Solar Investment: A Golden Opportunity in the Green Energy Market and SATBA Contracts
Solar investment has become an attractive and profitable option in Iran. There are two main methods for selling electricity from solar power plants: guaranteed contracts with SATBA and selling on the Green Energy Exchange (Bourse). Each method has its own rates and conditions.
What is the Payback Period?
The payback period is the time it takes for an investor to recover the initial project costs through electricity sales. This period is calculated based on the electricity sales revenue.
Electricity Pricing and Its Impact on Payback Period
In 2025, the electricity price under SATBA contracts is about 3,150 IRR per kilowatt-hour; however, electricity prices on the Green Energy Exchange can reach up to 5,500 IRR or even higher. Therefore, higher prices lead to a shorter payback period.
Payback Period in Real Projects
Based on real projects, a 1-megawatt solar power plant with an initial investment of around 350,000 USD has a payback period ranging from 3 to 6 years. This range depends on the electricity sales method. Smaller plants, such as 200 kW, usually have longer payback periods.
Why is Solar Investment Attractive?
Solar power plants are among the most popular investment options in Iran due to their low operating costs and long lifespan. This advantage ensures long-term profitability despite the high initial costs.
Factors Affecting Project Profitability
Besides equipment costs and electricity prices, other factors influence profitability. These include geographical location and solar irradiance, quality of installation and maintenance, and changes in government policies and energy market regulations.
⚠️ Key Note: Solar investment requires high upfront costs but has low operating expenses. There are risks such as policy changes and market regulations. Nevertheless, it remains a suitable option for investors seeking stable and sustainable returns.
For specialized consultation and precise project evaluation, contact IPM-Assist experts.
