Setting up a solar power plant has become one of the smartest and most forward-looking decisions for industrial investors, large farmers, and even public institutions in recent years. Why? Because setting up a solar power plant allows you to benefit from government subsidies, reduce energy production and consumption costs by up to 65%, and contribute to the country’s green economic cycle.
On the way to setting up a solar power plant, you will encounter numerous technical concepts: from choosing the type of industrial solar panel to how to connect to the national electricity grid. For this reason, having a complete and accurate roadmap is essential for success in this area. This article focuses on all the details necessary for setting up a solar power plant and aims to provide practical and realistic answers to all your specialized questions.
Setting up a solar power plant does not end with just installing solar panels. This process includes the stages of accurately calculating the required capacity, choosing a suitable location, reviewing costs and forecasting revenues, obtaining permits, and monitoring operation. All of these steps require careful planning and analysis. In this article, we will help you launch a solar power plant with awareness and confidence by analyzing the types of power plants, examining successful experiences in Iran, and reviewing all the benefits and challenges.
How to start a solar power plant?
When we talk about starting a solar power plant, the first step is to know exactly what a solar power plant is and how it works. A solar power plant, in simple terms, is an extensive system of solar panels that capture sunlight and convert it into usable electricity. Unlike small home systems, the goal of starting a solar power plant is to produce electricity on a large scale. The electricity produced is either fed into the national electricity grid or used for consumption in industries, farms, or manufacturing centers.
The electricity generation system in a solar power plant is based on photovoltaic (PV) cells or concentrated solar thermal systems (CSP). In the photovoltaic type, solar panels move electrons by radiating light and generate electricity. In the CSP type, sunlight is concentrated with the help of mirrors and generates heat to produce steam to turn turbines. The choice between these two types depends entirely on your goal in setting up a solar power plant.
For example, if you plan to build a power plant in an area with direct sunlight and intense radiation, a thermal system is a good option. But if you are looking for faster installation with lower cost and easier maintenance, photovoltaic cells are a better option. These strategic choices determine how profitable setting up a solar power plant will be for you.
One of the important starting points on this path is choosing the type of industrial solar panel that has high durability, suitable efficiency and stable performance in harsh environmental conditions. On the other hand, even the best panels will not perform optimally without proper design and installation of solar panels with precise standards.
Is setting up a solar power plant and investing in it profitable?
Investing in large projects is always accompanied by questions. How much does it cost? What is the return on investment? What are the risks? And is it worth it? These questions become more colorful when it comes to setting up a solar power plant. Because this project is not just a financial investment but a strategic decision for the coming years. But the reality is that starting a solar power plant is economically feasible in the current situation of Iran, one of the few areas that can offer an attractive combination of high returns, low risk and stable income.
Let’s say you decide to start a 100 kW power plant. The initial cost (including equipment, installation, permits and infrastructure) is limited, but in less than 5 years, this cost will be returned from the sale of electricity to the grid. After that, all the net income will remain for you. That is, by starting a solar power plant, you become an income generator instead of a cost for energy.
Another advantage of this type of investment is its stability. Unlike volatile markets, the income from electricity production is made with a guaranteed purchase agreement from the government or a regional power company. That is, even in unstable economic conditions, you have a guaranteed source of income. This feature has made setting up a solar power plant a low-risk option for long-term investment.
In addition to economic benefits, tax exemptions, banking facilities, and government support should not be overlooked. Given Iran’s macro policies in supporting renewable energy, you can benefit from privileges in setting up a solar power plant that do not exist in many other areas, and of course, we should not forget that this investment is not just for financial gain. You are entering a field that has a direct role in reducing fossil fuel consumption, reducing pollution, and creating sustainable employment.
Types of Solar Power Plants and Their Comparison
In the process of setting up a solar power plant, one of the key decisions is choosing the type of power plant. Because the structure, efficiency, technology, and even the maintenance cost of these power plants can have serious differences. Accurate knowledge of the types of solar power plants and their differences makes the design and implementation path clearer.
In general, solar power plants are divided into two main categories:
1. Photovoltaic (PV) power plants
Photovoltaic power plants consist of solar panels that directly convert sunlight into electricity. These types of power plants are easier to maintain than other types. They are faster to install and are very suitable for different regions of Iran, especially areas with medium to high radiation. In many industrial projects, the use of industrial solar panels in these types of systems is common, especially when stability of electricity production is expected in different weather conditions.
