Egypt is set to begin large-scale solar panel production in early 2026, with a local component rate of up to 90%, according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI). Several factories are expected to start operations in the first quarter of 2026, marking a major step toward expanding the country’s renewable energy sector, reports Cairo Scene.
Heiba said Egypt is poised for rapid growth in renewable energy over the next two years, supported by new investment policies and government initiatives.
Among these measures is a new law offering incentives for green hydrogen projects and related industries. Heiba noted that environmental protection has become a key factor in determining investment incentives across all sectors. “Projects with a stronger environmental focus receive higher benefits. For instance, manufacturers of electric vehicles are granted greater incentives than those producing fossil-fuel vehicles,” he said.
Heiba also highlighted the Authority’s collaboration with other organisations to promote environmental awareness in the business sector. This includes hosting workshops on the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will come into effect in 2026, to help Egyptian companies prepare for the new carbon regulations.
