Egypt’s solar energy sector is poised for exponential growth, with annual installations expected to exceed 2 GW over the next three years and reach 3.5 GW by 2029. Following the addition of 800 MW in 2025, the country’s cumulative capacity is projected to surge from 2.9 GW to 34.3 GW by 2035. Driven by favorable government policies, rising electricity tariffs, and a shift toward utility-scale and industrial projects, solar power is set to become the cornerstone of Egypt’s renewable energy landscape, supported by emerging local manufacturing capabilities.
Recent data from GlobalData highlights a significant uptick in Egypt’s solar deployment. After ending 2024 with 2.1 GW, the nation added 800 MW in 2025, bringing the total to 2.9 GW. The momentum is expected to accelerate, with 2.2 GW forecasted for 2026 and consistent additions of 2.1 GW in the following two years. By the end of the decade, annual capacity increases are predicted to hit 3.5 GW, positioning solar as the primary driver of the country’s 49.7 GW renewable energy goal for 2035.
Mohammed Ziauddin, a power analyst at GlobalData, attributes this expansion to Egypt’s abundant natural resources and a robust legislative framework. The government has successfully attracted independent power producers through tax incentives, reduced customs duties, and streamlined land access. Furthermore, long-term power purchase agreements and sovereign guarantees have bolstered investor confidence, particularly in the utility-scale sector, which is expected to represent over 60% of the market.
Large-scale infrastructure is already under development to meet these targets. Last year saw the commencement of Amea Power’s 1 GW solar site, which includes 600 MWh of storage. Additionally, Scatec is moving forward with a 1.1 GW solar project paired with 200 MWh of storage, part of a broader $3.6 billion investment portfolio in the region. These projects emphasize the growing trend of integrating storage solutions to ensure grid stability as renewable penetration increases.
While utility-scale projects dominate, the commercial and industrial (C&I) segment is gaining significant ground. This shift is largely fueled by substantial hikes in electricity tariffs, which rose by up to 46% for commercial users in mid-2024. As subsidies are phased out, onsite solar has become an economically viable alternative for factories, logistics centers, and hotels. In contrast, the residential sector remains stagnant due to high upfront costs and a lack of consumer confidence, with adoption mostly limited to high-income gated communities.
To support this green transition, Egypt is also working to domesticate the solar supply chain. Recent milestones include the groundbreaking of a manufacturing hub designed to produce 2 GW of solar cells and 2 GW of solar modules annually. Furthermore, new partnerships with Chinese firms are set to establish a 5 GW solar cell complex and the nation’s first solar inverter factory, reducing reliance on imports and strengthening the local energy economy.
