The Iranian government has unveiled a sweeping energy transition initiative to decouple all state institutions from the national power grid, prioritizing off-grid photovoltaic (PV) systems to tackle chronic electricity shortages and accelerate renewable energy adoption.
Facing recurring blackouts—including peak-summer deficits exceeding 26,000 megawatts (MW)—the state-run Renewable Energy and Energy Efficiency Organization (SATBA) will lead a phased rollout. Government offices will install rooftop solar arrays to achieve energy self-sufficiency, followed by eligible schools, universities, and sports complexes. SATBA’s director emphasized the plan’s dual role in reducing grid strain and setting a “renewable energy benchmark” for private sectors.
Currently, renewables account for just 1.8% of Iran’s 94.5-gigawatt (GW) power mix, a figure Energy Minister Abbas Aliabadi aims to transform. Announcing the “2026 Renewable Capacity Expansion Program,” he pledged to add 11.5 GW of solar capacity by March 2026—a 25-fold increase from current levels. To fast-track development, Tehran has approved 35 GW of renewable energy projects for domestic and foreign investors, spanning solar, wind, and hybrid systems.
Iran’s solar potential is among the world’s highest: Tehran averages 2,800–3,200 annual sunlight hours, with daily irradiance of 4.5–5.5 kWh/m². To fund the transition, the government will allocate $5 billion in concessional loans from its sovereign wealth fund for PV infrastructure over four years.
The initiative extends beyond public buildings. Minister Aliabadi outlined a roadmap to deploy renewables in industrial parks, public utilities, and rural electrification projects, underpinned by policy incentives, subsidized financing, and international partnerships. Iran has signed agreements with “multiple nations” to co-develop PV technologies, share equipment, and achieve a 12% solar share of total generation by 2026—up from 0.6% today.
Analysts view the strategy as both a crisis response and a structural pivot. “By prioritizing government-led solar adoption and leveraging foreign expertise, Iran aims to diversify away from fossil fuels while stimulating a green industrial ecosystem,” said energy economist Sara Rahimi. The plan could create 120,000 jobs and reduce carbon emissions by 20 million tons annually, according to SATBA projections.
