Solar Panels System for Home and Industry in Iran

by solarman · May 20, 2024

Iran, a nation bathed in sunlight for most of the year, has tremendous potential for harnessing solar energy. With vast deserts and an average of 300 sunny days, the country is poised for a significant shift towards renewable energy. This article explores the current state, future prospects, and challenges surrounding solar panel systems in Iran. Solar Panels System for Home and Industry in Iran.

Iran has 450 MW of solar power, which is less than 1% of its installed capacity, as of 2021. This is low compared to the global average and the country’s electricity demand. However, Iran has a lot of potential for solar energy because of its location near the equator and the fact that 90% of the country receives enough sunlight to generate solar power for 300 days a year.

Iran’s government is encouraging the adoption of solar energy through competitive tenders. In April 2022, the Renewable Energy and Energy Efficiency Organization (SATBA) of Iran qualified 85 companies for a 4 GW solar PV tender. As of June 2022, solar energy accounted for 502.1 MW of Iran’s total operational renewable energy capacity of 956.20 MW. By the end of 2022, Iran had installed and commissioned around 83 MW of PV systems, reaching a cumulative installed capacity of about 539 MW.

Iran’s provinces of Yazd, Fars, and Kerman produce the most solar energy, with approximately 68 MW, 58 MW, and 47 MW, respectively. Kerman province is considered the center of the country’s solar energy because it receives sunlight for more than 300 days a year.

Iran also has a Cabinet directive that requires all state-run offices to generate 20% of their power from renewable energies, especially solar photovoltaic panels, as of June 2022. The Ministry of Energy has also committed to purchasing electricity produced by families for 20 years.

A Growing Industry with Ambitious Goals In Iran

The Iranian government recognizes the importance of solar energy and has set ambitious goals to increase its adoption. The aim is to install 10,000 megawatts (MW) of renewable energy, including solar, within the next few years. This ambitious plan reflects a commitment to diversifying the energy mix and reducing reliance on fossil fuels.

Early Steps and Current Status for Solar in Iran

Despite the abundant sunshine, Iran’s current solar energy production remains relatively low. In 2020, solar provided only around 900 MW of electricity, with contributions from both large-scale solar power plants and rooftop installations on homes and businesses. However, the industry is experiencing steady growth. In 2022 alone, over 80 MW of new solar capacity was added, bringing the total installed capacity to roughly 540 MW.

Benefits of Solar Power in Iran

The widespread adoption of solar panels offers several advantages for Iran:

Reduced Reliance on Fossil Fuels: Solar energy is a clean and sustainable alternative to fossil fuels. By generating its own electricity through solar, Iran can decrease dependence on imported oil and gas.

Environmental Protection: Solar power plants do not produce harmful emissions, unlike traditional power plants that rely on burning fossil fuels. This contributes to cleaner air and a healthier environment.

Energy Security: Developing domestic solar power reduces Iran’s vulnerability to fluctuations in global energy prices and supply disruptions.

Job Creation: The growing solar industry creates new jobs in manufacturing, installation, and maintenance of solar panels. This can boost the economy and provide valuable skills development opportunities.

Reduced Energy Costs: In the long run, solar power can offer a cost-effective way to generate electricity, especially for homes and businesses that install rooftop systems. This can lead to lower electricity bills for consumers.

Challenges and Considerations

While the potential for solar energy in Iran is undeniable, there are challenges to overcome:

High Initial Investment: The upfront cost of installing solar panels can be high, particularly for large-scale power plants. This can be a barrier for some potential investors.

Government Incentives: Government support through subsidies and favorable regulations is crucial for encouraging wider adoption of solar technology.

Grid Integration: Integrating large amounts of solar energy into the existing electrical grid requires careful planning and infrastructure upgrades.

Public Awareness: Raising public awareness about the benefits of solar power and encouraging investment in residential and commercial rooftop systems is essential.

How many households in Iran have solar panels?

As of September 2022, Iran’s household sector had a total rooftop solar capacity of 90 MW. In October 2023, the Tehran Times reported that 30,000 solar panel systems were being provided to households, with the number expected to double by the end of the Iranian year (March 19, 2024). The government pays 90% of the cost of each system.

