Chalhoub Group, a leading luxury retail group in the Middle East, has signed a solar lease agreement with Yellow Door Energy, a sustainable energy partner for businesses across the Middle East and Africa, to supply clean electricity to its fulfilment hub in Riyadh.
The project involves the installation of an 848 kWp rooftop solar power plant that will operate entirely off-grid, eliminating reliance on the local utility network. More than 1,380 solar panels will be installed, with the system expected to generate approximately 1.2 million kWh of clean electricity in its first year of operation, reducing carbon emissions by an estimated 460 metric tonnes annually.
Construction of the solar plant is already underway, with completion targeted for early 2026.
Under the terms of the solar lease agreement, Yellow Door Energy will be responsible for financing, designing, constructing, commissioning, operating, and maintaining the solar power plant. The leasing model enables Chalhoub Group to benefit from renewable energy without upfront capital investment or operational risk, while supporting the company’s sustainability and ESG objectives.
Mohammed Aldabbagh, KSA Managing Director at Chalhoub Group, said the project reflects the company’s commitment to embedding sustainability into its business model and contributes to Saudi Arabia’s broader sustainability ambitions.
Khaled Chebaro, Country Director for KSA at Yellow Door Energy, said the partnership demonstrates how solar leasing can deliver cost savings alongside emissions reductions, while supporting the Kingdom’s Net Zero by 2060 target.
The project underscores the growing adoption of corporate renewable energy solutions in Saudi Arabia as companies align their operations with national sustainability goals.
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