2. Concentrated Solar Thermal (CSP) Power Plants
CSP or thermal power plants generate a lot of heat by concentrating sunlight on specific points (usually using mirrors or lenses), which then turns water into steam, which is then transferred to turbines to generate electricity. These systems are usually designed for large scales and areas with strong direct sunlight and very many sunny days. Of course, the cost of construction, maintenance and water consumption in this type of power plant is higher.
To better understand the differences, consider this example:
If you have a 10,000 square meter plot of land in an area with good sunlight and are looking for a quick return on investment, choosing a PV system with the installation of industrial solar panels and using the regional electricity grid is a suitable option. However, if the project is defined in a dry climate with sufficient water resources and focuses on producing large-scale electricity with thermal storage, a CSP system will be a more desirable option. The important point is that when setting up a solar power plant, the only decision-making criteria should not be immediate efficiency or initial cost. Performance stability, system life, expandability, and even the ability to connect to the national grid should also be considered.
Calculating the power required to start a solar power plant
One of the most important steps in setting up a solar power plant is determining the capacity or power required by the power plant. This section not only affects the total cost of the project, but also determines the final income, the payback period, and even the type of equipment used. Therefore, without an accurate calculation that is appropriate to the project’s purpose, one cannot expect a successful result from setting up a solar power plant.
The first step is to determine the main goal of building a power plant
Is the goal simply to sell electricity to the national grid? Or to generate electricity for a factory, farm, or large residential area? The answer to this question determines the calculation path. For example, if your goal is to sell electricity to the grid, the annual production must be sufficient to be economically justified by the government’s guaranteed electricity purchase tariffs. However, if domestic consumption is considered, the annual electricity consumption of the complex must be accurately calculated and then the power plant capacity selected accordingly.
The second step is to estimate the capacity of the power plant
The basic formula used to estimate the capacity of the power plant is based on the amount of energy consumed or produced expected per year.
Suppose you plan to produce 150,000 kWh of electricity annually. By considering the average solar radiation in the area (for example, 5 useful hours per day) and the efficiency of the equipment (for example, 80%), you can calculate what capacity is needed. In this example, a power plant with a capacity of about 40 to 50 kW will be needed to achieve such a level of production.
The third step is the geographical conditions of the project location
In addition to electricity consumption, the geographical conditions of the project location must also be considered. The number of sunny days, the amount of dust, the angle of the sun’s rays and the air temperature all affect the final efficiency of the system. That is why it is essential to conduct a detailed feasibility study using specialized software such as PVsyst or SAM in each project before launching a solar power plant.
An example of a 100 kW project in the Yazd region shows that with an average radiation of about 5.5 hours per day, this power plant has produced more than 160,000 kWh of electricity annually. This means that each kW of installed capacity produces an average of 1,600 kWh of electricity per year. Such statistics can be very good initial criteria for decision-making in new projects.
Steps to Start an Industrial-Scale Solar Power Plant
Starting an industrial-scale solar power plant is a multi-stage project that requires careful planning, technical knowledge, legal permits, and selection of appropriate equipment. Unlike small home systems, these projects are designed in the range of several hundred kilowatts to several megawatts, and each stage must be carried out with great precision so that the final efficiency justifies the investment. Below, we will examine the main stages of this process:
1. Feasibility Study
The first step in starting a solar power plant is to carefully examine the climatic, geographical, and technical conditions of the power plant site. In this stage, factors such as solar radiation, air temperature, wind direction, access to the power grid, and ground conditions are analyzed. The results of this analysis determine the project roadmap and determine whether the project is technically and economically viable.
2. Obtaining permits
To implement the project, it is necessary to obtain legal permits from institutions such as the Ministry of Energy, the Renewable Energy Agency (SATBA), and the Regional Electricity Distribution Company. These permits include a grid connection agreement, construction permit, guaranteed power purchase agreement, and environmental certificate. Without going through this process, the project will not be legally enforceable.
3. Technical design and equipment selection
At this stage, the electrical and mechanical design of the system is carried out according to the capacity of the power plant and the project conditions. One of the most key choices is the type of industrial solar panel. These panels must have high efficiency, heat resistance, long life, and a valid warranty. The choice of the type of inverter, supporting structure, cables, and protective equipment is also determined at this stage.
4. Solar panel installation and physical implementation
After the design, the implementation operations begin. Installing solar panels on structures, cabling, installing inverters, protection systems, and connecting to the grid are all part of this stage. The accuracy of installing the panels at the right angle to the sun, and the proper implementation of electrical installations have a direct impact on the efficiency of the power plant.
