Afghanistan Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Afghanistan

  1. climate.top. Kabul, Kabul, Afghanistan – Sunlight, Sunrise & Sunset Times. https://www.climate.top/afghanistan/kabul/sunlight/
  2. climatestotravel.com. Climate – Herat (Afghanistan). https://www.climatestotravel.com/climate/afghanistan/herat
  3. profilesolar.com. Solar Irradiance & PV Power Potential in Kabul, Afghanistan. https://profilesolar.com/locations/Afghanistan/Kabul/
  4. IRENA. (2024, July 31). Energy Profile Afghanistan. https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Asia/Afghanistan_Asia_RE_SP.pdf
  5. GlobalPetrolPrices.com. (2023, December). Afghanistan electricity prices, July 2023. https://www.globalpetrolprices.com/Afghanistan/electricity_prices/
  6. Farkhod Aminjonov. Afghanistan’s energy security: Tracing Central Asian countries’ contribution. Friedrich-Ebert-Stiftung. https://library.fes.de/pdf-files/bueros/kabul/12790.pdf
  7. Asian Development Bank. (2017). Afghanistan: Energy Supply Development Program. https://www.adb.org/sites/default/files/linked-documents/47282-001-ssa.pdf
  8. UNDP. (2024, January 26). Harnessing sun power for Afghanistan’s development. UNDP. https://www.undp.org/afghanistan/stories/harnessing-sun-power-afghanistans-development
  9. IRENA. (2024, July). Renewable Capacity Statistics 2024. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf
  10. Hamayun Khan (2024, March 14). Catalyzing Renewable Energy: Path to Afghanistan’s Economic Revival? The Diplomat. https://thediplomat.com/2024/03/catalyzing-renewable-energy-path-to-afghanistans-economic-revival/
  11. USAID. (2018, December). Utility-Scale Solar Energy Program in Afghanistan: Vision and Challenges. https://energypedia.info/images/5/5e/Afghanistan_Solar_Vision_Dec_2018_Final.pdf
  12. Ahmad Tamim Mehrad (2021). Assessment of solar energy potential and development in Afghanistan. https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/15/e3sconf_icren2021_00012.pdf
  13. World Bank Group. (2018, June 26). Afghanistan – Renewable Energy Development: Issues and Options. World Bank Documents & Reports. https://documents1.worldbank.org/curated/en/352991530527393098/text/Afghanistan-Renewable-Energy-Development-Issues-and-Options.txt
  14. Central Intelligence Agency. (2024, August 29). Afghanistan – The World Factbook. Central Intelligence Agency. https://www.cia.gov/the-world-factbook/countries/afghanistan/ 
  15. Afghanistan Analysts Network. (2015, February 3). Power to the people: How to extend Afghans’ access to electricity? https://www.afghanistan-analysts.org/en/reports/economy-development-environment/power-to-the-people-how-to-extend-afghans-access-to-electricity/
  16. Ali M. Latifi. (2023, January 17). In Afghanistan’s battered healthcare system, power cuts can prove fatal. The New Humanitarian. https://www.thenewhumanitarian.org/news-feature/2023/01/17/Afghanistan-power-cuts-hospitals-electricity-health
  17. Abubakar Siddique. (2023, January 13). Azadi Briefing: Afghanistan Plunged Into Darkness Amid Massive Power Outages. RadioFreeEurope/RadioLiberty. https://www.rferl.org/a/azadi-briefing-afghanistan-power-outages-ngos/32242485.html
  18. Faridullah Sharafmal. (2016, May 16). SAARC Energy Centre. Country Presentation – Afghanistan. SAARC Energy Centre. https://www.saarcenergy.org/wp-content/uploads/2018/05/Afghanistan-delegate.pdf
