The plant, with an annual power generation capacity of 10 MW, is spread over an area of 20 hectares near the central city of Isfahan, Press TV reported.
The project, which was jointly implemented by Iran's Ghadir Electricity and Energy Company and Greece's Metka engineering firm, took seven months to complete and involved an investment of about $15 million.
The plant has around 39,000 solar panels each with an area of around 0.64 square meters. The panels are equipped with advanced solar tracking system, the report added.
Renewable Energy Organization of Iran (SUNA) has already bought the electricity generated from the project for a period of 20 years.
Iran's last major solar power plant was inaugurated in February in the western province of Hamedan. The plant comprised two seven-megawatt units.
Iran is heavily dependent on natural gas and oil for power generation and is one of the most energy-intensive countries in the world since government subsidies for fossil fuels encourage inefficient energy use.
Water shortage and air pollution, however, is becoming an acute problem for the country of over 80 million people, forcing officials to embrace the idea of expanding renewable energy capacity.
Existing wind and solar capacity is tiny. According to SUNA, there are only 15 wind farms in the country which has the potential capacity to generate 100,000 megawatts from wind alone.
Iran aims to generate 5,000 megawatts of energy from renewable sources by 2020, with more than 4,000 megawatts expected to come from wind power. The country has approximately 141 MW of installed wind power.
SUNA is seeking $10 billion to draw in direct private investment by 2018 and $60 billion by 2025. The national grid is also being upgraded to cope with growing demand for renewable energy sources.
Energy producers from Germany, Italy, India, South Korea and Japan have visited the country to test the waters for possible investment.