Independent power projects and component manufacturers are to benefit from the expanded remit of Saudi Arabia’s Industrial Development Fund.
The $28billion financial pool has been revised in a bid to spur on the renewables movement through a variety of loan packages and collaboration with projects being spearheaded in other industries.
The incentives are part of Saudi Vision 2030, Crown Prince Mohammad bin Salman’s plan to diversify the economy of the world’s largest oil exporter.
In January, the government announced it would deploy 60GW of renewables by 2030, two-thirds of which would be solar.
Players in other industries deploying renewables can apply for loans with repayment periods of up to 12 years and grace periods of 36 months, and borrowing can be as much as $320m per application.
The government’s pivot to renewables comes after a drone strike on the kingdom’s Abqaiq processing facility in mid-September cut global oil output by 5% and sent prices skyrocketing.
Saudi Arabia’s solar industry is poised for rapid growth, according to an analysis by Wood Mackenzie.
In July, the firm placed the Gulf state within a 20-strong cohort of global “growth engines” expected to be installing between 1-5GW of the energy source per year over the next five years.