The Saudi Solar Supply Chain: How Local Manufacturing Can Power the Energy Transition

The Solar Revolution: From Importer to Industrial Powerhouse

Saudi Arabia is undergoing a remarkable transformation. In 2025, the Kingdom entered the ranks of the world’s top 10 investors in renewable energy for the first time, investing nearly $34 billion in the sector—a leap of nearly 70% year-on-year . With targets to achieve 50% renewable energy by 2030 and 130 GW of total renewable capacity, the scale of Saudi Arabia’s solar ambition is matched only by its commitment to localizing the value chain .

This is not merely about installing solar panels—it is about building a complete domestic solar supply chain KSA that captures economic value within the Kingdom. The government’s local content threshold for PV systems is set at 33-35% for 2024-25, increasing to 40-45% for 2028 and beyond . This requirement is driving massive investment in local manufacturing, from solar cells and modules to tracking systems, inverters, and balance-of-system components.

At Darkstone Group, our Solar Division is at the forefront of this transformation. We are not just installing solar projects—we are helping build the infrastructure that enables local solar manufacturing Saudi to flourish. From constructing manufacturing facilities to integrating locally sourced components into our turnkey solar solutions, we are driving in-kingdom solar value creation across the entire value chain.

The National Imperative: Why Local Content Matters

Beyond Energy: Economic Diversification and Job Creation

Saudi Arabia’s push for local solar manufacturing serves multiple strategic objectives:

Economic Diversification:

• Retaining value within the Kingdom rather than importing finished components

• Creating high-value manufacturing jobs for Saudi nationals

• Building export capacity for regional and global markets

• Reducing dependence on oil revenues through industrial development

Supply Chain Resilience:

• Insulating the renewable energy sector from global supply disruptions

• Reducing logistics costs and carbon footprint of imported components

• Ensuring quality control through local oversight

• Developing technical expertise within the Kingdom

Technology Leadership:

• Positioning Saudi Arabia as a regional hub for solar technology

• Attracting international manufacturers to establish local production

• Building indigenous R&D and innovation capacity

• Creating intellectual property within the Kingdom

The Local Content Challenge

Despite these ambitions, significant gaps remain. A comprehensive academic assessment of Saudi Arabia’s in-country capacity to deliver on its solar ambitions found that while financing achieves 75% local content, all other aspects of PV farms in Saudi Arabia achieve only 22-50% local content .

The research notes that importing PV cells rather than modules (to increase local content by undertaking module lamination in the country) would require 58% of Saudi Arabia’s float glass production from now until 2030. The researchers estimate that 85% of modules will need to be manufactured in their entirety in country if the local content of all other aspects does not change .

The conclusion is clear: increasing local content across all aspects of PV systems is needed, with a focus on the local skills base and capacity .

Major Local Manufacturing Announcements

Desert Technologies & Modon: 5 GW Solar Cell and Panel Factory

A landmark partnership between Desert Technologies, a pioneer Saudi solar manufacturer, and the Saudi Authority for Industrial Cities and Technology Zones (Modon) is establishing one of the largest solar panel and cell factories in the Kingdom .

Project Specifications:

• Location: Jeddah’s third industrial city

• Area: 170,000 square meters

• Annual Capacity: 5 GW total (2 GW solar panels, 3 GW solar cells)

• Status: One of the largest PV production centers in the Kingdom

Khaled Sharbatly, CEO of Desert Technologies, stated: “This project represents a significant milestone in the company’s journey toward advancing the sustainable energy sector. The facility will rely on advanced manufacturing technologies that meet global quality standards to support local market needs and increase the volume of Saudi exports. This project embodies the strategic partnership between the public and private sectors to achieve the goals of Saudi Vision 2030 by strengthening the local value chain in the renewable energy sector and localizing advanced industries” .

Arctech: 15 GW Tracking System Factory in Jeddah

Chinese solar tracking specialist Arctech has completed Phase II of its Jeddah manufacturing facility, representing a $60 million investment across 100,000 square meters .

Key Capabilities:

• Annual Production Capacity: 15 GW

• Products: Posts, transmission shafts, and AI-powered control boxes

• Technology: AI control boxes using cloud and back-tracking algorithms to boost energy yield by up to 8%

• Future Plans: Phase III focusing on energy storage systems, cleaning robots, and AI-powered solutions

Cai Hao, Chairman of Arctech, hailed the launch as “a strategic milestone” in the company’s global localization strategy. Wang Pei, Head of International Operations HQ, noted that the expansion aligns with Saudi Vision 2030’s local-content program, enhancing the Kingdom’s manufacturing and technological self-reliance .

JinkoSolar & PIF: 10 GW Solar Cell and Module Plant

In a landmark joint venture, JinkoSolar announced a partnership with Saudi Arabia’s Public Investment Fund (PIF) subsidiaries Renewable Energy Localization Company (RELC) and Vision Industries to build a 10 GW solar cell and module plant .

