Array Technologies, the Albuquerque-based solar tracker manufacturer, delivered a solid first quarter in 2024, reaffirming their full-year guidance despite recent turmoil in the industry due to AD/CVD petitions. While the numbers are impressive, a closer look at the transcript reveals a potentially groundbreaking development that seems to have slipped under the radar of most analysts: Array's quiet, yet aggressive, foray into the burgeoning Middle Eastern solar market.

This wasn't a flashy announcement or a headline-grabbing press release. Instead, the clues were scattered throughout CEO Kevin Hostetler's commentary, like whispers carried on the desert wind. He spoke of a recent trip to Dubai and Abu Dhabi, a newly bolstered government affairs team, and, most tellingly, the overwhelming welcome received from EPCs and developers in the region. "Not only 'what took you so long,' but 'thank God you're here, how do we get going together'," Hostetler recounted, highlighting the eager anticipation for Array's entry into the market.

This enthusiasm is understandable. The Middle East, with its abundant sunshine and ambitious renewable energy goals, represents a gold mine for solar developers. Saudi Arabia alone aims for 50% of its electricity to be sourced from renewables by 2030, a target that translates to massive solar installations. Array, with its reputation for robust, high-performance trackers, is perfectly positioned to capitalize on this opportunity.

Their strategic approach is two-pronged. First, they are leveraging the power of local partnerships. The recently announced collaboration with a Saudi Arabian steel fabrication subsidiary ensures access to local materials, a crucial factor in securing projects in the region. This localized sourcing not only offers cost advantages but also aligns perfectly with the region's focus on domestic content and economic diversification.

Second, Array is actively deploying its "results are rhetoric" strategy, letting their track record speak for itself. The fact that Array trackers powered seven of the top 10 most efficient solar plants in Brazil in 2023, as per independent data, resonates powerfully with developers seeking guaranteed performance in the unforgiving Middle Eastern climate.

This data-driven approach, combined with a history of innovation – exemplified by the 120 patents granted in the past two years – paints a compelling picture for potential partners in the region. While Array is remaining tight-lipped on specific orders and revenue projections, the CEO's comments suggest that the company is actively bidding on significant projects in the Middle East.

This begs the question: how substantial could Array's Middle Eastern venture become? It's too early for precise figures, but we can look at some potential numbers. Saudi Arabia's renewable energy target could necessitate the installation of upwards of 50 gigawatts of solar capacity by 2030. If Array were to capture even a modest 10% share of the Saudi market, that would translate to 5 gigawatts of tracker sales, potentially worth hundreds of millions, if not billions, of dollars in revenue over the next few years.

Potential Revenue from Saudi Arabia (Hypothetical)

Add to this the broader potential of the Middle East and North Africa region, and the upside for Array could be staggering. While the company's current $2.1 billion order book provides a healthy runway, a significant breakthrough in the Middle East could propel them to a whole new level of growth.

The whispers from the desert are growing louder. It seems Array Technologies, with its quiet confidence and strategic approach, may be on the verge of becoming a major player in the Middle East solar market. The next few quarters will reveal just how loud those whispers become.

"Fun Fact: The Middle East and North Africa region (MENA) boasts some of the highest solar irradiance levels in the world, meaning it receives an exceptionally high amount of sunlight. This makes it an ideal location for large-scale solar installations."