The company said it plans to invest £440m ($594m) in the project and construction is planned to begin next year.
Under the terms of the deal, Quercus will build and operate the plant, which is planned to come online in 2021. The work will be completed in stages in a bid to reduce investor risk, with 100 MW sections coming online every six months.
Once completed, the plant will be the world’s sixth-largest PV installation. It also represents the company’s first investment outside Europe, where it operates some 40 plants.
To take advantage of Iran’s local content requirement and gain a corresponding feed-in tariff (FiT) boost of up to 30 per cent, Quercus will work with Iranian engineering and construction firm Iran Power & Water Equipment and Services Export Company (Sunir) to build the plant.
Quercus joins 76 foreign companies on board to build over 900 MW in solar power capacity in Iran after sanctions were lifted last year.