As of 2023, Egypt’s solar energy capacity reached 1,856 megawatts, marking a significant milestone in the country’s transition to renewable energy sources. Notably, solar energy accounted for a substantial 68.5% of Egypt’s total renewable energy capacity in 2023, solidifying its position as a leading source of clean energy in the country’s energy mix. ⁵

Egypt has set ambitious targets for solar energy production, aiming to reach a total solar panel production capacity of 7.71 gigawatts (GW) by 2030. This goal aligns with the country’s broader objective of having renewable energy sources account for 50% of its power generation by 2030. ⁶

Solar ⁶

• In 2023, Egypt achieved a significant milestone in renewable energy affordability, with the cost of solar-produced electricity ranging from 2-3 cents per kilowatt-hour (kWh), a substantial decrease from the previous 7-8 cents/kWh. This makes solar energy an increasingly attractive option.
• Additionally, wind energy costs 2.4 cents per kWh, representing the lowest price per kWh of renewable energy globally and making Egypt an appealing destination for investment in the field.
• In contrast, diesel-fired generators have a levelized cost of electricity (LCOE) between 7.2 and 9.4 cents/kWh. Meanwhile, hybrid PV-battery systems have an LCOE ranging from 5.24 to 19.72 cents/kWh, offering a promising solution for energy storage and grid stability.

Natural Gas ⁷⁸

• In 2022, 86.35% of Egypt’s capacity was installed in natural gas. In 2022, the average price of electricity in Egypt was $56.47 per MWh.
• In 2023, the Egyptian Electric Cooperative Association (EECA) charged $0.10 per kW for Residential Demand. As of January 2024, the following are the per kW costs for electricity generation in Egypt:

Consumption Range	Price (USD/kWh)
0–50 kWh	0.01218
51–100 kWh	0.01428
101–200 kWh	0.01743
201–350 kWh	0.02625
351–650 kWh	0.02940

According to Ember Climate, in 2023, 88% of Egypt’s electricity came from fossil fuels, with natural gas accounting for 57%, petroleum and other liquids accounting for 36%, coal accounting for 1%, and wind and solar accounting for 5%. Egypt’s largest clean electricity source is hydro, which accounts for 7% of the country’s electricity. ⁹

Exact number of hours is not mentioned in any data. But electricity access rates in Egypt are relatively ideal. As, according to the Egyptian State Information Service, Egypt’s national electricity grid has a daily reserve of more than 16,000 megawatts. ¹⁰

Current Residential Solar Panel Installations ¹¹¹²

• As of recent data, the adoption of residential solar panels in Egypt is relatively modest compared to the rapid expansion of utility-scale projects.
• Government initiatives, such as the Feed-in Tariff (FiT) program and various subsidies, have been introduced to encourage the adoption of solar energy at the residential level.
• As of 2021, Egypt-PV, a government-run program, had installed 125 small-scale solar systems in 15 governorates with a combined capacity of 11 megawatts (MW).
• These systems produce 17,000 megawatt-hours (MWh) of electricity annually, which benefits around 8,800 households and businesses.
• However, rooftop solar adoption in Egypt remains low, with only 749 rooftop units installed since the government introduced a net metering scheme.

As of 2020, Egypt had 123 solar PV projects with capacities between 5 and 500 kW, and as of 2022, the country’s solar energy capacity is 1,724 megawatts. ¹¹

The off-grid solar panel market in Egypt is thriving, driven by supportive government policies, decreasing solar module prices, and the country’s abundant solar potential. Egypt’s geography, with vast desert areas, provides significant solar photovoltaic potential, exceeding 2000 kWh/KWp/year. Several projects are underway to harness this potential: ¹³¹⁴¹⁵

1. Juwi’s solar battery hybrid power plant for Sukari Gold Mines, claimed to be the world’s largest solar hybrid project at an off-grid mine, featuring a 36MW solar array and 7.5MW battery energy storage system
2. Siwa Oasis Solar PV Park, which has a dedicated off-grid section providing electricity to nearby villages and communities, generating 17,551MWh electricity and powering 6,000 households while offsetting 14,000t of CO2 emissions annually.
3. The United Nations Development Programme (UNDP) implemented projects to provide off-grid solar power systems to remote and marginalized communities in Egypt, including in Qena, Sohag, and Aswan governorates.
4. KarmBakeries installed off-grid solar power systems to operate bakeries in several villages, providing electricity and employment opportunities.
5. The UNDP’s „Hayat“ project brought off-grid solar power systems to remote and marginalized communities in Qena, Sohag, and Aswan governorates.