5. Initial testing and commissioning
After the installation is complete, the system must be subjected to technical tests to verify and confirm the correct operation of the equipment, the amount of electricity generated, the output voltage, the connection to the grid, and the protection systems. This stage is essential to ensure the stable operation of the power plant in the long term.
6. Periodic operation and maintenance
Starting electricity production does not mean the end of the work. Starting a successful solar power plant requires continuous monitoring, performance checks, cleaning the panels, periodic inspection of equipment, and analysis of production data. A monitoring system can play a very important role in identifying malfunctions and performance drops.
For example, in one industrial project in Khorasan province, the efficiency of the system increased by about 7% by simply modifying the angle of the panels. This means that at the scale of the power plant, a simple change in design or maintenance can create significant profitability.
In short, no step can be eliminated or simplified in the process of setting up a solar power plant on an industrial scale. The success of the project depends on the careful coordination between all these steps.
Costs and Revenues in Setting Up a Solar Power Plant
In any project, especially a project as large as setting up a solar power plant, financial analysis comes first. Investors first of all want to know how much they have to spend and in what period they will make a profit. The answer to these questions depends on several factors, including the capacity of the power plant, the location of the installation, the type of equipment, the guaranteed electricity purchase rate, and also how the system will be maintained during the years of operation.
Main Costs of a Solar Power Plant
Costs are divided into two general categories:
a) Initial investment costs
b) Ongoing maintenance and operation costs
a) Initial investment costs include:
Purchase of solar panels (used in large industrial solar panel projects)
Solar inverters
Support structures and physical infrastructure
Cable laying and protective equipment
Design and technical study costs
Obtaining permits and legal payments
Physical implementation and installation of solar panels
Currently, the cost of constructing each kilowatt of an industrial solar power plant varies depending on the brand of equipment, location of implementation, and exchange rate. However, on average, it can be said that an initial capital of about 30 to 40 million Tomans is required for each kilowatt of installed capacity. This means that for a 100 kW power plant, an initial cost of between 3 and 4 billion Tomans should be considered.
b) Current costs include:
Regular cleaning of panels to maintain efficiency
Periodic inspection of electrical equipment
Potential repairs
Operator or technical staff salaries
These costs are much lower compared to other industries. For example, for small power plants, less than half a percent of the total investment value is spent on maintenance per month.
Revenues and profitability of the solar power plant construction project
But the most attractive part of the story is the revenue. In the government’s guaranteed electricity purchase plan, Satba undertakes to purchase the electricity generated for a period of 20 years at a certain rate. The base rate for power plants smaller than 200 kW in recent years has been about 2,000 Tomans per kWh (with an annual adjustment factor). For larger power plants, this rate is lower but still significant.
In addition to selling electricity, side benefits such as tax exemptions, banking facilities, and government land concessions also make setting up a solar power plant a very attractive option for investors.
Another important point is that in many projects, the efficiency of the power plant has been higher than the predicted amount and the return on investment time has been practically less than 7 years. This has been proven many times in sunny areas of Iran such as Yazd, Kerman, Sistan and even parts of Isfahan.
Successful Experiences in Building Solar Power Plants in Iran
For many who are thinking of starting a solar power plant, observing successful experiences can serve as a practical guide. Fortunately, in the last few years, large projects have been launched in Iran in the field of solar energy that have achieved great success. These projects show that investing in this field is not only economically viable but can also contribute to the sustainable development of renewable energies in the country.
1. 50 MW Solar Power Plant in Khur (Yazd Province)
One of the largest successful solar power plant projects in Iran is the 50 MW solar power plant in the Khur region of Yazd Province. This project, which was launched in 2017, is known as one of the first large-scale solar power plants in the country. This power plant generates an average of more than 120 million kilowatt-hours of electricity annually, which is equivalent to supplying electricity to 35,000 households. This project has also significantly reduced greenhouse gas emissions in the region.
Interestingly, this project, using industrial solar panels and utilizing advanced equipment, has experienced a return on investment in less than 6 years. It is noteworthy that this project has reached the implementation stage in full cooperation with the private sector and the government, and its economic model has been proposed as a model for other solar projects in the country.
2. 10 MW Solar Power Plant in Kerman Province
Another solar power plant that has been launched in Iran in recent years is the 10 MW project in Kerman Province. This power plant has also been able to recover its costs in less than 5 years and create many jobs in the region while generating electricity. This project, implemented in collaboration with foreign and domestic companies, shows that even a small-scale solar power plant can have positive economic and social impacts.
This project, for the first time in Iran, combined industrial solar panels with battery storage systems (BESS), which improved efficiency and reduced fluctuations in electricity production. This is especially helpful during peak hours when the sun is not in the sky and can be used as a practical model for similar projects in the future.
