Speaking Tuesdayat a joint expert meeting of the Oil and Energy ministries on solar power plant development, Touraj Amraei said Iran has some of the world’s best solar resources, with more than 250 sunny days and annual irradiation of 1,500 to 1,800 kilowatt-hours per square meter in many regions. He said the country’s current energy imbalance, despite its challenges, is a golden opportunity for renewable energy growth.

Citing the latest reports from the International Energy Agency, Amraei said solar energy accounted for about 7% of global electricity generation in 2024. That share is expected to reach 16% by 2035, and combined with wind power, supply 30% of the world’s electricity. He added that for Iran to keep pace with global trends, a 25% to 30% solar share would be reasonable and defensible.

Major Leap Needed in Solar Development

Amraei said the world adds 550 gigawatts of solar capacity every year—several times Iran’s total electricity generation capacity—highlighting that global renewable expansion far outpaces Iran’s current trajectory.

He said the European Union had installed roughly 260 gigawatts of solar capacity by 2024, equal to 2.6 times Iran’s total power capacity. Of that, 170 gigawatts are rooftop systems that require neither substations nor transmission lines.

Amraei said Iran’s renewable capacity remains far below its needs. He estimated rooftop solar capacity in the country at only 250 to 300 megawatts, calling for a significant expansion.

 Dependence on Imported Solar Cells and Components

Amraei said the Knowledge-Based Production Leap Act requires government agencies to generate up to 20% of their electricity from solar sources. However, he noted that Iran remains dependent on imported components in parts of the solar panel and inverter supply chain.

He said Iran lacks operational infrastructure for the third stage of panel manufacturing—polysilicon and solar cell production—leaving the country dependent on imports. While domestic companies are active in panel assembly and ancillary equipment, local cell production meets only about 23% of national demand.

He added that inverter production also needs development. Although 5-kilowatt inverters are produced domestically, Iran does not have mass production for higher capacities. As a result, a plan to localize one million kilowatts of inverter capacity through five knowledge-based companies has been launched.

 Iran’s Real Need: 65,000 MW of Solar in 10 Years

Amraei referred to a study conducted by the vice presidency—though not an official assessment by the Energy Ministry—showing Iran will need 65,000 megawatts of solar capacity over the next decade based on realistic consumption and efficiency scenarios. This would require scaling up solar capacity 50-fold.

He said supplying 30% of Iran’s electricity from solar, in line with global trends, would require producing roughly 200 billion kilowatt-hours of solar power annually, underscoring the need for policy changes and broad regulatory easing.

To reach these targets, he said guaranteed purchase mechanisms must be strengthened and customs clearance for solar equipment must be streamlined. “With current procedures, achieving these goals is not possible,” he said.

 Implementation of 4,000 kW of Hybrid Rooftop Systems

Amraei said that under a Cabinet resolution, the vice presidency is responsible for localizing and promoting solar energy. Before its involvement, only grid-connected systems existed, which became unusable during outages. He said the vice presidency introduced hybrid designs with energy storage.

About 4,000 kilowatts of hybrid rooftop solar have been installed in Tehran, with implementation underway in several other provinces. Hybrid systems allow consumers to use solar power for emergency needs even during grid outages.

Amraei said current guaranteed purchase rates are not attractive to investors given currency fluctuations and need revision. Even the highest tariffs, he said, lack sufficient appeal.

He concluded by saying the vice presidency is ready to support any Oil Ministry entity seeking to expand solar energy through scientific, operational and technological assistance from NTBFs. “Developing solar energy requires broad cooperation and maximum facilitation,” he said.