Project Details:

• Equity Structure: JinkoSolar 40%, RELC 40%, Vision Industries 20%

• Expected Production: 2026

• Strategic Significance: Adds a key piece to Jinko’s global network while enabling Saudi technology transfer

Zhuhai Hongjun: 6 GW HJT Module Factory

Zhuhai Hongjun SoleFiori (a subsidiary of China’s Hongjun New Energy) announced a partnership with local Saudi counterparts to build a 6 GW HJT (Heterojunction) PV module factory .

Technology Advantages:

• Bifacial Efficiency: Over 95%, generating power from both sides

• Low Temperature Coefficient: Stable performance in high-temperature, high-irradiation desert environments

• Strategic Rationale: Localization reduces logistics and tariff risks while embedding into the local industrial system

This move is not isolated. As SMM analysis notes, Chinese PV producers are transitioning from an “export” model to “localized production” in the Middle East/Gulf region. Against the backdrop of European and American tariff barriers and geopolitical risks, establishing production capacity overseas serves as a strategic hedge. At the same time, Saudi Arabia leverages such joint ventures to facilitate technology transfer, job creation, and industrial upgrading .

The Balance of System Opportunity: Components Beyond Modules

Local Manufacturing for Tracking Systems

Arctech’s Jeddah facility demonstrates that solar tracking systems—which significantly boost energy yield—can be manufactured locally. The company’s AI-powered control boxes use advanced algorithms to optimize panel angles throughout the day, increasing energy production by up to 8% .

Localization Progress:

• Current: Local manufacturing of posts, transmission shafts, and control boxes

• Future: Full localization of slew drives and control boxes by next year

Inverters and Electrical Components

The 2.7 GW ACWA Power portfolio that entered commercial operation in August 2025 demonstrated the potential for inverter localization. While a Chinese inverter company supplied 1 GW for the Al Kahfah project, the project also featured locally manufactured tracking components from PV Hardware’s Saudi factory, which produced 957 MW of trackers .

Mounting Structures and Civil Works

Local manufacturing of steel structures, mounting systems, and civil components represents a significant opportunity. The academic assessment notes that domestic manufacturing capacities for float glass, aluminum framing, steel, and concrete are evident but capacity constraints remain .

The Role of International Partnerships

Chinese Investment Driving Localization

Chinese manufacturers are at the forefront of Saudi solar localization:

As SMM analysis notes, from a macro perspective, Chinese PV producers are transitioning from an “export” model to “localized production” in the Middle East/Gulf region .

The Technology Transfer Opportunity

Each international partnership brings not just manufacturing capacity but technology transfer, workforce training, and management expertise. Saudi Arabia leverages these joint ventures to facilitate:

• Technology transfer and absorption

• Job creation for Saudi nationals

• Industrial upgrading and diversification

• Local supply chain development

However, as the analysis cautions, even with local production sites, if key upstream materials—such as wafers, films, and glass—remain import-dependent, the degree of localization will remain limited .

The Darkstone Advantage: Building the Infrastructure for Local Solar

Solar Division Capabilities

Darkstone Arabia’s Solar Division delivers turnkey solar solutions that integrate locally sourced components wherever possible. Our services include :

• Civil Works: Site preparation, excavation, landscaping after solar array construction

• Internal Roads: Access infrastructure for solar facilities

• Substation Buildings: Construction of electrical infrastructure

• MEP: Mechanical, electrical, and plumbing works for solar plants

• Turnkey Solar Power Solutions: Complete EPC services

Major Project Experience

Darkstone is currently preparing for the commissioning of the Sa’ad solar power station, a 330 MW solar PV project near Riyadh . This project demonstrates our capability to deliver utility-scale solar infrastructure that can incorporate locally manufactured components as the domestic supply chain matures.

Supporting Local Manufacturing Infrastructure

Beyond solar installation, Darkstone’s Industrial Construction division is positioned to build the facilities that enable local solar manufacturing:

• Solar Panel Factories: Construction of manufacturing plants for cells, modules, and trackers

• Warehousing and Logistics: Distribution centers for solar components

• Testing and Certification Labs: Quality assurance infrastructure

• Training Facilities: Workforce development centers for solar manufacturing

Integration with Mining Division

Darkstone’s Mining division explores for critical minerals essential to solar technology—including copper, silver, and silica. This creates the potential for an integrated mine-to-module supply chain where Saudi-mined minerals feed Saudi solar manufacturing, which in turn powers Saudi mines.

Economic Impact: Quantifying the Local Content Opportunity

Current Investment Landscape

Saudi Arabia invested nearly $34 billion in renewable energy in 2025, leaping by nearly 70% year-on-year . The Kingdom tendered a total of 64 GW of renewable energy capacity by the end of 2025, including 20.6 GW tendered during 2025 alone, with 12.3 GW connected to the grid by the end of last year .

