Solar market in Iran: a considerable potential still untapped?

The potential for solar systems is high in sunny Iran – but organizing such projects can be quite difficult for foreign companies. (Photo: Pixabay/Peggy_Marco)
The potential for solar systems is high in sunny Iran – but organizing such projects can be quite difficult for foreign companies. (Photo: Pixabay / Peggy_Marco)

Iran could become an attractive market for the international solar industry. Interested companies now have different options to get information about the solar market in Iran.

Iran is a booming market for solar energy. High solar irradiation (4.5 to 5.5 kWh/m²) and a favorable climate for PV plants make it possible to produce as much as two times the amount of solar power as some European countries, according to a study of the German solar organization BSW-Solar.

The government in Tehran has introduced new feed-in-tariffs for renewable energies. The new tariff will be valid until the end of the next Iranian year – until March 21st 2017. Additionally, a new remuneration for plants with a capacity of 30 MW has been introduced. Compared to 2015, the tariffs have declined by 18 to 43%, but are still attractive, provided that fitting financing options are available.

Due to the end of sanctions against Iran, the country now has access to the international finance market again. This makes financing of projects in Iran much easier. Nevertheless, companies who want to operate on the Iranian market still have to work in cooperation with a local business partner. Additionally, financing projects has to be organized by the project developer. It is advisable to take out a loan with a German or European bank because of the high interest rates. In addition, German companies can now qualify for export credit guarantees that facilitate doing business in Iran.

Companies interested in engaging in the solar business in Iran can attend the first Intersolar Summit in Tehran on 15 November 2016. An additional webinar is being organized by Solar Promotion on August 19th 2016 to give solar businesses a first insight about challenges and opportunities in Iran. You can find more information about the webinar here or register for the webinar here

Tanja Peschel / Solar Promotion

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