The state-run Renewable Energy and Energy Efficiency Organization (Satba) has increased the guaranteed purchase prices for generating electricity from small-scale photovoltaic (PV) power stations by 25% per kilowatt on average, the spokesman of Iran's Renewable Energy and Energy Efficiency Organization said.
“New prices for generating electricity from small-scale solar power stations [with less than 20 kilowatt capacity] have risen by 20% per kilowatt, reaching 6 cents/kWh. Tariffs for bigger photovoltaic power plants [with a capacity of 20-200 kW] have risen by 30% and now stand at 5.5 cents/kWh,” Jafar Mohammadnejad Sigaroudi was also quoted as saying by IRNA.
In addition to expanding green energy, small-scale plants will generate income for deprived families as the Energy Ministry has guaranteed the purchase of electricity generated by solar sources for 20 years, he added.
Each 5-kW installation costs at least $7,000, a major part of which will come in the form of low-interest loans to be repaid in installments within 10 years.
According to Sigaroudi, around 57 domestic firms have expressed readiness to supply the equipment, including panels and inverters.
Iran is overly dependent on thermal power and renewables account for only 1 gigawatt of the total annual output of 90,000 MW.
Expanding solar farms and rooftop photovoltaic power stations will help reduce the consumption of fossil fuels and curb environmental pollutants.
Each photovoltaic panel with a capacity of 1 kilowatt can generate 200 kW of power in a month.
Satba buys each kilowatt of electricity for 6 cents, meaning households selling one kilowatt can earn $12 per month. A 5-kW installation will earn a minimum of $60 per month.
Huge Potentials
With more than 300 sunny days in a year, Iran has huge potentials to expand solar farms and attract investments.
Avoiding the use of fossil fuels, helping preserve the environment, saving water consumption, ending deprivation, supporting domestic construction, creating employment and developing clean energy are among the advantages of the program.
Solar radiation in Iran is estimated to be about 1,800 to 2,200 kilowatt-hour per cubic meter annually, which is higher than the global average.
Studies show renewable investments in Iran are profitable. Therefore, the Energy Ministry plans to raise annual renewable energy output to 5,000 MW in four years with the participation of private companies.
Currently, 7,000 solar power stations of different sizes are operating in the country.
According to the Energy Ministry data, solar and wind account for 48% and 36% of the domestic renewable power production respectively.
Small-scale hydroelectric plants, waste-to-energy plants and biomass factories constitute 13%, 2% and 1% of the total renewable output, respectively.
Renewables can help transform unsustainable production and consumption patterns, protect biodiversity, reverse deforestation and combat land degradation.