs that erode competitiveness.

Industrial Energy Costs Are Only Going Up

With Saudi Arabia targeting 50% renewable energy by 2030 and the government gradually phasing out subsidies, industrial electricity tariffs are expected to continue rising. In 2025 alone, rates increased significantly . Industrial users now pay SAR 0.20/kWh—a 66% increase from pre-2020 levels—while the government continues to explore further tariff reforms.

The Grid Is Struggling to Keep Pace

Several Saudi cities and regions have faced unplanned power disruptions due to soaring temperatures and galloping peak summer power consumption . Industrialists have been particularly affected, with some planning legal action against SEC for “failure to fulfill its commitment to provide uninterrupted power supply” .

The problem is structural: SEC has contracted Aggreko to provide 100MW of temporary power to address seasonal shortages . This is not a permanent solution—it’s a Band-Aid on a grid that is struggling to keep pace with Vision 2030’s industrial growth.

The Solution: Behind-the-Meter Solar

Behind-the-meter (BTM) solar is the practical answer. Solar systems installed on the customer side of the utility meter generate power that is consumed directly by the facility, reducing grid electricity purchases, demand charges, and exposure to tariff increases.

The Economics Are Compelling

A 5 MWp industrial solar system can reduce electricity costs by 40-60% , with payback periods of 4-7 years and 25-year savings of SAR 40-50 million for a typical mid-sized facility.

Market Validation: Global Investors Are Betting Big

The market is so promising that global infrastructure investor I Squared Capital has launched Radiant Energy Solutions with a $150 million commitment to scale behind-the-meter renewables across the GCC . The platform was established through the acquisition of FAS Renewables and its Saudi subsidiary Zahra Energy, which already has a secured portfolio exceeding 100 MWp of distributed solar with long-term contracted PPAs .

This is a clear signal: major institutional capital is flowing into the Saudi BTM solar market. Radiant aims to deliver more than 1 GW of behind-the-meter renewable energy, storage, and energy transition solutions across the GCC .

The Saudi Regulatory Framework: Clear Rules for BTM Solar

Saudi Arabia has established a comprehensive regulatory framework for behind-the-meter solar:

Small-Scale Systems (1 kW – 2 MW)

These systems fall under the Small-Scale Solar PV Regulatory Framework . Key provisions include:

• Net Billing: Self-consumed solar offsets facility bills at the applicable tariff; surplus exported is credited at 5 halalas/kWh

• Capacity Limits: Single installation may not exceed 2 MW; up to 5 MW total across multiple premises

• Grid Constraints: Transformer-level cap of 15% of transformer rating; distribution area cap of 3% of peak demand

Self-Consumption Systems (up to 30 MW)

For larger industrial installations, the Self-Consumption Regulatory Framework applies to renewable energy generation systems for self-consumption :

• Maximum Capacity: Not exceeding 30 MW per premises

• Self-Consumption Billing: Similar to net billing for energy exchange and financial arrangements

• Study Authorization: Required from SERA in accordance with the Electricity Law 

The regulatory environment is stable and clear, making industrial BTM solar a low-risk investment.

The Darkstone Advantage: Turnkey BTM Solar Solutions

With over 5.7 million LTI-free man-hours, 150+ projects completed, and a 330 MW solar project nearing commissioning, Darkstone Arabia has the proven capability to deliver large-scale BTM solar for industrial facilities.

Our Complete BTM Solar Services

Our Credentials: Delivering at Scale

Darkstone is preparing for commissioning of the 330 MW Sa’ad solar power station near Riyadh . This utility-scale project demonstrates our capability to deliver complex solar infrastructure at scale—expertise directly applicable to large industrial behind-the-meter installations.

We have already delivered 150+ projects across Saudi Arabia with 5.7+ million LTI-free man-hours, and have been recognized by Monsha’at as one of the Kingdom’s fastest-growing companies.

Implementation Roadmap

Phase 1: Feasibility Assessment (Weeks 1-4)

• Energy audit and load profile analysis

• Solar resource assessment (on-site measurement and satellite data)

• Site evaluation (space, structural assessment, shading analysis)

• Financial modeling and ROI calculation

• Incentive identification (Saudi Green Initiative support)

Phase 2: Engineering & Procurement (Weeks 5-12)

• System design for industrial load profile

• Technology selection (modules, inverters, trackers, batteries)

• SEC/SERA application for grid interconnection

• Equipment procurement with quality verification

Phase 3: Construction (Weeks 13-28)

• Civil works and foundation installation

• Electrical infrastructure (cabling, switchgear, inverters)

• Tracker and module installation

• Battery integration and control system deployment

Phase 4: Commissioning & Handover (Weeks 29-32)

• System testing and performance verification

• Final inspection and grid connection approval

• Operator training and documentation

• Performance guarantee activation

Frequently Asked Questions

What is behind-the-meter solar?

Behind-the-meter solar refers to photovoltaic systems installed on the customer side of the utility meter. Power generated is consumed directly by the facility, reducing grid electricity purchases, demand charges, and exposure to tariff increases.

How much can I reduce my industrial energy costs?

Typical industrial BTM solar systems reduce electricity costs by 40-60%. For a facility spending SAR 4 million annually on electricity, this represents SAR 1.6-2.4 million in yearly savings.

What are the regulatory requirements?

Systems up to 2 MW fall under the Small-Scale Solar PV Regulatory Framework (net billing). Systems up to 30 MW fall under the Self-Consumption Regulatory Framework. Both require approval from SERA/SEC.

How long does installation take?

Typical installation takes 4-8 months from contract signing to commissioning.

What if my facility operates 24/7?

Darkstone includes battery energy storage that stores excess solar generation for evening and night shifts. We design hybrid solar-battery-grid configurations achieving 70-90% renewable penetration.

Ready to Reduce Your Industrial Energy Costs?

Contact Darkstone Arabia’s Solar Division to discuss how our behind-the-meter solar solutions can deliver energy security, cost savings, and competitive advantage for your operations.

Head Office: 13223 King Abdullah Rd., Riyadh, Kingdom of Saudi Arabia

Phone: 11 430 0307

Email: info@darkstone-ltd.com