Projections ¹⁶

• The Egypt Solar Photovoltaic (PV) Market is poised for significant growth, projected to expand from 2,300 MW in 2023 to 3,546.96 MW by 2028, at a Compound Annual Growth Rate (CAGR) of 9.05% during this period.
• A key contributor to this growth is the Kom Ombo Solar PV Park, a 560 MW utility-scale solar plant expected to be completed in 2025. This project aligns with the government’s goal of achieving 42% renewable electricity by 2035 and will generate 1,550,000 MWh of electricity, sufficient to power 500,000 households while offsetting 19,559,075 tons of carbon dioxide emissions annually. The project features 1,000,000 solar modules, each with a 550W nameplate capacity, and will utilize 3,000 inverters.
• In addition to large-scale projects like Kom Ombo, initiatives like the KarmSolar Village Electrification Project are bringing off-grid solar power to remote communities. This project aims to provide off-grid solar power systems to over 30 villages across several governorates, including Minya, Sohag, and Assiut, promoting energy access and sustainable development in rural Egypt.

¹⁷¹¹

• On-Grid Dominance: Egypt has connected substantial solar capacity to the grid, including large-scale ground-mounted projects like the 1.4 GW Benban Solar Park. Egypt has made significant strides in developing utility-scale solar projects connected to the national grid, it is one of the largest solar installations in the world.
• The government’s Feed-in Tariff (FiT) program has been instrumental in attracting investments and promoting the development of grid-connected solar power plants.
• Government Initiatives: The New and Renewable Energy Authority (NREA) collaborates with the National Project Grid-Connected Small-Scale Photovoltaic Systems (Egypt-PV) to promote small-scale solar projects (<500 kW) and support the overall solar PV market.
• Future Prospects: Over the medium term, the declining price of solar PV modules, supportive policies, and increasing energy demand are expected to drive further growth.
• 10 GW project is part of Egypt’s „Green Corridor Initiative,“ which aims to increase the use of renewable energy and reduce dependence on fossil fuels. It is expected to produce about 29,784 GWh of electricity per year, helping to reduce around 14 million tons of carbon dioxide emissions.

• The average salary for a renewable energy engineer in Egypt ranges from 315 to 630 USD per month, depending on experience and qualifications. ¹⁸
• The average solar energy system installer gross salary in Egypt is 3,441.23 USD or an equivalent hourly rate of 1.68 USD. In addition, they earn an average bonus of 61.26 USD.
• An entry-level solar energy system installer (1-3 years of experience) earns an average salary of 2,541.84 USD.
• On the other end, a senior-level solar energy system installer (8+ years of experience) earns an average salary of 4,277.83 USD. ¹⁹

As of May 18, 2024, Egypt’s population is 114,263,940, according to Worldometer. ²⁰

Solar panel and installation costs

• The specific power plant costs of PV in Egypt are between $1300 and (2000US\)/kWp. ²¹
• Ground mounted plants have a lower specific investment and therefore lower LCOE.
• As of May 2024, the average cost of solar panels in Egypt is $2.54 per watt. This makes a typical 6000 watt (6 kW) solar system $10,653 after claiming the 30% federal solar tax credit. ²²
• Solar plant operators will pay 0.0054 to 0.0069 USD per kWh in “integration fees,” according to a decision by the Egyptian Electric Utility & Consumer Protection Regulatory Agency.

Utilities

Land for renewable projects is provided at discounted prices, significantly reducing initial capital expenditure and making projects more feasible.