  19. database.earth Solar Power. Afghanistan. https://database.earth/energy/power-plants/solar-power/afghanistan
  20. TOLONews. (2024, June 25). Boosting Energy: Wind and Solar Projects Progress in Four Provinces. TOLONews. https://tolonews.com/afghanistan-189441
  21. UNDP. (2020, August 20). Innovative Solar Mini-Grids Project Set to Bring Relief and Hope to Afghanistan Amid COVID-19 Crisis. UNDP. https://www.undp.org/afghanistan/news/innovative-solar-mini-grids-project-set-bring-relief-and-hope-afghanistan-amid-covid-19-crisis
  22. Infratec. Bamyan Renewable Energy Project, Afghanistan. https://www.infratec.co.nz/projects/bamyan-renewable-energy-project-afghanistan
  23. pv magazine International. (2019, February 20). Afghanistan’s 20 million off-grid population target of solar+storage program. pv magazine International. https://www.pv-tech.org/afghanistans-20-million-off-grid-population-target-of-solar-storage-program/
  24. SAUREnergy.com. (2017, November 17). AADB Grants 44.76 Million Dollars Loan to Develop Solar Power Plant in Afghanistan https://www.saurenergy.com/solar-energy-news/afghanistan-soon-first-solar-power-plant
  25. pv magazine International. (2018, December 14). Afghanistan announces EOI for 2 GW solar tender. pv magazine International. https://www.pv-magazine.com/2018/12/14/afghanistan-announces-eoi-for-2-gw-solar-tender/
  26. Boell.de. (2023, July 06). Energy Transition in Afghanistan Under the Taliban – Impossible? https://afpak.boell.org/en/2023/07/06/energy-transition-afghanistan-under-taliban-impossible
  27. Jobs.af. (2023, October 4). Solar Energy Engineer. https://jobs.af/jobs/solar-energy-engineer-4Yx8L6Xke
  28. Glassdoor. (2024, July 14). Afghanistan Project Manager Salary. https://www.glassdoor.com/Salaries/afghanistan-project-manager-salary-SRCH_IL.0,11_IN7_KO12,27.htm
  29. Glassdoor. How Much A Production Worker Make in Mazar-e-Sharif.  https://www.glassdoor.com/Salaries/maz%C4%81r-e-shar%C4%ABf-production-worker-salary-SRCH_IL.0,14_IM1191_KO15,32.htm
  30. StatisticsTimes.com. Afghanistan population (live). https://statisticstimes.com/demographics/country/afghanistan-population.php
  31. Maskanyab.af. Shops For Rent https://maskanyab.af/property-type/shop/
  32. InstantOffices.com. Office Space for Rent in Kabul: Find the Perfect Office | Instant. https://www.instantoffices.com/en/af/available-office-space/kabul/kabul-36297
  33. Trading Economics. Afghanistan Lending Rate. https://www.economy.com/afghanistan/lending-rate
  34. Wikipedia. Water supply and sanitation in Afghanistan – Wikipedia. https://en.wikipedia.org/wiki/Water_supply_in_Afghanistan
  35. UNECE. Afghanistan Energy Sector. https://unece.org/fileadmin/DAM/energy/se/pp/eneff/7th_IFESD_Baku_Oct.2016/ESCAP_Elec_CIS/1_W.Aria_AVG.pdf
  36. Reglobal. (2022, May 22). Afghanistan’s Power Sector Update: Outlook Remains Uncertain. https://reglobal.org/afghanistans-power-sector-update-outlook-remains-uncertain/
  37. Gul Ahmad Ludin. (2024). Power transmission in Afghanistan: Challenges, opportunities and proposals. AIMS Energy. https://www.aimspress.com/article/doi/10.3934/energy.2024040?viewType=HTML
  38. policy.asiapacificenergy.org (2017). AFGHANISTAN: Renewable Energy Roadmap for Afghanistan (RER2032). https://policy.asiapacificenergy.org/node/3453
