Market Trends of Iran Solar Energy Industry
Solar Photovoltaic (PV) to Dominate the Market
- The Iranian government is providing a feed-in tariff to attract private companies to invest in the renewable market by offering them long-term contracts based on the cost of electricity generation from each technology. The Iranian government also planned to install 500 megawatts (MW) of new solar energy installations by the end of 2022.
- Iran, due to its vast desert area, has a very high potential for the installation of solar photovoltaic (PV) systems in the future. Iran has an extremely high level of energy consumption per head of population. According to the government of Iran, electricity consumption is estimated to be 80% above average.
- In 2022, around 83 MW of PV systems were installed and commissioned in Iran, reaching a cumulative installed capacity of approximately 539 MW of PV at the end of 2022.
- In May 2022, SATBA, the Iranian organization for renewable energy and energy efficiency, solicited proposals from companies for solar power plants with a combined total capacity of 4 gigawatts throughout the country.
- Therefore, based on the above projects, the solar photovoltaic (PV) segment is likely to dominate the market in the forecast period.
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Increasing Solar Energy Installations to Drive the Market
- According to the Iranian government's 6th Development Plan, the government aims to install a renewable capacity of 7,500 MW of renewable energy by 2030. The government has set a target to increase its renewable energy share of electricity production by up to 12% by 2030.
- Furthermore, the government aims to become a net-zero-emission economy by 2050. These policies are likely to increase investment in solar energy projects, which in turn will lead to higher sales of solar PV inverters in the country during the forecast period.
- In September 2022, according to the Iranian energy ministry, solar rooftop electricity increased by 20 MW. And the total rooftop solar capacity of Iran's household sector reached 90 MW.
- In January 2022, to reach the long-term goal of a cumulative renewable capacity of 30 GW, the Iranian Energy Ministry announced plans to install 10 GW of renewable capacity (including conventional hydropower) by the end of 2026.
- Hence, the above points indicate that increasing solar energy installed capacity is expected to drive the Iranian solar energy market in the forecast period.