Iran has a large desert area, which gives it a high potential for installing solar photovoltaic (PV) systems. In 2022, Iran installed about 83 MW of PV systems, reaching a cumulative capacity of around 539 MW by the end of the year. However, as of May 2024, solar and wind only account for 0.6% of Iran’s total electricity generation, while fossil fuels account for 94%.

How much does a solar system cost in Iran?

The cost of a solar panel system in Iran depends on several factors, but here’s a breakdown to give you an idea:

Size and Capacity: The bigger the system (in terms of power generation capacity), the higher the cost.
Type of System: There are two main types:

Large-scale solar power plants: These generate electricity for entire communities and cost millions of dollars. For reference, a 10 MW plant might cost around $16 million [1].

Home rooftop systems: These are smaller and cater to individual households. Their price can range from a few thousand dollars to tens of thousands, depending on the desired capacity. You can find systems on Alibaba.com listed between $5,088 and $33,625 [2].

Here are some additional points to consider:

Government Incentives: Iran might offer subsidies or financing options that can bring down the upfront cost for homeowners and businesses.

Panel Efficiency: More efficient panels tend to be more expensive, but they also generate more electricity per square meter, potentially saving money in the long run.

Installation Costs: Labor and other installation costs can vary depending on the complexity of the system and the chosen installer.

Solar panel installation cost in Iran

As of October 2021, the cost to install a kilowatt-hour capacity of a solar power station in Iran is 140 million rials, or about $3,300. However, the cost of solar panel installation can vary depending on the panels used, the property type, and the location. Installation costs are usually calculated per watt, with a typical cost of $2.50–$5 per watt. For example, a 5-kW system that costs $3 per watt would cost a total of $15,000.

Solar panel prices in Iran can also vary depending on the type and quantity of panels. Some examples of solar panel prices in Iran include:

Germany Longi Solar Panel: $0.11–$0.16
Evo N Type HJT Bifacial Solar Panel: $0.09–$0.12
Sunway high quality 9bb solar panels: $0.19–$0.21
Jinko Monocrystalline PV Solar Panel: $0.09–$0.12

Solar energy is a significant renewable energy source for Iran due to the amount and frequency of sunshine. The government of Iran has taken various initiatives to promote solar energy, and households in Iran have installed 4,500 rooftop PV stations. The government guarantees to purchase the surplus electricity generated by these units at a guaranteed price.

What is the cost to do 1kw solar panel system in Iran?

The cost to install a 1 kW rooftop solar system in Iran can range from 45,000–85,000 Rials per kilowatt (kW). The cost of a 5 kW system can range from 22,500–42,500 Rials per kW. The price of solar panels in Iran can vary depending on the type of panel and the quantity.

Accurately pinpointing the cost of a 1kW solar panel system in Iran is difficult due to several factors:

System Complexity: Even a 1kW system requires various components beyond just the panels, like inverters, mounting structures, and cables. Prices for these can vary depending on quality and brand.

Labor Costs: Installation labor costs can fluctuate based on the installer’s experience, location, and project complexity.

Government Incentives: Iran might offer subsidies that specifically target small-scale systems, significantly reducing the final cost for a 1kW setup.

However, here are some resources that can give you a general idea:

Online Marketplaces: Websites like Alibaba.com list complete solar panel systems for Iran, sometimes including 1kW options. While listed prices might be a starting point, remember these can vary [1].

Industry Reports: Reports on the Iranian solar industry might mention average installation costs per watt. If you can find such reports, they might provide a benchmark for a 1kW system.

Here’s a possible approach to estimate the cost:

Check Online Marketplaces: Look for 1kW solar panel systems on Alibaba.com or similar platforms catering to Iran. This can give you a ballpark figure for the equipment itself.

Contact Local Installers: Reach out to reputable solar panel installers in your area. Explain your interest in a 1kW system and ask for a quote. This will provide the most accurate estimate considering current market prices and potential government incentives in your region.

Talk about 5 solar panel installer companies in Iran.

While it’s challenging to definitively rank companies due to market dynamics, here are 5 Iranian companies involved in solar panel installations:

Sun-Air Research Institute (SARI): Based in Iran, SARI focuses on research and development in solar energy. They might also offer installation services, particularly for larger-scale projects.

