Egypt bets on rooftop solar to power greener, more competitive industry

Egypt is accelerating its industrial green transition with an ambitious plan to install rooftop solar systems on 7,000 factories, aiming to ease pressure on the national power grid, lower energy costs and boost the competitiveness of one of the country's largest economic sectors.

The initiative, dubbed "Industry Sun", targets the installation of 1,000 megawatts of rooftop solar capacity in its first phase, with a focus on reducing production costs in energy-intensive industries while advancing Egypt's shift toward cleaner manufacturing.

According to Egypt's Ministry of Industry, factories are among the country's largest consumers of electricity and natural gas, relying heavily on energy to power machinery, furnaces, heating systems and manufacturing processes, making energy one of the biggest components of production costs.

"By shifting part of their energy needs to solar power while improving efficiency, the government hopes manufacturers will become more competitive in domestic and export markets, support the country's climate goals and accelerate the transition to greener industrial production," the ministry said in a statement.

The program will initially target ceramics and sanitary ware manufacturers, industries that are both energy-intensive and export-oriented.

Participating factories will develop action plans to reduce natural gas consumption by up to 25 percent and electricity use by 15 percent through collaboration with furnace and production-line manufacturers, energy efficiency service companies and solar energy providers.

The ministry said it is working with the ministries of finance and electricity and renewable energy to finalize the technical and financial framework for the initiative ahead of its rollout.

"The initiative will give factories a greater ability to compete in local and export markets, especially as compliance with environmental standards becomes increasingly important in global trade," the ministry said.

The government said Egypt's abundant solar resources and the large, underutilized rooftops of industrial facilities make rooftop photovoltaic systems a practical way to expand renewable energy generation without requiring additional land.

The transition to solar power is expected to reduce factories' dependence on electricity and natural gas for production, heating, cooling and industrial processes, particularly in energy-intensive sectors such as ceramics, cement, glass, steel, chemicals and building materials, helping lower one of manufacturers' largest operating expenses.

The rooftop solar initiative forms part of Egypt's Vision 2030 and the Egyptian Industry Strategy 2030, which seek to modernize the country's manufacturing sector through cleaner energy, greater efficiency and lower carbon emissions while strengthening the global competitiveness of Egyptian exports.