Taxation ²³

• The Egyptian government has introduced new taxes on solar plants with a capacity exceeding 500 KW, regardless of whether the energy is used for self-consumption or fed into the grid through net metering.
• This move comes at a challenging time for the sector, as margins are being squeezed by rising commodity prices and shipping costs. However, to incentivize development in underdeveloped areas, projects in Zone A will receive a 50% discount, while those in Zone B will receive a 30% discount on net taxable profits.
• Additionally, the production, transmission, sale, and distribution of electricity are exempt from Value-Added Tax (VAT). Furthermore, machines and equipment for power plants are eligible for a reduced VAT rate of 5%, compared to the standard 14%, whether imported or locally procured. These measures aim to strike a balance between revenue generation and supporting the growth of the solar energy sector in Egypt

Operational and Maintenance cost

• According to NREL, solar energy systems have annual operation and maintenance costs of less than $15 per kilowatt or $15,000 per megawatt of installed capacity.
• For smaller solar PV systems, maintenance costs are typically about 2% of the initial system cost, and for larger systems, they are about 1% of the initial cost.

Egypt’s strategic location makes it a critical player in international energy markets, thanks to its extensive energy infrastructure. The Suez Canal, a 193 km artificial waterway connecting the Red Sea to the Mediterranean Sea, and the Suez-Mediterranean Pipeline (SUMED), a 42-inch pipeline transporting crude oil from the Gulf of Suez to the Mediterranean Sea, are two vital components of this infrastructure. These transportation routes enable the efficient passage of oil and natural gas, making Egypt a key transit point for global energy trade. The Egyptian government generates substantial revenue from tolls and fees collected from vessels passing through the Suez Canal and oil transported through the SUMED pipeline, solidifying the country’s importance in the global energy landscape. ²⁴

Electricity Generation ²⁵

• Egypt’s energy strategy aims to increase the supply of electricity generated from renewable sources to 20% by 2022 and 42% by 2035.
• The country’s largest clean electricity source is hydro (7%), while wind and solar are starting to grow, comprising 5% of the country’s electricity in 2023.
• However, this figure is still below both the global average (13%) and the regional average for Africa (6%). Fossil gas generation constitutes 84% of Egypt’s electricity mix.

Transmission & Distribution ²⁶

• Egypt’s energy transmission and distribution is primarily managed by the state-owned utility, Egyptian Electricity Holding Company (EEHC), which holds a monopoly on the market. EEHC is composed of six generation utilities, one transmission utility, and nine distribution utilities, ensuring a comprehensive coverage of the country’s energy needs.
• The Egyptian Electricity Unified Network (EEUN) is divided into six geographical regions: Cairo, Canal, Delta, Alexandria/West Delta, Middle Egypt, and Upper Egypt, facilitating efficient energy distribution across the nation.
• The transmission system is designed to operate at multiple voltage levels, including 500 kV, 400 kV, 220 kV, 132 kV, and 66 kV, enabling reliable and efficient energy transmission to meet Egypt’s growing demand.

Renewable Energy ⁶

• Egypt’s renewable energy infrastructure is diverse, comprising wind, solar, hydropower, and photovoltaic (PV) power.
• While progress has been made, with wind and solar increasing their share of the electricity mix from 1% in 2015 to 5% in 2023, this still lags behind the global average of 13% and the regional average for Africa of 6%.
• Hydropower remains Egypt’s largest source of clean electricity, accounting for 7% of the country’s electricity generation.
• However, fossil gas generation continues to dominate, making up 84% of Egypt’s electricity and more than doubling in the last two decades due to rising demand.

Energy Access 

• Egypt’s population has had access to reliable energy sources since around 2014/2015, and only 2% of the whole population has no access to clean cooking. ²⁷
• In 2021, Egypt reported 100% access to electricity for its population. ²⁸

Energy exports

In 2022, Egypt’s top exports were petroleum gas, nitrogenous fertilizers, refined petroleum, crude petroleum, and gold.

