A total of 110,000 rooftop photovoltaic panels, each with a capacity of 5 kilowatts, are being set up for underprivileged families in rural areas not only to help boost their income but also to cut the dole queue, said the director general of Small-Scale Solar Power Stations Development Department at Iran's Renewable Energy and Energy Efficiency Organization (Satba).
“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,” Jafar Mohammadnejad Sigaroudi was also quoted as saying by ISNA.
The ministry is obliged to pay 11 cents for each kilowatt of power. Each 5-kW installation costs at least $5,000, a major part of which will come in the form of low-interest loans to be repaid in installments within 10 years.
The initiative will raise the national power grid’s generation capacity by 550 megawatts.
According to the official, 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 900 MW of the total annual output of 86,000 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 11 cents, meaning households selling one kilowatt can earn $22 per month. A 5-kW installation will earn a minimum of $110 per month.
With more than 300 sunny days in a year, Iran has huge potentials to expand solar farms and attract investments.
Funding Constraints
Private companies have invested over $1 billion in the gradually expanding renewable sector, mainly solar and wind.
Due to government funding constraints, private firms are expected to play a bigger role in promoting clean energy if the purchasing prices are reasonable.
The government, with the help of the private companies, plans to raise the current share of renewables to 4,000 MW by 2024.
According to Energy Ministry data, green energy figures show 44% constitute solar, 40% wind power, 13% small hydroelectric plants, 2% geothermal and 1% biomass.
The development of renewables is expanding globally, according to the International Energy Agency. Renewables will present the largest single source of electricity production growth over the next five years by rising over 26% by 2022 from 22% in 2017 – a remarkable shift in a short period.
IEA estimates that by 2023, the amount of global electricity generation coming from renewables will be higher than today’s combined electricity demand of China, India and Brazil.
Scientists claim that the potential and the technology is there to achieve almost 100% reliance on renewable energy by 2050, if major policy changes are made worldwide.
There are more than 115 large solar farms in the country and around 4,000 small-scale solar installations in cities and villages.
Over 2,500 rooftop photovoltaic power stations will be set up by next year, mainly in rural areas.
Renewable energy is the least expensive option for improving access to electricity, reducing air pollution and cutting CO2 emissions. It also contributes to sustainable socioeconomic growth, boosting global gross domestic product growth by 1%, employing close to 29 million people and generating a 15% increase in welfare, mainly through health benefits from reduced air pollution, according to a report of the International Renewable Energy Agency.
Renewables can also help transform unsustainable production and consumption patterns, protect biodiversity, reverse deforestation and combat land degradation.
