In Iran, installed capacity of PV is approximately 539 MW at the end of 2022.⁵

Iran’s government has set an ambitious goal to add 10 gigawatts (GW) of solar capacity by 2030, as part of its broader plan to increase its renewable energy capacity.⁶

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According to 2018 data, the average costs of electricity generation in Iran varied across different sources.

• Nuclear energy had an average cost of 5.28 cents per kilowatt-hour (¢/kWh), while natural gas was significantly lower at 2.83 ¢/kWh.
• Hydropower was the most expensive option at $0.39/kWh.
• In contrast, renewable energy sources like solar PV and onshore wind were much cheaper, with average costs of $0.048/kWh and $0.045/kWh, respectively.

Please note that more recent data may be available, but these figures provide a general idea of the relative costs of different energy sources in Iran as of 2018.

Iran’s electricity generation is predominantly fueled by fossil fuels, with natural gas being the primary source, accounting for 86% of the country’s power production. Oil also plays a significant role, contributing around 7% to the energy mix. Low-carbon energy sources, including hydropower and nuclear power, make up a mere 6% of the total electricity generation.⁸

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Specific data on the number of hours of average daily electricity availability is not available.

• Iran’s energy sector faces significant challenges, particularly during peak seasons. In the summer, the country experiences a substantial electricity shortage of 14,000 megawatts (MW), while in the winter, there is a daily gas deficit of 250 million cubic meters (Mcm/d).
• These shortages have a profound impact on the country’s industries, resulting in an estimated annual cost of at least $8 billion.

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Current Installations

Iran has made significant strides in promoting solar energy adoption in the residential sector, with a notable milestone achieved as of 2023. The country has successfully provided approximately 30,000 solar panel systems to households, marking a substantial step towards harnessing renewable energy sources.

Projected Installations

In a bid to further expand its solar energy initiatives, Iran has announced plans to distribute 110,000 solar panels to underprivileged individuals over the next five years. This commendable effort, undertaken in collaboration with the Relief Foundation and the Welfare Organization, aims to provide clean and sustainable energy access to vulnerable populations.

Installed Solar Farms ¹¹

There are more than 63 solar power plants are working in different provinces of Iran having different capacities.

Projected Solar Farms ¹²

As of January 2024, Iran’s Small Industries and Industrial Parks Organization (ISIPO) announced plans to build 17 solar parks across six provinces, with five already under construction. The country aims to:

• Increase solar panel production capacity: to 2.3 gigawatts per year
• Allocate land for solar farms: 23,000 hectares set aside for solar farm development

The off-grid solar panels market in Iran is driven by the desire for cost-effective, sustainable living solutions.

Current Demand ¹³

• Iran’s remote and rural areas face significant challenges in accessing electricity, but off-grid solar panels offer a viable solution.
• By harnessing solar energy, communities not connected to the national grid can enjoy reliable electricity through solar panels, lanterns, home systems, and mini-grids. This, in turn, improves residents‘ quality of life, enhances educational opportunities through better lighting, and enables small businesses to operate more efficiently.
• As a result, the demand for off-grid solar panels is increasing, driven by the need to address energy access challenges and bridge the gap in these underserved areas.
• By adopting off-grid solar solutions, Iran can promote energy inclusivity and sustainable development in its most remote regions.

Future Demand ¹⁴

Exact capacity is not given but;

• Iran is poised to significantly boost its solar panel production capacity with the launch of new production lines, aiming to reach an annual capacity of 2,300 megawatts.
• This expansion is designed to meet both domestic and export demands, with a focus on off-grid applications that cater to remote or underserved areas.

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Current On-Grid Solar Panel Demand

• Iran’s on-grid solar energy sector holds great promise due to the country’s high solar irradiance, making it an ideal location for solar power projects. The government has implemented supportive policies and feed-in tariffs to encourage investment in solar energy.
• Notable projects like the 10 MW Kerman Solar Park and the 5 MW Mobarakeh Solar Power Plant demonstrate the potential for growth.
• However, the sector faces significant obstacles, including economic sanctions that hinder access to advanced technology and financial resources, outdated grid infrastructure in need of upgrades, and bureaucratic challenges that complicate the investment process.
• Despite these hurdles, recent developments indicate progress through international partnerships with countries like China and Germany, as well as efforts to boost local solar panel manufacturing.