Sunan: This Iranian company offers solar solutions for various applications, including rooftop installations for homes and businesses. Their website or social media presence (if available) could provide more details on their services.

TABAN Energy: Operating in Iran, TABAN Energy seems to be involved in different renewable energy solutions. They might offer solar panel installations as part of their services. Checking their website or contacting them directly can confirm if they provide residential installations.

Tuan Resana Kadus: Located in Iran, Tuan Resana Kadus appears to specialize in renewable energy projects, potentially including solar panel installations. Their website or contacting them directly can clarify their residential installation services.

Kahkeshan Energy Khorshid: Based in Mashhad, Iran, Kahkeshan Energy Khorshid focuses on solar products and offers installation services. They handle projects for various sectors, including residential and commercial buildings. Their website or reaching out to them can give you specific details about their residential solar panel installation services.

Government support in solar panel system in Iran

The Iranian government recognizes the potential of solar energy and offers various forms of support to encourage its adoption:

Financial Incentives:

Subsidies: The government might offer direct subsidies to reduce the upfront cost of solar panel systems, especially for residential and small-scale commercial installations. These subsidies can significantly lower the investment barrier for homeowners and businesses.

Favorable Loans: Some government programs might provide access to low-interest loans specifically for financing solar panel installations. This can make them more affordable and spread the cost over time.

Regulatory Measures:

Feed-in Tariffs: This policy allows individuals and businesses who generate electricity through solar panels to sell the surplus back to the grid at a pre-determined rate. This creates a financial incentive for people to invest in solar power and contribute to the national grid.

Tax Exemptions: The government might offer tax breaks or exemptions for companies or individuals who invest in solar panel systems. This can further reduce the overall cost and make solar a more attractive option.

Simplified Permitting Processes: Streamlined permitting procedures can expedite the approval process for installing solar panels, encouraging wider adoption.

Solar panel financing or Loan facilities in Iran

Obtaining financing for solar panel systems in Iran can involve a combination of government initiatives and private loan options:

Government Programs:

Subsidies: The Iranian government might offer direct subsidies that reduce the upfront cost of solar panels, making them more accessible for homeowners and businesses. These subsidies can sometimes be combined with loan programs for a more manageable investment.

Low-Interest Loans: Government-backed programs might offer special loan schemes for solar installations with lower interest rates than traditional loans. These programs can significantly ease the financial burden of installing solar panels.

Challenges with Government Programs:

Limited Availability: Government programs might have limited funding or specific eligibility criteria, restricting access for some potential beneficiaries.

Bureaucracy: The application and approval process for government subsidies or loans can be complex and time-consuming.

Uncertain Continuity: Government programs and their associated benefits can be subject to change depending on economic and political factors.

Private Loan Options:

Banks: Some banks in Iran might offer loan products specifically for renewable energy projects, including solar panel installations. These loans may have higher interest rates compared to government programs but can provide an alternative if government options are unavailable.

Microfinance Institutions: Microfinance institutions might offer smaller loan options suitable for financing residential solar panel systems. These loans can cater to individual needs and potentially cater to projects not covered by large-scale government programs.

Challenges with Private Loan Options:

Higher Interest Rates: Private loans usually have higher interest rates compared to government-backed options, increasing the overall cost of financing.

Eligibility Requirements: Banks and microfinance institutions will have their own eligibility criteria, including creditworthiness and project feasibility evaluations, which can be challenging to meet for some borrowers.

Collateral Requirements: Banks might require collateral, such as property, to secure a loan, which can be a barrier for some potential borrowers.

Finding the Best Financing Option:

Here’s how you can navigate the options:

Research Government Programs: Look for official government websites or contact relevant government agencies to inquire about current solar panel financing programs and eligibility requirements.

Consult with Banks and Microfinance Institutions: Contact banks and microfinance institutions in your area to explore loan options for solar installations. Ask about interest rates, terms, and eligibility criteria.

Compare Options: Carefully compare the terms and conditions of government programs and private loans. Consider factors like interest rates, repayment periods, and any additional fees.