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• In all cases, the maximum allowed generation capacity of the PV plant is 30MW. The total generation capacity of the solar PV projects under the net-metering and self-consumption system all around Egypt will not exceed 1000 MW including the existing and the future projects.
• Electricity Law No. 87 of 2015 governs the development and regulation of renewable energy, empowering the Egyptian Electricity Regulatory Agency (ERA).
• Investment Law No. 72 of 2017 offers financial incentives such as tax holidays and reduced tax rates on profits from renewable energy projects, along with exemptions from customs duties on imported equipment.
• Projects with generation capacity of less than 500 kW can be exempted from the licensing requirements upon submitting a request to EgyptERA. However, a plant that is developed and owned by a qualified developer who enter into power purchase agreement with the consumer must be licensed.
• In order to establish an isolated self-consumption solar PV plant, the consumer, or the company which will develop the plant for the consumer (developer) shall be required to obtain the customary license for electricity generation.
• In order to integrate the generated electricity with the electric power system, the consumer/develop shall obtain the prior approval of the network operator, being the Egyptian Electricity Transmission Company (EETC) or the licensed distribution company.
• Projects with generation capacity exceeding 500 kW must obtain a prior license from EgyptERA before applying for the approval of the network operator.
• In 2020, EgyptERA issued new rules for net metering that limit the total capacity of solar plants across the country to 300 MW, excluding 75 MW that have already been licensed. The remaining 225 MW are divided into 125 MW for capacity less than or equal to 500 KW, and 100 MW for capacity more than 500 KW and up to 20 MW.
• Self consumption projects must have battery capacities that do not exceed 20% of the plant’s generation capacity. The entire electricity system must be isolated through circuit breakers equipped with voltage sensors in case of network disconnection. Smoke detectors must also be installed at the battery’s location, and batteries with capacities exceeding 100 kW/hour must have an over current protection system.
• Solar and wind projects must consider cultural and mineral resources, and obtain avian and military clearances before being set up.
• Public land offered to investors for the development of renewable energy projects is typically fully permitted.

The incentives for investment in renewable energy in Egypt include: ³⁰

Feed-in Tariff (FiT):

• Provides guaranteed prices for renewable energy producers, ensuring a predictable income over 25 years for solar projects and 20 years for wind projects.
• The FiT program has seen two rounds with specific tariffs, decreasing from USD 14.34 cents/kWh in Round 1 to USD 8.40 cents/kWh in Round 2 for solar projects.

Grid Access and Priority Dispatch:

• Renewable energy producers are ensured access to the national grid, facilitating the distribution of electricity generated.
• Renewable energy sources are given dispatch priority, meaning their electricity is prioritized in the grid over non-renewable sources.

Long-term Power Purchase Agreements (PPAs):

Allows private developers to secure long-term contracts for selling electricity, providing financial stability and making projects more bankable.

Land Allocation:

Land for renewable projects is provided at discounted prices, significantly reducing initial capital expenditure and making projects more feasible.

Investment Incentives and Tax Reductions

• A flat customs duty rate of 2% on all machinery and equipment needed for establishing renewable projects.
• Exemption from registration fees for land, and from stamp duty tax and notary public fees for five years from the company’s registration date .
• Projects in Zone A (underdeveloped areas) receive a 50% discount, and those in Zone B receive a 30% discount on the net taxable profits.

VAT Exemptions and Reductions:

• Production, transmission, sale, or distribution of electricity is exempt from VAT.
• Machines and equipment for power plants are subject to a reduced VAT rate of 5% instead of the standard 14%, whether imported or locally procured.

¹⁴

Zafarana Solar Park

• Location: Zafarana, on the Red Sea coast.
• Capacity: 50 MW (initial phases).
• Developer: Egyptian Electricity Transmission Company (EETC) and other partners.
• Technology: Photovoltaic panels.
• Impact: Part of a larger strategy to increase solar power capacity and reduce reliance on fossil fuels .

Kom Ombo Aswan Solar Project

• Location: Near Aswan, Egypt.
• Capacity: 26 MW.
• Developer: SkyPower Global.
• Technology: Advanced photovoltaic technology.
• Impact: Enhances local grid stability and supports local communities by providing clean energy .

Nubian Suns Feed-in Tariff Program:

• Location: Various locations across Egypt.
• Capacity: Multiple projects totaling around 1.4 GW.
• Developers: Includes companies like FAS Energy and others under the FiT scheme.
• Technology: Various photovoltaic technologies.
• Impact: Significant contribution to Egypt’s renewable energy mix under the Feed-in Tariff program.

Solar projects (Projected) ¹⁴

Kom Ombo Solar Power Plant

Located in Aswan, this project is set to add 200 MW to Egypt’s solar capacity. It is being developed under the build-own-operate (BOO) system and is expected to significantly contribute to the country’s renewable energy goals​.

