Solar Business in an Oil-Rich Country? A Socio-technical Investigation of Solar PV Businesses in Iran

Abstract

Taking a socio-technical perspective, I focus on solar businesses (niche market actors) in Iran. As one of the key stakeholder groups whose business prosperity is tied to the development of solar PV, they play a crucial role in accelerating the energy transition. Given the incumbent fossil-based electricity sector in Iran and the least enabling policies, I am first interested to find (i) the main drivers and barriers of solar businesses; and (ii) the roles these solar businesses play in bringing solar PV deployment forward in Iran. I collected the data via 20 semi-structured interviews with solar businesses in Golestan, Guilan, Tehran, Khorasan Razavi, and Eastern Azerbaijan Provinces in Iran. Taking an inductive approach, I considered sustainability transition and social acceptance theories as sensitising concepts to investigate common and specific points of solar business acceptance in Iran. I find ecological awareness, belief in intergenerational justice, and willingness to innovate, as the main intrinsic drivers and socioeconomic opportunity and tackling the energy imbalance as extrinsic drivers; while the lack of a common vision with the energy governors, and the low knowledge of solar PV among the customers, escalating prices, and challenges to accessing good quality solar equipment are the most prior obstacles. Moreover, I understand educating people, driving the innovative deployment of solar PV, and facilitating the diffusion of it, as the major roles of solar businesses in Iran. I find that the sustainability transition literature overlooked the key role of solar businesses specially in fossil-based and developing economies. My findings suggest that the positive intrinsic mechanisms among the solar businesses, in combination with better-enabling policy frameworks and external factors, like lifting the sanctions and joining the global energy market, climate change mitigation commitments and standards, can help solar businesspeople to lead and accelerate solar PV development in Iran.