In a new development, as of last week, German companies can apply for Hermes export credit guarantees that faciliate doing business in Iran. With these guarantees, companies can protect themselves against the risks involved in foreign investment. Furthermore, the government in Tehran has announced new and more attractive feed-in tariffs. The new feed-in remuneration is valid until the end of the following Iranian year (21 March 2017).
New renumeration still attractive
In Iran, new remuneration has been introduced for systems with a capacity of 30 MW. Compared to the year 2015, the tariffs have dropped between 18 and 43 percent. Despite this decline, market observers see the remunerations as attractive, as long as favorable financing instruments are found.
High demand for made in Germany
“Iranian companies are extremely interested in working with German companies. Made in Germany is in high demand, and people in Iran understand that high quality quickly pays off,” explains Jörg Mayer, Managing Director of BSW-Solar, who was responsible for the study “Enabling PV im Iran.”
Domestic business partner necessary
With the end of sanctions, the country has now also reconnected with the international banking system. As a result, the financing of projects and the transfer of funds has become much easier. Nevertheless, companies interested in becoming active in Iran must work together with a domestic business partner.
Loan from foreign banks recommend
In addition, financing must be organized directly by the project developer. Because of the extremely high interest rates in Iran, it is highly recommendable to take out a loan with a German or European bank.
Companies interested in engaging in the solar business in Iran should attend the first Intersolar Summit in Tehran on 15 November 2016. Members of the German Solar Association can download the study “Enabling PV im Iran”. (HCN)
