WANA (Sep 22) – Iran has signed its largest-ever economic agreement with China, under which Beijing will supply solar panels with a total capacity of 7,000 megawatts. The financing will be provided through Iran’s National Development Fund.

 

The deal comes at a time when Iran is grappling with electricity shortages and recurring blackouts. Officials and experts say the expansion of renewable energy — particularly solar power — could be a decisive step in addressing the crisis.

 

Urgency of Renewable Development

In recent summers, Iran has repeatedly faced rolling blackouts and heavy pressure on the national grid, underscoring the limits of relying primarily on thermal power plants. The push toward solar energy is seen as both a path to cutting emissions and a means to ensure energy security.

 

Experts stress, however, that rapid progress requires a dual strategy: importing high-quality panels to address immediate shortages, while also investing in domestic production and technology.

 

Imports: A Short-Term Necessity

Iranian companies seeking to expand solar power generation currently face shortages of high-efficiency panels that meet international standards. China — the world’s largest producer of affordable, reliable solar panels — is seen as the only source capable of supplying large volumes quickly.

 

Imported panels not only meet international benchmarks for efficiency and warranty but also create opportunities for technology transfer. This could accelerate the installation of dozens of new solar farms across Iran in the short term.

Technicians install solar panels on a residential rooftop in Tehran, Iran October 11, 2020. Picture taken October 11, 2020. Majid Asgaripour/WANA (West Asia News Agency)

Technicians install solar panels on a residential rooftop in Tehran, Iran, October 11, 2020. Picture taken October 11, 2020. Majid Asgaripour/WANA (West Asia News Agency)

Supporting Domestic Industry: Investing in the Future

At the same time, policymakers warn that imports should not crowd out domestic producers. In recent years, small Iranian firms have made progress in designing solar cells, manufacturing panels, and developing inverters that convert DC to AC.

 

Observers argue that with targeted support — such as low-interest loans, export incentives, and guaranteed government procurement — these companies could be integrated into the supply chain of major projects. Such support would lay the foundation for step-by-step technical self-sufficiency.

 

A Milestone Agreement

According to Iran’s Ministry of Economy, solar power projects have topped the list of foreign investment requests in recent years. The new 7,000 MW deal with China is described as the largest formal contract ever signed in the field of renewable energy.

 

If implemented on schedule, the project is expected to significantly ease summer peak demand by 2026 and offer a long-term roadmap out of the electricity shortage crisis.

 

Balancing Imports and Local Support

The greatest challenge ahead, experts caution, is avoiding a false dichotomy between imports and domestic support. Global experience shows both elements must proceed in tandem: imports to accelerate rollout and technology transfer, alongside strong backing for knowledge-based local firms to achieve independence in production.

 

For Iran today, the optimal path lies in a smart combination of targeted imports and sustained support for homegrown innovation.

 

Looking Ahead

The 7,000 MW solar agreement with China offers Iran a rare opportunity — provided policymakers follow through with practical, consistent measures rather than slogans. Only then, experts say, can Iran move toward a greener economy and a sustainable, stable energy future.

Portable generators are displayed at a store in Tehran

Portable generators are displayed at a store in Tehran, Iran, June 2, 2025. Majid Asgaripour/WANA (West Asia News Agency)