Solar PV installation feasibility study
Latest regulatory change: 2023 · reviewed 2026-11-05
Design, installation and maintenance of small photovoltaic systems on the roofs of homes and businesses.
- 106Companies qualified for small systems[3]
- 2 MWMaximum capacity of a small system[4]
- 2021Launch of the Shamsi portal and system readiness[2]
Latest regulatory and market changes
- 2017The Electricity Regulatory Authority announced that small PV systems could be connected from July 2018, under net metering and with a limit of 2 MW per facility.[1]
- 2021The Ministry of Energy announced that small systems for homes and businesses were ready, the regulator launched the Shamsi portal, and the Saudi Standards, Metrology and Quality Organization (SASO) began applying technical regulations for PV systems.[2]
- 2023The authority announced more than 106 companies qualified to design, install and maintain small systems.[3]
Why now
- Net billing allows surplus power to be exported to the distribution grid, which improves the system's economics for the consumer.[1]
- The Shamsi portal calculates the cost and monthly and annual savings before connection, which makes the purchase decision easier.[4]
106contracting and consulting companies qualified to deliver small PV systems for homes and businesses.[3]
The idea and business model
A qualified contracting business that designs and installs small solar photovoltaic (PV) systems and connects them to the distribution grid or runs them off-grid. Income comes from supply and installation contracts and from follow-on maintenance contracts.
Model: Contracting and projects
Project economics
Revenue formula
Sales channels
- Homes and villas
- Commercial and industrial premises
- Maintenance and cleaning contracts
Largest cost items
- Panels, inverters and mounting structures
- Engineer and technician salaries
- Transport and installation
- Qualification and warranties
Decisive indicators we measure
- Projects completed per month
- Project margin
- Time to install and connect
- Share of maintenance contracts
Relevant authorities
- Saudi Electricity Regulatory Authority: regulatory framework for small systems and contractor qualification
- Ministry of Energy: programme oversight and lists of qualified contractors
- Saudi Standards, Metrology and Quality Organization (SASO): technical regulations for PV systems
- Distribution service provider: connection agreement and net billing
- Ministry of Commerce: Commercial Registration (CR)
What needs your attention
- Work on grid-connected systems requires qualification on the qualified contractor lists held by the relevant authorities.
- The customer's return depends on the electricity tariff and the net billing mechanism; any change to either alters demand.
- We found no documented regulatory update after 2023, so the framework in force must be checked at the time of the work.
What a Solar PV installation study calculates for you
- Cost per installed kilowatt
- Customer payback period under the tariff and net billing
- Qualification requirements and their cost
- Working capital to fund equipment before collection
- Annual projects needed to break even
Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.
Sources
Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.
- «الكهرباء»: بدء العمل بالطاقة «الشمسية الكهروضوئية» يوليو القادمعكاظ · 2017-08
- Saudi Arabia Begins Using Small-Scale Solar PV Systems to Generate ElectricityAsharq Al-Awsat · 2021-02
- الطاقة الشمسية في السعودية.. القطاع الخاص مؤهل لتنفيذ إستراتيجية الدولةالطاقة · 2023-05
- بوابة شمسيالموسوعة السعودية · 2023-06
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.