Iran Targets 10,000 MW Renewable Energy Capacity

  • Iran plans to install 5,500 MW of new solar capacity by March 2026, advancing toward its 10,000 MW renewable energy target to close the electricity gap.
  • SATBA is scaling up rooftop solar with low-interest loans, guaranteed purchase tariffs, and a new online platform.

Iran plans to install 10,000 megawatts of renewable energy capacity by March 2026 to close its electricity gap and speed up the energy transition.

Jafar Mohammadnejad, Deputy for Investment at the Renewable Energy and Energy Efficiency Organisation (SATBA), said Iran will add 5,500 megawatts of new solar power this year alone. He told state broadcaster IRIB that the new capacity will ease pressure on the grid during peak consumption periods.

The Ministry of Energy has launched low-interest loan programmes to help households install rooftop solar systems. It has also partnered with support agencies to fast-track the rollout. Iran uses this decentralised model to reduce transmission losses and limit environmental damage.

“This model strengthens energy security and climate action,” said Mohammadnejad.

SATBA has already laid the groundwork to support more than 10,000 megawatts of renewable energy. The agency plans to scale that capacity to 30,000 megawatts in the coming years.

Under a new feed-in tariff scheme, the Energy Ministry guarantees power purchase agreements at 4,600 tomans (about $0.09) per kilowatt-hour. The government has launched a digital platform to streamline applications, and over 220 certified companies now supply and install solar equipment nationwide.

SATBA plans to roll out 550,000 residential solar systems on rooftops and household yards. In recent weeks, Iran’s green energy trading board priced solar electricity at around 60,000 rials per kilowatt-hour, reflecting growing investor interest.

Officials continue to prioritise solar power, citing Iran’s high solar irradiation levels. Solar plants typically run for 20 to 25 years, providing long-term environmental and economic returns.

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