Seek Expert Advice: Consider consulting with a financial advisor familiar with solar panel financing options in Iran. They can help you understand the different choices and select the most suitable option for your specific situation.

Environmental Benefits of Solar Panels in Iran

Iran’s abundant sunshine makes solar energy a powerful tool for environmental protection. Here are some key benefits:

Reduced Greenhouse Gas Emissions: Solar panels generate electricity without burning fossil fuels, significantly reducing emissions of harmful greenhouse gases like carbon dioxide. This helps combat climate change and air pollution. Studies estimate that solar power plants in Iran can avoid substantial amounts of CO2 emissions compared to traditional power generation [1].

Cleaner Air: By relying less on fossil fuel power plants, solar energy leads to cleaner air. This translates to improved respiratory health and reduced instances of air pollution-related illnesses.

Water Conservation: Fossil fuel power plants require large amounts of water for cooling. Solar panels have minimal water requirements, leading to significant water conservation in a country like Iran where water resources are precious.

Reduced Land Degradation: Unlike traditional energy sources like coal mining, solar panels require minimal land use and don’t cause land degradation. They can be installed on rooftops or dedicated solar farms, minimizing environmental disruption.

Economic Benefits of Solar Panels in Iran

Beyond environmental advantages, solar panels offer a range of economic benefits for Iran:

Reduced Reliance on Fossil Fuels: By generating its own electricity through solar, Iran can decrease dependence on imported oil and gas. This can save valuable foreign currency and secure energy independence.

Lower Electricity Costs: In the long run, solar power can offer a cost-effective way to generate electricity, especially for homes and businesses that install rooftop systems. This can lead to lower electricity bills for consumers.

Increased Energy Security: Developing domestic solar power reduces Iran’s vulnerability to fluctuations in global energy prices and supply disruptions. This creates greater energy security and stability.

Improved Infrastructure: Investments in solar power can lead to upgrades and improvements in the national electricity grid, benefiting the entire energy sector.

Advancements in Solar Panel Technology in Iran

Iran is making strides in solar panel technology:

Domestic Manufacturing: The inauguration of Iran’s first solar panel manufacturing plant in 2022 indicates a move towards self-sufficiency in solar technology. This can reduce reliance on imported panels and potentially lower overall costs.

Research and Development: The Iranian government and research institutions are actively involved in developing more efficient and affordable solar panels. This continuous improvement in technology can make solar energy even more attractive in the future.

Integration with Grid Infrastructure: Efforts are underway to improve the integration of large-scale solar power plants into the existing electrical grid. This allows for efficient utilization of solar energy resources.

How solar panel systems reduce the reliance on traditional fossil fuels for electricity generation and contribute to lower carbon emissions in Iran?

Fossil Fuel Dependence:

Iran’s current situation: Iran relies heavily on traditional fossil fuels like oil and natural gas for electricity generation. This dependence has several drawbacks:

Cost Fluctuations: Prices of oil and gas can be volatile in the global market, making energy costs unpredictable for Iran.

Import Reliance: Iran might need to import some of its fossil fuels, leading to dependence on foreign resources.

Solar Power as a Solution:

Harnessing Sunshine: Iran has abundant sunshine throughout the year, making it ideal for harnessing solar energy.
Electricity Generation: Solar panels convert sunlight into clean electricity, reducing the need for fossil fuel power plants. This translates to:

Reduced Oil and Gas Consumption: As solar generates more electricity, the demand for fossil fuels for power generation falls.

Lower Reliance on Imports: Greater reliance on domestic solar power reduces dependence on imported oil and gas.

Impact on Carbon Emissions:

Fossil Fuels and Emissions: Traditional power plants burning fossil fuels release harmful greenhouse gases like carbon dioxide (CO2) into the atmosphere. This contributes to climate change and air pollution.

Solar Power and Clean Energy: Solar panels generate electricity without any emissions, effectively eliminating CO2 and other pollutants associated with fossil fuel power plants. This leads to:

Cleaner Air: Reduced reliance on fossil fuels leads to cleaner air, improving public health and reducing respiratory illnesses.

Mitigating Climate Change: By lowering carbon emissions, solar power helps combat climate change and its negative consequences.