  39. policy.asiapacificenergy.org (2015). AFGHANISTAN: Renewable Energy Policy. https://policy.asiapacificenergy.org/node/3057
  40. Aman Ghalib. Afghanistan – Aman Workshop PPP 10-03-2014. Renewable Energy in Afghanistan. World Bank. Afghanistan. https://collaboration.worldbank.org/content/usergenerated/asi/cloud/attachments/sites/collaboration-for-development/en/groups/energyaccess/documents/_jcr_content/content/primary/blog/afghanistan_-_amanw-rAoJ/Afghanistan%20-%20Aman%20Workshop%20PPP%2010-03-2014.pdf
  41. ASES. (2022, September 25. Solar Empowers Rural Afghanistan. https://ases.org/solarempowersruralafghanistan/
  42. pv magazine International. (2017, November 27). ADB finances 20 MW of solar in Afghanistan with $44.7 million. https://www.pv-magazine.com/2017/11/27/adb-finances-20-mw-of-solar-in-afghanistan-with-44-7-million/
  43. Power Technology. Naghlu Solar PV Park, Afghanistan – Power Technology. https://www.power-technology.com/data-insights/power-plant-profile-naghlu-solar-pv-park-afghanistan/
  44. GEM.wiki. Farah Solar Project. https://www.gem.wiki/Farah_Solar_Project
  45. Daryo. (2024, July 19). Afghanistan secures $25mn for solar power projects in Farah, Uruzgan, and Paktika. Daryo. https://daryo.uz/en/2024/07/19/afghanistan-secures-25mn-for-solar-power-projects-in-farah-uruzgan-and-paktika
  46. Ministry of Energy and Water. (2022, November 6). Ministry of Energy and Water offers following projects for tender. https://mew.gov.af/en/ministry-energy-and-water-offers-following-projects-tender
  47. The Media Line. (2023, September 20). New 10-Megawatt Solar Power Project Unveiled in Afghanistan. The Media Line. https://themedialine.org/headlines/new-10-megawatt-solar-power-project-unveiled-in-afghanistan/
  48. Alemarah. (2024, August 8). Implementation Of 3-Megawatt Solar Power Project Commences In Uruzgan. AlemarahEnglish. https://www.alemarahenglish.af/implementation-of-3-megawatt-solar-power-project-commences-in-uruzgan/
  49. TOLONews. (2023, December 19). MoEW Seeking to Increase Solar Power. TOLONews. https://tolonews.com/afghanistan-186553
  50. Etemad Sun Solar. About Us – Etemad Sun Solar. https://etemadsunsolar.com/
  51. Energy.SourceGuides.com. Afghanistan Solar Companies. http://energy.sourceguides.com/businesses/byP/solar/byGeo/byC/Afghanistan/Afghanistan.shtml
  52. Kabul Solar. کابل سولر | Kabul Solar – Your Energy. Our Passion. https://www.kabul-solar.com/
  53. Zularistan. Solar Energy Company Afghanistan | Solar Panel in Kabul | زولرستان. https://www.zularistan.com/
  54. ETC Power. ETC Power. http://www.etc-power.de/
  55. Awfi Bahram Company. Awfi Bahram Company | The Leading Marble Company in Afghanistan. https://www.awfibahram.com/
  56. Noorpashtoon. Noor Pashtoon | Solar Energy. https://noorpashtoon.com/
  57. Bakhtar Solar. Bakhtar Bastan Solar and Wind Energy. https://bakhtarsolar.com.af/
  58. Afghanistan Analyst Network. (2020, December 3). Eat and Don’t Die”: Daily-wage labour as a window into Afghan society. https://www.afghanistan-analysts.org/en/reports/economy-development-environment/eat-and-dont-die-daily-wage-labour-as-a-window-into-afghan-society/
  59. Rivermate. Afghanistan Salary and Compensation Insights. https://www.rivermate.com/guides/afghanistan/salary

