Given the incredible solar radiation levels in the Middle East, it always was a question of at what point countries there would be willing to take the plunge on solar power. One thing holding many of these countries back was the fact that some have abundant fossil fuel power at their disposal.

But the Middle East Solar Industry Association is estimating that the region will spend up to $50 billion on solar over the next seven years. The estimate includes 12-15 gigawatts of solar with another 22-25 gigawatts of wind and hydro.

The interesting issue here economically is that with rising global oil and natural gas prices, it’s just too expensive for Middle Eastern governments to divert oil to power generation when they can fetch a hundred bucks a barrel on the global market. Most Middle Eastern countries heavily subsidize fossil fuels for their citizens, who still pay gas prices reminiscent of the 1980s. It’s a massive subsidy that keeps these countries hooked on fossil fuels, a subsidy the World Bank has criticized.

But now the governments are considering whether it’s just better business for every last drop of fossil fuel to be exported, particularly if you can generate power from renewables at an increasingly reasonable price.

The Saudis will lead the charge with 41 gigawatts planned over the next couple decades and projects valued at around $162 billion. Now to beefing up that regional solar development operation.