Grid–connected photovoltaic (GCPV) systems are currently known as a top leading source of energy among all distributed generators. Despite numerous benefits, this technology suffers from the high initial burden cost. Hence, governments have been decided to encourage the investors to install GCPV systems through different support mechanisms such as feed–in tariff (FIT). This paper investigates the viability of GCPV technology under a new dynamic FIT strategy. The new scheme introduces the annual update of the FIT regarding the goods retail prices and Euro exchange rate rather than the retail electricity cost. These objects are two parameters mostly affect the justification of a project in developing countries with predominantly imported equipment and unstable economic conditions. The new policy is described, and the economic perspective is cleared by computing the economic indices, including net present value (NPV), internal rate of return (IRR), and payback period time (PBT) as well as the levelized cost of energy (LCOE) for Iran as a case study. The computed outputs and significant rise in the installed capacity rate after running the proposed scheme, remark the technology viability for short and mid–term courses in the country. The outputs demonstrate proper attractiveness of the power stations for foreign investment probably does not benefit from excess FIT regarding the utilization of foreign PV module. Finally, it has been concluded that this program can be implemented in developing countries, especially in the Middle East region with almost similar climate patterns.

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