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Afghanistan experiences abundant sunshine throughout the year. Kabul receives an average of approximately 3,085 hours of sunshine annually. 1 Herat exhibits a comparable sunshine pattern, with the highest sunshine hours during the summer months, from June to September. 2

Generally, across Afghanistan, the peak sunshine hours occur in June and July, averaging around 11.5 hours per day, with a notable decrease during the winter months. 1

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kWh per kWp installed

The energy yield from solar photovoltaic (PV) systems in Afghanistan varies depending on the season and location. In Kabul, the average daily energy output per installed kilowatt (kWp) is as follows: 3

  • Summer: 8.67 kWh
  • Autumn: 5.81 kWh
  • Winter: 4.09 kWh
  • Spring: 6.78 kWh

Annually, Afghanistan generates approximately 1,800 kWh per kWp for 40% of its land and 1,700 kWh per kWp for 30%. 4

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Average cost per kWh from utility company

The residential average cost of electricity from utility companies is approximately $0.053 per kWh. This price is inclusive of power generation, distribution, transmission costs, as well as applicable taxes and fees.5

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Reliability of electrical power supply grid

Afghanistan’s electrical power supply grid faces significant reliability challenges. While 70% of Kabul consumers have nearly uninterrupted electricity, up to 75% of the population remains disconnected from the grid. 6 Load shedding is common, and many areas depend on private generators.7

Afghanistan heavily relies on electricity imports, primarily from neighboring countries, making it vulnerable to external factors. This reliance, combined with an underdeveloped grid infrastructure, contributes to frequent blackouts, especially during dry periods or when neighboring countries experience technical difficulties.8

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Detailed Information

  • All figures have been converted into USD

    • Total solar panel production capacity (installed)

    Afghanistan has an installed solar capacity of approximately 33 MW.9

    Total solar panel production capacity (projected)

    Afghanistan has significant potential for solar energy production, estimated to exceed 220 GW.10 The government has ambitious plans to develop 2,000 MW of solar power by 2032 to boost the nation’s electricity supply.11

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    The cost of generating electricity in Afghanistan varies depending on the source used. Here’s a breakdown:

    Solar:12

    • Grid-connected systems: The levelized cost of electricity (LCOE) is estimated to be approximately $0.05/kWh and 864 $/kWp.
    • Off-grid systems: cost around $1,344/kWp installed.

    Diesel: ~$0.30-$0.50/kWh (depending on scale).7

    Hydropower: Less than $0.05-$0.10/kWh.13

    Imported Electricity: Import tariffs vary from $0.02/kWh (Turkmenistan) to $0.085/kWh (Uzbekistan).13

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    Afghanistan’s electricity generation mix relies on a variety of sources:

    • Hydropower: 74.8% 14
    • Fossil Fuels: 15.6% 14
    • Solar Power: 9.6% 14
    • Imported Electricity: Over 75% of total supply 8

    Average daily availability of electricity from the national grid (measured in hours)

    Power shortages are common, especially during peak evening hours (5 PM to 10 PM) when demand is high.15

    To meet its needs, the country relies heavily on imports from neighboring countries (80%). This makes them vulnerable to disruptions, particularly during winter when demand for heating increases.16

    Recent cold snaps have caused severe power cuts, with some areas receiving electricity for only one hour every two days.17

    Number of residential solar panel installations

    Over 100,000 solar home systems (SHSs) have been installed, providing a significant source of residential solar panels within the country. These SHSs play a crucial role in providing electricity to communities, particularly in rural areas, that are not connected to the national grid where grid access is limited or non-existent.18

    Total number of solar farms (installed and projected)

    Installed: Afghanistan currently has two operational solar farms, both located in Kandahar.19

    Projected: DABS, Afghanistan’s national power utility, has announced a strategic five-year plan that includes 6 wind and solar energy projects across four provinces.20

    Off-grid market demand for solar panels (current and projected)

    Current: The off-grid solar market in Afghanistan is substantial, driven by the lack of reliable grid access in rural areas. Currently, over 100,000 solar home systems (SHSs) are installed in off-grid communities.18 Innovative solar mini-grid projects are being developed to address energy poverty in rural areas, which will contribute to the overall demand for solar panels. A notable off-grid solar project, like the Bamyan Renewable Energy Project, has been implemented to provide electricity to remote areas.22

    Projected: The off-grid solar market is expected to continue growing, driven by pay-as-you-go (PAYG) systems. Initiatives like this target Afghanistan’s estimated 20 million off-grid population.23