3. Successful experiences in home solar power plants
In addition to large industrial projects, a large number of small home solar power plants have also been launched in Iran in recent years. In many of these projects, the use of solar panel installation systems on the roofs of houses or commercial buildings in remote or low-power areas of the country has been able to meet the need for sustainable electricity. These systems are usually less expensive and easier to install.
One successful example is a project in the mountainous northern region of the country, where by installing solar panels on the roofs of houses, not only was the electricity needed by 50 households provided, but the electricity costs of these households were also reduced by 40%. This experience shows that setting up a solar power plant, even on a small and household scale, can make a big difference in energy supply and reduce costs.
Long-term Benefits of Starting a Solar Power Plant
Starting a solar power plant in the long term can bring many benefits to investors and the country as a whole. These benefits include not only economic and environmental aspects, but also help create job opportunities and sustainable development. Let’s examine together why building solar power plants is cost-effective in the long term.
1. Return on investment and sustainable profitability
One of the biggest benefits of starting a solar power plant is a quick return on investment and the creation of a sustainable income stream. Given the fixed prices and guaranteed purchase of electricity by the government, the investor can expect to recoup the initial cost in less than 7 years and then have a steady and predictable income on an annual basis. For example, solar projects with higher capacities, such as a 50 MW Khor power plant, not only cover costs quickly, but also bring high profits in the years after production begins.
In addition, with increasing energy prices and higher demand for electricity in the country, solar power plants, as a sustainable and fuel-free production source, can always provide the required energy in the long term. This is especially evident in the dry and tropical regions of Iran where solar radiation is high.
2. Saving on energy costs
In the long term, building a solar power plant is profitable not only for investors but also for consumers and large industries. By generating electricity from solar energy, electricity consumption costs are drastically reduced. In many large industries that consume a lot of electricity, the use of industrial solar panel systems can significantly reduce energy costs.
For example, a manufacturing plant that uses industrial electricity can reduce its energy costs by more than 30% by installing a solar power plant with an appropriate capacity. This cost reduction is especially important in energy-intensive industries such as steel, cement and textiles, where electricity costs constitute a major part of the production cost.
3. Supporting sustainable development and reducing greenhouse gases
Another benefit of setting up a solar power plant is helping to reduce greenhouse gas emissions. Solar power plants fully use clean and renewable energy from the sun and do not emit any pollution into the environment during their operation. For this reason, investing in these types of projects not only helps improve air quality and preserve natural resources, but also helps the country achieve international goals for reducing greenhouse gases and combating climate change.
4. Job creation
Setting up a solar power plant on an industrial and large scale can help create thousands of new jobs. From engineers and installation and repair technicians to design specialists and project managers, everyone benefits from these projects. This advantage is especially important in less developed areas of the country that need to create jobs.
For example, in large solar projects in the southern regions of the country, in addition to direct employment in the construction and installation stages, new job opportunities have also been created in the fields of maintenance, supervision and project management. This leads to economic growth and improved social conditions in these areas.
5. Less dependence on fossil resources
The use of solar energy reduces the country’s dependence on fossil resources such as oil and gas. Given the limitations of fossil resources and environmental concerns, the use of renewable energies such as the sun not only helps improve energy security but also reduces pressure on the country’s natural resources. In the long term, this could help stabilize energy supplies and reduce price volatility.
Introducing Shamim Andisheh Company and ways to contact Shamim Andisheh
Shamim Andisheh Company, as one of the pioneers of the solar energy industry in Iran, relies on years of experience and expertise in designing, consulting, selling and installing solar panels, and offers its services to customers in the field of setting up solar power plants and industrial solar systems. With a team of experienced engineers and specialists, this company is able to implement diverse and complex projects on different scales in the best way. From precise advice on choosing the right equipment to designing and installing complete solar energy systems, Shamim Andisheh is known as a reliable partner in this industry. The company’s services, utilizing the latest technologies in the world and complying with international standards, assure customers that they will have the best solar energy solutions for their projects.
If you are looking to set up a solar power plant or install industrial solar systems in large projects, Shamim Andisheh’s team is ready to accompany you on this path with specialized advice and continuous support. For more information and free advice, you can contact us through the company’s contact numbers and official website.
To contact Shamim Andisheh and receive technical advice, more information, or order equipment, you can do so through the following ways:
∴Contact number: 12-44071011 (021)
∴Email: shamim@shamimco.com
∴Website: www.shamimco.com
∴Social networks: Contact us through 09394121002.