The costs of establishing solar energy plants in Egypt increased by 100% within a year, especially after the rise in the exchange rate of the dollar against the Egyptian pound. Among the reasons is the liberalization of the exchange rate of the pound, which caused the customs dollar to rise, in addition to the increase in interest rates, which led to confusion in the solar energy market. In Egypt and the companies operating in it.

Wael El Nashar, head of the Onera Solar Energy Company, stated that the recovery period for the cost of the solar power station now ranges between 7 and 8 years, especially after the liberalization of the exchange rate of the Egyptian pound against the dollar, after it had ranged between 5 and 6 years in the past.

As for the cost of establishing a solar energy station, it has witnessed a state of increase, as it increased by 100% within 12 months, and the attractiveness of projects has become less, due to the rise in costs and the increase in their payback period. The head of Sunway Egypt, “Ahmed Al-Ghandour,” confirmed that the cost of establishing solar energy stations From March 2023 until March 2024, it witnessed a state of increase, due to the change in the exchange rate and the resulting changes in all cost elements.

But the positive thing about liberalizing the exchange rate is the availability of foreign currency in Egyptian banks and the absence of two prices for the dollar in Egypt, in addition to meeting the private sector’s demands for dollars in all banks, and the rise in the customs dollar is reflected in the implementation of projects given that most of the components of solar energy plants are imported from abroad.

Persuading citizens and companies to install solar energy plants is considered difficult, especially since government electricity tariffs are still low, and the import period for the cost paid for establishing the project has become longer, and the number of companies implementing and establishing solar energy stations in population sectors has reached more than 220 companies.

Companies contract with customers to implement projects and obtain a license to establish the station from the Egyptian Electricity Utility and Consumer Protection Regulatory Authority. The head of Cairo Solar for solar energy, Hatem Tawfiq, confirmed that liberalizing the exchange rate is considered a positive matter, especially after making foreign currency available in banks.

The price of the dollar has witnessed a state of decline, as it is currently witnessing about 47.2 pounds – and it had exceeded 60 pounds – but the price of the customs dollar has risen, and now coordination is being made with companies working in the field of solar energy with the aim of holding a meeting with customs officials in Egypt to present ways to mitigate the impact of the increase in the customs price. On solar power plants.