    On-grid market demand for solar panels (current and projected)

    Current:The on-grid market demand for solar panels is growing, driven by energy shortages and government focus on renewable energy in Afghanistan. Projects like the Naghlu Solar Power Plant are being installed to boost the on-grid market and integrate renewable energy into the national grid.24

    Projected: The DABS has issued a tender for the installation of 400 megawatts (MW) of solar grid connected across five provinces, as part of a larger initiative to add 2 gigawatts (GW) of solar capacity to the national grid.25

    This ambitious project reflects the government’s commitment to expanding renewable energy sources, especially considering that roughly 75% of the population remains unconnected to the grid.26

    Average monthly income of workers in solar industry (labor cost)

    Salaries in Afghanistan’s solar industry can vary depending on the specific role and experience level.

    • Solar Energy Engineer: $1,600 – $1,700 per month (with 1-3 years of experience)27
    • Project Manager: Approximately $950 per month.28
    • Production Worker: $19 per hour in the Mazar-e-Sharif area, a significant city in northern Afghanistan.29

    Population of the country

    As of September 4, 2024, the population of Afghanistan is estimated to be approximately 42.8 million.30

    Average overhead costs of solar panel production (with a brief breakdown)

    While Afghanistan primarily relies on imported solar panels, understanding potential overhead costs for any future domestic production is essential. Key factors include:

    • Labor cost:

    Daily Wage Laborers: Daily wage laborers typically earn approximately $81.20 per month, assuming a standard 20-day work month and a daily rate of $4.06.58

    Minimum Wage for Temporary Workers: While there is no established minimum wage for permanent private sector workers in Afghanistan, the National Minimum Wage Act mandates a minimum monthly wage of $79 for temporary workers.59

    • Rental Cost: Shops in Kabul have rental costs starting at $100/month, 31small offices start at $115/month, and larger offices can reach up to $11,500/month.32
    • Mortgage Rent: The lending rate in Afghanistan was around 15% per annum as of the latest available data.33
    • Utility Costs:
      Electricity: The residential electricity price is approximately $0.053 per kWh.5 Industrial rates may differ and are generally higher.
      Water: The average urban water tariff is around 34 US cents per cubic meter for metered connections.34

    A summary of the energy infrastructure

    • Electricity Access Rate: The electricity access rate in Afghanistan is estimated to be around 30%, with significant disparities between urban and rural areas.21
    • Main Operator: Da Afghanistan Breshna Sherkat (DABS) is the primary entity responsible for electricity generation, transmission, and distribution throughout Afghanistan.35
    • Transmission Networks: Afghanistan’s power system is divided into four main networks: the North East Power System (NEPS), the South East Power System (SEPS), the Herat Zone System, and the Turkmenistan System. These networks facilitate both internal electricity transmission and cross-border interconnections with neighboring countries, including Uzbekistan, Tajikistan, Iran, and Turkmenistan.35
    • Grid and Voltage: The national grid infrastructure in Afghanistan is considered underdeveloped. The transmission lines operate at various voltage levels, including 220 kV and 110 kV.36
    • Importation of Electricity: Over 75% of Afghanistan’s electricity is imported from neighboring countries.8
    • Challenges: Afghanistan’s energy sector faces several key challenges, including limited access to electricity for a substantial portion of the population, an aging and damaged infrastructure that requires significant investment for modernization, and a high level of dependence on imported electricity, which can lead to vulnerability in terms of energy security.37

    Some of the government regulations surrounding solar panel production

    • Renewable Energy Roadmap: Afghanistan has a plan called the Renewable Energy Roadmap (RER2032). This plan aims to increase the use of renewable energy, including solar power, significantly by 2032. It sets clear goals for solar energy and outlines steps to help the solar market grow, such as making it easier to get permits and providing necessary support for infrastructure.38
    • Renewable Energy Policy: The government has established a Renewable Energy Policy (RENP) with the objective of promoting the development of renewable energy sources, including solar power.39
    • Laws and Policies: The Ministry of Energy and Water is actively developing rules and guidelines to support renewable energy. They are working on specific rules for solar energy projects and making it easier for businesses to get involved by simplifying regulations.40

