This research investigates the potential of establishing solar panels within the Water and Wastewater Plants of MARKAZI Province (Iran) and analyzes its contribution to mitigate the water crisis. To this end, data on electricity consumption, area, geographical coordinates, and site specifications were collected for all available locations managed by Water and Wastewater Company. After applying specific environmental constraints, a total of 62 sites were identified, with a combined nominal capacity of 80 MW. Subsequently, solar power plants were designed using the PVsyst software. The analysis then proceeded under three scenarios up to the year 2031 including (1) Current Situation scenario, (2) 50% construction scenario, and (3) 100% construction scenario. Since the primary electricity producer in this province is the SHAZAND Thermal Power Plant, the results were examined concerning the water consumption within this plant under each scenario. The findings indicated that the construction of solar power plants could lead to a reduction in water consumption at the SHAZAND Power Plant by 17% and 36% in the second and third scenarios, respectively, compared to the current situation. This reduction consequently exerts a positive influence on the Water Crisis Index. To ensure the quantitative effects of solar power plant development, the results were further analyzed using SimaPro software, assuming domestic production of the solar panels and comparing this against the overall water footprint of the electricity generation. The SimaPro analysis suggested that domestic panel production is not justifiable from the perspective of the social and economic cost of water in Iran.