Saving money and the planet with solar leasing

In recent years, Saudi Arabia has stepped up its pursuit of a cleaner, greener tomorrow, positioning itself as a global energy leader championing climate action.

Under the Saudi and Middle East Green Initiatives, the Kingdom is implementing more than 80 projects in the public and private sectors with investments worth more than SR705 billion ($188 billion) to build a more sustainable future for all.

Furthermore, COP16 of the UN Convention to Combat Desertification will be held in the Saudi capital Riyadh in December.

Another important step is Saudi Arabia’s intention to reach net-zero by 2060, which requires an annual emission reduction of 278 million tonnes of CO2 equivalent by 2030.

To achieve this goal, the Kingdom is targeting 130 GW of renewable energy production capacity by 2030, increasing its share in the energy mix to 50 percent.

Tapping into its immense solar power potential, the country more than doubled its renewable energy capacity last year from 700 MW in 2022 to more than 2.2 GW.

With the growing importance of solar, companies are looking for innovative ways to switch to clean energy while reducing their electricity costs.

Solar leasing, also known as a solar power purchase agreement, or PPA, is the preferred option among multinational companies and large family-owned businesses. This solution is now widely available through leading sustainable energy developers in Saudi Arabia.

With a solar lease, companies can enjoy immediate savings with no upfront investment, while focusing on their core business and transferring the entire construction and operational risk to developers such as Yellow Door Energy.

The savings can be substantial, significantly reducing operating costs.

Solar leasing offers a cost-effective way to adopt renewable energy, lowering operational costs and enhancing an organization’s green credentials without the burden of initial capital investment.

Khaled Chebaro

With diesel pricing going up, businesses are looking to solar leasing to reduce diesel consumption and reliance on diesel generators.

Additionally, the widespread adoption of solar leasing can enhance energy grid stability and resilience by diversifying the energy supply and reducing peak demand pressures.

Solar leasing offers a cost-effective way to adopt renewable energy, lowering operational costs and enhancing an organization’s green credentials without the burden of initial capital investment.

In addition to the cost savings, this approach is hassle-free, as the operations and maintenance are entrusted to an expert with a proven track record.

Yellow Door Energy has more than 90 customers and 240 MW of awarded solar projects in Saudi Arabia, Bahrain, UAE, Oman, Jordan and South Africa.

The company implements strict health and safety standards on all its 100-plus project sites and has a robust sustainable energy asset management system to live-monitor all its operating projects and maximize clean energy production.

With its desert climate, characterized by high temperatures and water scarcity, Saudi Arabia faces several environmental challenges, including desertification and land degradation. The country is also highly susceptible to the impacts of climate change.

Innovative technologies, such as solar PV, combined with the solar lease financing solution, along with traditional efforts such as land restoration, are an integral part of a holistic approach to environmental protection, climate action and achieving the Kingdom’s net zero 2060 target.

Additionally, the expansion of solar leasing can drive job creation and economic growth in the renewable energy sector, supporting overall national development.

In summary, with the Saudi government drafting regulations to advance a just energy transition, the Kingdom’s companies have a prime opportunity to amplify their contributions to a more sustainable future through the adoption of renewable energy solutions.

• Khaled Chebaro is the Saudi Arabia country director at Yellow Door Energy