    Government initiatives in solar panel production (includes investments and subsidies)

    • ACEP: ACEP was a $22 million project funded by USAID to install solar panels in villages across Afghanistan. This helped bring electricity to rural areas, powering things like clinics and businesses.41
    • Public-Private Partnerships (PPPs): The policy encourages the establishment of PPPs for the development of solar projects, providing incentives such as land acquisition and security during project implementation39
    • Capacity Building: Programs are teaching people in Afghanistan how to work with solar power, so they can help build and maintain solar projects.41
    • Capital Subsidies and Grants: The government provides fiscal incentives such as capital subsidies and grants to encourage private sector investment in solar projects.39
    • Net-metering allows people with solar panels to sell any extra electricity they make back to the power company, which can help them save money on their electric bill.39
    • Tax Reduction: The government offers tax breaks on solar equipment and income tax exemptions for solar project developers for the first five years of their projects to make solar power more affordable and encourage its growth in Afghanistan.39

    Notable solar projects in the country (installed and projected)

    Installed:

    • Naghlu Solar PV Project (20 MW): This project is being developed with the financial support of the Asian Development Bank (ADB). The project has secured a grant of approximately $44.7 million from ADB42and is currently in the construction phase. Commercial operation is anticipated to begin in 2025.43
    • Farah Solar Project, a 10-megawatt (MW) solar photovoltaic (PV) farm located in Farah province, Afghanistan,44  is part of a broader initiative to enhance renewable energy capacity in Afghanistan.45
    • Paktika Solar Project (10 MW, Paktika): The Paktika Solar Power Plant is another significant solar initiative aimed at enhancing energy access in the region.45  The project has a planned capacity of 10 MW, with the first phase targeting 2.5 MW.46
    • Surobi Solar Power Project (10 MW, Surobi): Funded by the private sector, this project aims to enhance energy self-sufficiency in the region.47
    • Uruzgan Solar Project (3 MW): The Uruzgan Solar PV Project is being developed in Trinkot, the capital of Uruzgan province. It aims to provide sustainable energy solutions to local communities.48

    Projected:

    • Western Herat-I Solar Plant (25 MW, Herat): This project is part of a series of renewable energy initiatives aimed at increasing solar capacity in the western region of Afghanistan.36
    • Northern Balkh Solar Plant (40 MW, Balkh): This project is designed to enhance energy access in northern Afghanistan, contributing significantly to the local grid.36
    • Naghlu Dam Floating Solar Plant (25 MW, Kabul): This innovative project will utilize floating solar technology to generate electricity, maximizing space and efficiency.36
    • 100 MW Herat: The Ministry of Energy and Water (MoEW) has plans for further expansion, including a total of 100 MW in Herat province.49
    • 50 MW Nimroz: The MoEW also has plans to install 50 MW in Nimroz province.49

    Some of the notable solar companies (plus brief details on what they do)

    • Etemad Sun Solar (founded in 2018): Afghanistan’s only solar panel manufacturer, based in Herat. Provides panels, street lights, water pumps, installation, and maintenance services.50
    • Afghan Solar Ltd: Offers a wide range of solar products, including panels, batteries, inverters, and charge controllers.51
    • Kabul Solar: Distributor of solar panels, inverters, and storage systems. Focuses on expanding solar energy access.52
    • Zularistan (founded in 2017): Provides solar products, including panels, inverters, and charge controllers. Active in wholesale distribution and large-scale projects. Notable project: Kandahar Solar Park (15 MW)53
    • ETC Power (founded in 2007): Distributes solar products and offers complete solar kits and installation services.54
    • Awfi Bahram Company: Mining company investing in solar power projects.55
    • Noorpashtoon: Wholesaler of solar panels and inverters, with 19 years of experience56
    • Bakhtar Bastan Solar and Wind: Established in 2007 and one of the top leading solar services providers in Afghanistan. Focuses on solar installations.57

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