Iranian Renewable Energy Organization (SUNA) was establish in 1999. The aim for establishing the organization was to improve energy efficiency and to utilize renewable energy. Although the organization has been established about 17 years ago, it has been unsuccessful so far. Low cost and availability of fossil fuels, lack of technology, and no specific plan to engage renewable energy in the country are all responsible for SUNA’s failure. According to Iranian governments’ plan to utilize renewable energy in the country, which is a subsidiary of the Ministry of Energy, has decided to take some actions in order to cope with the rapid increment of energy demand and to help the reduction of water consumption in the country. Since 2000, Iran has entered a serious period of drought. Increasing of water consumption due to cultivation of some fruit and grains, which need a lot of water to grow, has worsen the situation in the country. The newest estimation indicates that water consumption in agriculture sector reaches 94%.
A few years ago, since Iranian governments have been forced to allow private sector to establish power plants according to Article 44 of constitution, and also due to increasing the cost construction, operation and maintenance of thermal power plants, SUNA has introduced some great incentives to produce electricity by renewable sources. SUNA increased the feed-in-tariffs (FiT)s remarkably, especially in summer 2015. The introduced feed-in-tariffs were sufficiently high and made it possible for private sector to invest in renewable energy sector in Iran.