Guaranteed Renewable Power Purchase in Iran
A feed in tariff (FIT) scheme has been enacted and enforced in Iran. According to this scheme, the Iranian government sets a fixed price for purchase of renewable power, and guarantees to pay it to producers, over a long period of time, for each unit of electricity or kilowatt-hour (kWh), fed into the grid.
In 2015, the Iranian Ministry of Energy made fundamental improvements in the FIT program based on successful models worldwide, which presents resolute support of Iranian government to develop renewables. In addition to revising the rate and term of the tariffs, the Ministry of Energy has set technology-specific and size-specific tariffs to guarantee the profitability of different projects specially photovoltaics.
For instance, the following prices have been set for solar PV projects: 8,000 IRR/kWh for projects with capacity less than 20 kW; 7,000 IRR/kWh for projects less than 100 kW
In this regard, the Renewable Energy and Energy Efficiency Organization (SATBA) which is responsible for all missions and legal operations on renewable energy in Iran, signs a power purchase agreement with the producer, and guarantees to purchase the entire electricity generated for twenty years at rates adjusted annually according to the inflation. The support scheme is budgeted through renewable electricity charges on the electricity bills delivered to all consumers.
For more information on this, you may visit the SATBA website.