A Business Model for Developing Distributed Photovoltaic Systems in Iran

Abstract

The necessity of increasing the utilization of renewable energies and lowering the dependence on fossil energies for power generation has been increasingly regarded worldwide. Thanks to its desirable solar radiation potential, Iran can lower its level of dependence on fossil fuels for power generation significantly by developing distributed solar photovoltaic (DSPV) systems. The present research began with identifying, through a literature review, relevant business models in terms of ownership and control and the barriers encountered by the PV industry. Continuing with the research, semi-structured interviews were performed with elites in the power industry to explore different barriers hindering the development of DSPV in Iran and weigh them appropriately. Next, according to the elites’ opinions, three business models differing in ownership and control were compared and scored in terms of their ability to address the identified barriers. According to the results, the business model with customer/third party ownership and utility control was identified as the most appropriate business model in Iran. As a final discussion, the business canvas and the roles and associations of all players of this industry in relation to the development of DSPV in Iran were explained.