Projected On-Grid Solar Panel Demand

Exact demand is not given but;

• Iran is actively pursuing a transition towards a more sustainable energy mix, with a focus on reducing its dependence on fossil fuels and increasing the share of renewable energy sources.
• The government has set an ambitious target of achieving 10% renewable energy by 2025, with solar power playing a vital role in this endeavor.
• To support this goal, Iran is expanding its solar panel production capabilities with the addition of two new lines, each with a capacity of 900 megawatts, bringing the total production capacity to 2,300 megawatts per year.
• This significant expansion is expected to meet growing on-grid demand and pave the way for the country’s long-term objective of establishing a 10,000-megawatt production capacity.

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• Typical Annual Salary: $8,352.00
• Lowest Average Salary: $4,262.39
• Highest Average Salary: $12,844.81

As of July 31, 2024, the current population of the Islamic Republic of Iran is 89,864,912.¹⁶

Estimate for Factory Rent ¹⁷¹⁸

Average Warehouse Rental Cost

• Iran’s logistics real estate sector is facing significant challenges, particularly in Tehran, where there is a substantial shortage of modern warehouse space. The city requires an additional 2-3 million square meters of Grade A warehouse space, but current capacity only meets a mere 10% of this need.
• This shortage has resulted in high costs due to the fragmentation and inefficiency of existing facilities, leading to logistics costs that are approximately 60% higher compared to well-managed warehouses.
• An estimate of current costs of available costs is as follow:
• Small: $2,000 to $5,000/Month
• Medium: $5,000 to $10,000/Month
• Large: $10,000 to $20,000/Month

Business Electricity Price ¹⁹

As of October 2023, electricity prices for industry in Iran were $3.9 cents per kilowatt-hour (kWh)

Key Components of Administrative Costs

Salaries and Wages: ¹⁵

• Typical Annual Salary: $8,352.00
• Lowest Average Salary: $4,262.39
• Highest Average Salary: $12,844.81

Rent for Office Space ¹⁸

• Minimum: $670/Month
• Maximum: $25,000/Month
• Average: ~$11,228/Month

Electricity Generation ²⁰

• Iran’s electricity generation is predominantly fueled by fossil fuels, with natural gas being the primary source (86%) and oil contributing around 7% as of 2023.
• In contrast, clean energy sources play a relatively minor role, with hydropower being the largest contributor at 4%, followed by wind and solar power at a mere 0.6%.
• However, Iran’s power sector emissions have nearly tripled over the last two decades, prompting the government to recognize the need for a transition towards renewable energy.
• To address this, the government plans to increase its renewable energy capacity, aiming to reduce its dependence on fossil fuels and mitigate the environmental impact of its power sector.

Transmission & Distribution ²¹

Iran’s electricity transmission network is a complex system managed by the Generation and Transmission Company of Iran (TAVANIR), established in 1970. The network comprises:

• 230-kV transmission lines, spanning approximately 24,000 km
• 400-kV transmission lines, spanning approximately 15,000 km

TAVANIR is responsible for overseeing the transmission and generation plans, substations, and high-voltage transmission network across the country. This infrastructure is crucial for ensuring a reliable and efficient supply of electricity to meet Iran’s growing energy demands. The company plays a vital role in maintaining and upgrading the network to support the integration of renewable energy sources and reduce reliance on fossil fuels.

Energy Access ²²

• According to Enerdata, Iran has achieved a remarkable level of electrification, with 99.5% of its population having access to electricity. The country’s electricity consumption has been steadily increasing, with an annual growth rate of 4% since 2010.
• In 2022, Iran consumed 292 TWh of electricity, with 33% going to the residential sector, 33% to industry, 18% to services, and 16% to the oil and gas sector.

Energy Exports ²³

• Iran’s energy exports are primarily composed of petroleum products, natural gas, and electricity. In 2021, the country exported approximately 840,000 barrels per day of petroleum products, with liquefied petroleum gas, fuel oil, and gasoline representing around 74% of these exports.
• Despite sanctions reducing oil exports since 2012, recent increases have been observed due to less stringent enforcement and higher demand from China.
• Additionally, Iran exported about 635 billion cubic feet of natural gas in 2021, predominantly to Iraq and Turkey under long-term agreements.

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Legal Framework

The main laws governing renewable energy include the Law on Modification of Energy Consumption Pattern (LMECP) and the Sixth Five-Year Development Plan Law (6th FYDPL). These laws provide the foundation for developing, operating, and selling renewable energy, including solar power.

Licensing and Permits:

• Construction License: To start a solar PV project, developers must obtain a construction license from the Renewable Energy and Energy Efficiency Organization (SATBA).
• Grid Connection Permit: A permit from the state-owned utility company Tavanir is required to connect the solar plant to the national grid.
• Environmental License: The project must also secure an environmental license from the Environmental Protection Organization.