The 2.7 GW ACWA Power portfolio that entered commercial operation in August 2025 represented a total investment of 122 billion Saudi Riyals (approximately $33 billion) .

Local Content Requirements

The local content threshold for PV systems is set at 33-35% for 2024-25, increasing to 40-45% for 2028 and beyond . Achieving these targets requires coordinated development across the supply chain:

Current Local Content Levels :

• Financing: 75%

• Other aspects (modules, inverters, trackers, civil works): 22-50%

Target Local Content Levels:

• 2024-25: 33-35%

• 2028+: 40-45%

The Economic Multiplier Effect

Every percentage point increase in local content represents:

• Millions in retained economic value within the Kingdom

• Thousands of manufacturing and technical jobs for Saudi nationals

• Reduced logistics costs and carbon footprint

• Enhanced supply chain resilience and security

Challenges and Solutions

Challenge 1: Upstream Material Dependence

The Issue: Even with local module assembly, key upstream materials—wafers, films, and glass—remain import-dependent, limiting true localization .

The Solution: Phased development starting with module assembly and tracking systems, progressively integrating upstream components as local capacity develops. The academic assessment notes that increasing local content across all aspects of PV systems is needed, with a focus on the local skills base and capacity .

Challenge 2: Skills and Workforce Development

The Issue: Local manufacturing requires technical expertise that is currently limited.

The Solution: International partnerships like JinkoSolar’s joint venture include technology transfer and workforce training components. Arctech currently employs 120 professionals from 11 nationalities across the MENA region, building local capability through hands-on experience .

Challenge 3: Cost Competitiveness

The Issue: Local manufacturing may initially be more expensive than imports.

The Solution: Local content requirements create guaranteed demand, enabling manufacturers to achieve economies of scale. Government support through Modon and other agencies provides infrastructure and incentives.

Challenge 4: Grid Integration

The Issue: Nearly 30 GWh of battery energy storage system (BESS) projects have been tendered to date, with 8 GWh connected to the grid by the end of 2025, but integration challenges remain .

The Solution: Darkstone’s expertise in industrial construction and electrical systems enables us to support grid integration infrastructure, including substations and control systems.

The Future: A Fully Localized Solar Supply Chain

Projected Manufacturing Capacity

Based on announced projects, Saudi Arabia is on track to achieve significant local manufacturing capacity by 2030:

The Export Opportunity

Beyond meeting domestic demand, Saudi Arabia is positioning itself as a manufacturing hub for regional and global markets. Desert Technologies already exports solar panels, and the company’s new 5 GW facility aims to increase the volume of Saudi exports .

As SMM analysis notes, in the long run, if more producers localize, Saudi Arabia and neighboring markets could not only absorb module capacity but also cultivate mature local supply chains, potentially forming a new regional PV manufacturing hub .

Integration with Vision 2030

Local solar manufacturing directly supports multiple Vision 2030 objectives:

Economic Diversification:

• Creating high-value manufacturing jobs

• Building export capacity for renewable energy products

• Developing indigenous technology and intellectual property

Energy Security:

• Reducing dependence on imported solar components

• Ensuring reliable supply for domestic solar deployment

• Building strategic reserves of critical components

Sustainability Leadership:

• Reducing carbon footprint of solar deployment

• Building circular economy for end-of-life panels

• Demonstrating Saudi commitment to clean energy

The Darkstone Commitment: Powering the Local Solar Ecosystem

Our Role in the Supply Chain

Darkstone Arabia is committed to supporting local solar manufacturing through:

1. Construction of Manufacturing Facilities:
Building the factories where solar components are produced, leveraging our Industrial Construction division’s expertise.

2. Integration of Local Components:
Incorporating locally manufactured modules, trackers, and mounting structures into our turnkey solar solutions wherever they meet quality and cost requirements.

3. Infrastructure Development:
Building the roads, substations, and grid connections that enable solar projects to utilize local components efficiently.

4. Workforce Development:
Training Saudi engineers and technicians in solar installation and maintenance, creating the skilled workforce that local manufacturing requires.

A Call to Action

The transformation of Saudi Arabia’s solar supply chain is underway. Major investments from JinkoSolar, Arctech, Desert Technologies, and others are establishing local manufacturing capacity at unprecedented scale. The local content requirements create guaranteed demand. The government provides infrastructure and incentives.

The missing piece is integration—connecting local manufacturing to project deployment through EPC partners who prioritize local content. At Darkstone, we are that partner. Our Solar Division delivers turnkey solutions that can incorporate locally sourced components. Our Construction Division builds the facilities that enable local manufacturing. Our commitment to Vision 2030 drives our focus on in-kingdom solar value.

The Saudi renewable energy industry is being built today. Darkstone is building it.

Ready to Power Your Solar Project with Local Content?

Contact Darkstone Group’s Solar Division to discuss how our turnkey solar solutions can integrate locally manufactured components and maximize your project’s in-kingdom value.