Iran Solar Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The iran solar energy market size in terms of installed base was valued at 2.5 gigawatt in 2025 and estimated to grow from 3.41 gigawatt in 2026 to reach 16.14 gigawatt by 2031, at a CAGR of 36.45% during the forecast period (2026-2031). This report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Grid Type (On-Grid and Off-Grid), and End-User (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Iran Solar Energy Market Trends and Insights

SATBA Feed-in Tariff Revival Boosts Bankability

The restored 20-year FiT, indexed to foreign-exchange rates, removes off-taker risk and shields returns from devaluation. Solar projects that once stalled at 3% of annual capacity targets now progress as SATBA has granted permits exceeding 29 GW, creating a substantial development pipeline. Domestic pension funds welcome inflation-protected yields, and preliminary talks on rial-denominated green bonds indicate emerging depth in the capital market. Early grid-synchronized projects validate cash flows, encouraging follow-on investment, and the multiplier effect accelerates the Iranian solar energy market beyond official forecasts.

10 GW Industrial Captive-Solar Exemption from Load-Shedding

Guaranteed grid access for self-generation provides energy-intensive plants with a clear arbitrage: replacing blackout downtime, which cuts summer output by up to 40%, with a predictable solar supply. The 600 MW Aftab-e-Sharq complex, co-developed by Mobarakeh Steel, demonstrates how captive solar reduces operational volatility and cuts CO₂ emissions by 2.5 million tons annually. Spatial clustering around industrial corridors reduces infrastructure costs per MW and fosters shared maintenance ecosystems, thereby deepening solar’s competitiveness in manufacturing value chains.

Subsidized Fossil-Fuel Tariffs Undercut Solar LCOE

Electricity priced near USD 0.04/kWh distorts economics, keeping solar LCOE at a premium, especially for residential customers. Subsidy reform is politically sensitive, yet gradual industrial tariff rises signal an implicit recognition that the fiscal burden is unsustainable. Differential price adjustments now encourage corporates to adopt renewables, but household uptake lags until broader subsidy rationalization narrows the gap.

Other drivers and restraints analyzed in the detailed report include:

• Nomad & Rural Mini-Grid Roll-Out (28,000 Kits)
• Import-Duty Waiver on Bifacial Modules & Trackers
• FX Liquidity Crunch for Imported Components

Segment Analysis

Solar PV accounted for 97.43% of Iran's solar energy market share in 2025, as every new megawatt added since late 2023 has used crystalline-silicon modules. The Iranian solar energy market size devoted to PV is projected to grow at a 36.12% CAGR through 2031, as policymakers have eliminated regulatory pathways for water-intensive CSP, opting instead for a single-technology platform that standardizes engineering, O&M, and grid-code compliance. Iran's 300 sunny days and direct normal irradiance above 2,200 kWh/m² raise PV capacity factors to 23% in southeastern deserts, keeping levelized costs below subsidized gas peaker plants over 20-year FiT contracts.

Technology consolidation further trims soft costs as EPC firms reuse design templates, procurement contracts, and workforce training modules. Duty-free access to bifacial panels and single-axis trackers enables developers to increase yield by up to 30% at flat capital expenditure, locking in superior economics for the Iran solar energy market size earmarked for utility projects. The absence of rival technologies also simplifies supply-chain localization, enabling Tehran and Isfahan factories to scale module assembly lines without splitting volume across multiple process flows. Continued global price declines for mono-PERC and TOPCon wafers, therefore, directly feed into domestic capex savings, sustaining PV's market share through 2031.

Complete Report Scope:

• By Technology
  • Solar Photovoltaic (PV)
  • Concentrated Solar Power (CSP)
• By Grid Type
  • On-grid
  • Off-Grid
• By End-User
  • Utility-Scale
  • Commercial and Industrial (C&I)
  • Residential
• By Component (Qualitative Analysis)
  • Solar Modules/Panels
  • Inverters (String, Central, Micro)
  • Mounting and Tracking Systems
  • Balance-of-System and Electricals
  • Energy Storage and Hybrid Integration

List of Companies Covered in this Report:

• Mapna Renewable Energy
• SATBA-backed Ghadir Solar
• JinkoSolar Holding Co. Ltd.
• Carlo Maresca SpA
• KPV Solar GmbH
• Hanau Energies
• Yekta Behineh Tavan
• Kahkeshan Energy Khorshid
• Sunir Co.
• Iran Renewable Energy Association (private IPP cluster)
• Renewable Power Generation Co. (Monenco)
• TotalEnergies (pre-sanction MoU)
• Canadian Solar Inc.
• Trina Solar Co. Ltd.
• Longi Green Energy Technology Co. Ltd.
• Suntech Power Co.
• Yingli Solar
• Abengoa Solar
• BrightSource Energy
• GIG (Green Investment Group)

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support