Power Purchase Agreements (PPAs)

Once the necessary licenses and permits are in place, developers can sign a PPA with SATBA. The standard PPA guarantees the purchase of electricity generated by the solar plant, typically for a period of 20 years. Under normal conditions, solar PV projects must be completed within 15 months of signing the PPA.

Market Framework

• Iran’s renewable energy market is regulated by SATBA, which oversees the implementation of policies and internal regulations.
• Renewable projects also participate in emission trading under the Kyoto Protocol and benefit from Energy Saving Certificates (ESCs) under the Law Creating the Environment and Energy Optimization Market 2018.

Dispute Resolution

Disputes under PPAs are first addressed through negotiation or a panel of experts. Unresolved disputes are adjudicated by Iranian courts.

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Framework of energy policies aim to promote renewable energy investments by providing clear regulatory guidelines and financial incentives while addressing potential challenges through structured dispute resolution mechanisms.

Incentives and Support

• Feed-in Tariffs (FITs): The government offers FITs with annual adjustments to account for inflation and exchange rate fluctuations, ensuring stable returns for investors.
• Tax Breaks and Duty Exemptions: Renewable energy projects benefit from significant tax breaks (5 to 20 years depending on location) and exemptions from import duties on equipment.
• Access to Land: Low-cost or free government land is often available for the construction of renewable energy projects.
• Sovereign Guarantees: For large-scale projects, there may be sovereign guarantees to assure investors of SATBA’s creditworthiness.

Installed Projects

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Mokran Solar Power Plants Complex

• Location: Kerman Province.
• Capacity: 20MW
• Details: was built in 2017 with 76,912 solar panels. The Swiss company Durion AG financed the project, which was supervised by a German company.

Mahan Solar Power Plant

• Location: Kerman Province.
• Capacity: 20MW
• Details: was commissioned in July 2017 and has plans to be expanded to 100 megawatts in the future.

Sirjan Solar Park:

• Location: Kerman Province.
• Capacity: 10 MW (expandable).
• Details: One of the largest solar parks in Iran, designed to provide clean energy to the grid and reduce dependence on fossil fuels.

Kerman Solar Power Plant:

• Location: Kerman Province.
• Capacity: 7 MW.
• Details: This project focuses on using photovoltaic technology to generate electricity and is part of Iran’s broader strategy to increase solar power capacity in arid regions.

Tabas Solar Power Plant:

• Location: South Khorasan Province.
• Capacity: 3 MW.
• Details: A smaller-scale project that contributes to the regional solar energy supply, emphasizing Iran’s focus on leveraging its sunny deserts for solar power.

Ghadir Solar Project:

• Location: Yazd Province.
• Capacity: 50 MW.
• Details: An ambitious project expected to contribute significantly to Iran’s renewable energy targets. It aims to leverage the region’s high solar irradiance.

Projected Projects

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Mapna Solar Projects:

• Location: Various locations across Iran.
• Capacity: Planned installations totaling up to 600 MW.
• Details: Part of a larger initiative by the Mapna Group to invest in and develop large-scale solar power plants throughout Iran.

Saeedabad Solar Farm:

• Location: Fars Province.
• Capacity: 30 MW.
• Details: Scheduled to be a major contributor to Iran’s grid, this project highlights the government’s commitment to expanding its solar infrastructure.

PARMIS ELECTRICAL INDUSTRY CO.

• Website: parmis-co.com
• Location: Rajaei Ave,, Kashan, Arkansas, Iran
• Services: Installation
• Products: Solar Energy

PEYMAN ELECTRIC

• Website: invertergroup.com
• Location: South Lalehzar Ave,, No. 203, Tehran Electric commercial complex, Boshehri Alley, Iran
• Services: Recycling Services
• Products: Battery Charger, Lead Acid Batteries, Rechargeable Battery, Solar Energy, Solar Photovoltaic Products, INVERTERS

Yekta Behineh Tavan

• Website: yektabehan.com
• Location: Unit 305, #5 Ghadir Alley, Azadi Av., Tehran 1458889415, Iran
• Services: Construction, Consulting, Design, Engineering, Installation
• Products: LED Lighting, Solar Photovoltaic Systems, Small Wind Turbines, Solar Water Pumping Systems, Solar Space Heatings/Coolings, Solar Hot Water Heaters, Solar Air Conditioning