Solar power in Saudi Arabia has become more important to the country as oil prices have risen. In 2011, over 50% of electricity was produced by burning oil. The Saudi agency in charge of developing the nations renewable energy sector, Ka-care, announced in May 2012 that the nation would install 41 gigawatts of solar capacity by 2032. It is projected to be composed of 25 gigawatts of solar thermal, and 16 gigawatts of photovoltaics. At the time of this announcement, Saudi Arabia had only 0.003 gigawatts of installed solar energy capacity. A total of 24 GW of renewable energy is expected by 2020, and 54 GW by 2032.
Saudi Arabia's first solar power plant was commissioned on October 2, 2011, on Farasan Island. It is a 500 kW fixed tilt photovoltaic plant.
A 200 kW rooftop installation is planned for Riyadh, and is expected to generate 330 MWh/year.
Due to rising oil prices and decreasing costs of utility-scale solar installations, solar power in Saudi Arabia has achieved grid parity and can produce electricity at costs comparable to conventional sources.