Egypt's renewables sector to boom with solar panel production takeoff in Q1 2026: Heiba
Updated 11/3/2025 2:04:00 PM
Arab Finance: A large number of solar panel factories are expected to begin actual production in the first quarter (Q1) of 2026, with a local component ratio ranging between 80% and 90%, the General Authority for Investment and Free Zones (GAFI) CEO Hossam Heiba announced.
This is expected to cause a boom in the Egyptian renewable energy sector over the next two years.
The remarks came during Heiba's participation in the second edition of the Climate Forum 2025, organized by Chapter Zero Egypt.
He reviewed Egypt's efforts to stimulate the renewable energy sector, highlighting the enactment of a separate law for incentives related to green hydrogen production projects and their derivatives.
The authority introduced an environmental protection factor for granting investment incentives across all sectors. Therefore, electric vehicle (EV) manufacturers receive higher incentives than manufacturers of vehicles that rely on traditional fossil fuels.
Moreover, Heiba outlined the authority’s efforts to raise awareness within the business community about the importance of environmental sustainability in projects, in cooperation with other relevant government entities.
For eight consecutive months, the GAFI held awareness seminars on the Carbon Accelerator Mechanism (CCAM), which the European Union has adopted and will implement starting in 2026 to reduce the carbon footprint of EU imports.
The CEO added that the authority successfully attracted significant European and Chinese investments in the renewable energy sector, aiming to reduce the carbon footprint of all Egyptian companies.
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