The government is preparing a plan of action based on which solar power generated by private companies and households will be sold without state interference, a deputy energy minister said Tuesday.
As per law, the government buys electricity from large solar plants and small photovoltaic stations. However, “with the new policy, people and private companies can directly use the electricity they produce, sell it to others or export it,” Seyed Mohammad Sadeqzadeh was quoted as saying by the Energy Ministry news portal, Paven.
One of the reasons behind the plan is the government’s limited financial resources to pay (subsidize) electricity and the other is the oft-mentioned government decision to downsize and privatize.
In the past five years the number of private companies active in the renewable sector -- wind and solar -- has shot up from three to over 500. Private sector investment in renewable projects now exceeds $1 billion.
Iran meets more than 80% of its electricity demand from thermal power that run on fossil fuels. Of the total 81,000 MW capacity, only 710 MW comes from renewables. One of the declared goals of the government is to move toward non-fossil fuels and clean energy.
Over the past five years the number of private companies active in renewables -- wind and solar power -- has shot up from three to over 500. Private investments in renewable projects now exceeds $1 billion
Sadeqzadeh, also the head of the state-owned Renewable Energy and Energy Efficiency Organization (Satba), said Iran has the know-how and capacity to manufacture most of the equipment required for generating solar power. Close to 85% of the equipment, including photovoltaic panels, cables and transformers, are manufactured by domestic companies.
The official added that there are 50 large solar power plants in the country. “With more plants under construction in different regions, another 500 MW of renewable electricity will be added to national capacity by 2021.”
Expanding solar farms and rooftop photovoltaic power stations will reduce consumption of fossil fuels and curb environmental pollution.
It will help create jobs, especially in rural areas, where people are migrating in unusually large numbers due to the worsening economic conditions.
Each photovoltaic panel with one kilowatt capacity can generate 200 kW of power in 30 days. Currently, Satba buys each kilowatt of electricity for 8 cents, meaning households selling one kilowatt can earn $16 per month.
Most rooftop installations have 5-kW panels, which produce 1000 kW a month; so 5-kW panels make a minimum of 75$ per month.
Installing a 1-kW panel costs $700, thus households need $3,500 for panels with five kilowatt capacity.
Homes in small towns wanting to set up a rooftop station are eligible for $3,000 in loans from the National Development Fund of Iran that has allocated $750 million to help expand solar power.
