Feasibility Study of Establishing a Solar Cell and Module Factory

Feasibility Study of Establishing a Solar Cell and Module Factory

Project Date : 2018
Employer : Government of the Islamic Republic of Iran The Supreme Council of Iran’s Free Trade, Industrial & Special Economic Zones

Electricity is the most important and essential factor in the development of a country's industries
which humans’ lives depend on it. Actually, life without electricity is not possible since
electricity is one of the most important factors in development of infrastructures and countries.

Using too many fossil fuels has affected life and environment and as it is eventually ending by
near future, we must figure out some other ways to compensate the lack of energy and fossil
fuels resources, so using renewable energy sources like wind, solar, sea waves, biomass and etc.
is the best way to substitute fossil fuels.

Earth receives 1000 joules per second in only one square meter from the sun; all it takes is just to
develop technology to collect this energy from the sun. Due to the high demand for electricity,
the need to supply sufficient equipment is continuously growing.

Solar panels can be used and installed on top of roofs, yards or even in deserts or anywhere that
sun touches the surface of the earth. Not only solar panels produce pure energy with zero
pollution, but also they are extremely cheaper than fossil fuels and other types of energy

Currently, a major part of consumed energy in Iran is supplied from fossil fuels. Also, the
construction of several dams and the completion of the Bushehr nuclear power plant in recent
years have increased the share of nuclear energy and hydroelectric power in Iran. However, Iran
is located in a warm and dry zone and using water resources to produce electricity is not
sustainable. On the other hand, disadvantages of nuclear power plants outweigh their advantages
and construction of such plants has been stopped due to the harm they do to the environment. All
these reasons have led investors to invest on renewable energy power plants to supply the
demand for electricity in the world.

Despite the fact that Iran has a great potential for expansion in renewable energy, especially in
establishing solar power plants, it needs to take a long journey to cope with other countries in the
world in this field.

Meanwhile, there is a huge potential for electricity in Iran but it is not reasonable to establish
solar power plants here regarding the fact that most of the equipment is imported.

Investment Potentials:
Interested foreign and domestic investors for establishing solar power plants
High growth rate on construction of villas in remote areas
Lacking electricity in rural areas
Living large part of the community as nomads
Urban and rural citizens’ intention to produce electricity through clean and renewable
energies and selling the extra electricity)
Vast usage in agriculture for pumping water
Lightening parks, highways, streets and etc.
Industrial use to supply electricity and Cathodic Protection of oil and gas pipelines and
It should be noted that Iran is a country which is located in the solar radiation belt, therefore,
there is a high potential for solar energy as it receives more radiation from the sun than other

Advantages of Investment in Solar Farms:
Many sunny days in a year
Government-guaranteed purchase of produced electricity
Liquid fuel delivery to solar farms
High efficiency of renewable energy plants
There are 14 operating solar farms in Iran with total capacity of 114.6 MW. Electricity produced
by one of these solar power plants is used for domestic consumption of electricity at a gas power
Establishing solar panel units can be very profitable as it plays an important role in reduction of

Advantages of Investment in Maku Free Zone:
Inexpensive and proficient workforce
Inexpensive energy costs
Inexpensive land in comparison with mainland
Customs duties exemption for importing machinery
Value added law
20-year tax exemption from customs duties (according to Free Zoneslaw)

Increase in demand for energy and government plans to supply energy from renewable energy
sources, increase in licenses issued for the construction of solar power plants, increase in solar
power plants and guaranteed power purchases have increased the need for initial equipment for
construction of power plants.

Therefore, considering the import of equipment and withdrawal of currency from the country, it
seems necessary to create a factory for production of basic equipment, such as production of
solar panels. Solar panels are used as a consumer goods of power plants. Considering that
production is the main aspect in creating jobs, increasing productivity and economic
development, investment in the construction of a solar cell and module production plant in Maku
Free Zone is highly desirable.



 Solar Cell and Module Factory


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