Suez Gulf Wind Projects

While primarily focused on wind energy, the Suez Gulf area is seeing substantial investment in renewable energy, including solar. Projects here include a 250 MW wind farm by Lekila and a future 500 MW wind project by Al-Nowais Investment Company.

New Solar Projects in the Pipeline

Egypt plans to further increase its renewable energy capacity with several solar projects totaling 550 MW. These are part of a broader strategy to raise the renewable energy share in the national energy mix to 42% by 2035​.

These projects are part of Egypt’s broader strategy to attract $2.6 billion in renewable energy investments during the 2023-2024 fiscal year, aiming to boost the sector’s share in the country’s energy mix to nearly 12%​ .

Table 01: Ranking of solar companies in Egypt ³¹

Ranking	Company
1	Cairo Solar
2	ACWA Power
3	Masdar
4	Canadian Solar
5	Jinko Solar

Cairo Solar

Established date: 2014

Global headquarters: Cairo, Egypt

Website: www.cairo-solar.com

Overview: Cairo Solar is an EPC (Engineering, Procurement, and Construction) and financing company focused on solar energy projects. They work with various clients including factories, warehouses, schools, administrative buildings, water well pumps, and residential systems.

Projects: Since its founding, Cairo Solar has completed 43 projects totaling around 1.5 MWp. They co-managed a $100 million, 50 MWp solar farm in Benban, Aswan, with ECG and Globeleq.

ACWA Power

Established date: 2008

Global headquarters: Saudi Arabia

Website: acwapower.com 

Overview: ACWA Power is a Saudi Arabian company specializing in power generation and desalination. It operates across 12 countries, including the Middle East, Africa, Central Asia, and Southeast Asia.

Energy Portfolio: The company has an investment value of $82.8 billion and a generating capacity of 53.7 GW, encompassing high-efficiency combined cycle power plants, solar PV, concentrated solar power, wind, desalination plants, and green hydrogen projects.

Masdar

Established date: 2006

Global headquarters: Abu Dhabi, UAE

Website: masdar.ae

Overview: Masdar, established by the UAE government, focuses on renewable energy and green hydrogen, positioning the UAE as a leader in sustainability. It operates in more than 40 countries.

Projects: Masdar has invested in projects worth over $30 billion, advancing solar, wind, energy storage, waste-to-energy, and geothermal energy technologies.

Canadian Solar

Established date: 2001

Global headquarters: Canada

Website: www.canadiansolar.com

Overview: Canadian Solar is a global leader in solar energy and energy storage solutions, operating in over 30 countries with more than 20,000 employees.

Production Capacities: By December 2024, CSI Solar plans to reach production capaciies of 50.4 GW for ingots, 50.0 GW for wafers, 55.7 GW for cells, and 61.0 GW for modules. The company also offers utility-scale LFP battery systems and residential battery storage services.

JinkoSolar

Established date: December 13, 2006

Global headquarters: Zhejiang, China

Website: www.jinkosolar.com

Overview: JinkoSolar is a prominent solar technology company with a vertically integrated production system. It serves over 3,000 customers in more than 190 countries and regions.

Production Capacities: By the end of 2023, JinkoSolar’s production capacity for monocrystalline silicon wafers, cells, and modules reached 85 GW, 90 GW, and 110 GW, respectively. N-type production capacity accounts for over 75%.

Table 02: Specs of top 5 companies

Company	Established	Headquarters	Key Focus Areas	Notable Projects	Production Capacities
Cairo Solar	2014	Cairo, Egypt	EPC and financing for solar projects	43 projects totaling ~1.5 MWp, 50 MWp solar farm in Benban	–
ACWA Power	2008	Saudi Arabia	Power generation, desalination, renewables	Projects in 12 countries, 53.7 GW capacity	–
Masdar	2006	Abu Dhabi, UAE	Renewable energy, green hydrogen	Projects in 40+ countries, investments over $30 billion	–
Canadian Solar	2001	Canada	Solar energy, energy storage	Operates in 30+ countries, significant in Egypt	Ingots: 50.4 GW, Wafers: 50.0 GW, Cells: 55.7 GW, Modules: 61.0 GW
JinkoSolar	2006	Zhejiang, China	Integrated solar PV manufacturing	Over 200 GW module shipments	Wafers: 85 GW, Cells: 90 GW, Modules: 110 GW