Iraq Removes Import Tariffs on Solar Systems to Boost Renewable Energy
Iraq eliminates customs duties on solar equipment and finalizes grid-connection rules, accelerating solar adoption across residential and utility-scale projects.
Key takeaways
- Iraq eliminates all customs duties on solar equipment including panels, inverters, cables, and batteries
- Grid-connection regulations with smart-meter requirements are in final legal review
- Utility-scale pipeline includes 300 MW Karbala project and 1 GW Basra project
- Central Bank loan program of $4.6 million complements tariff removal
In this article
Iraq’s Council of Ministers has eliminated all customs duties on imported solar energy systems, removing a 5% tariff that had been in place since February 2026 and replacing an original rate as high as 33%. The decision covers PV panels, cables, inverters, and lithium batteries, and aims to lower acquisition costs for households and developers.
Why did Iraq remove solar import tariffs?
Electricity Minister Ali Saadi Waheeb proposed the full exemption to the Prime Minister last month, citing the need to support the transition toward renewable energy sources. The move follows a Central Bank initiative earlier this year that made IQD 6 billion ($4.6 million) in loans available for solar installations. Together, the policy and financing steps reduce both upfront and financing barriers for residential and commercial buyers.
What grid-connection rules are coming next?
The Ministry of Electricity has completed a 40-article draft regulation governing how solar systems connect to the national grid. The rules establish mechanisms for energy exchange between citizens and the network and will require smart meters for grid-tied systems. The draft is now with Iraq’s State Council for legal review before submission to the Council of Ministers for formal approval. Once adopted, these regulations will enable net-metering-style arrangements that make rooftop solar financially viable for more Iraqis.
How is Iraq’s solar project pipeline expanding?
Utility-scale development is advancing in parallel. The country’s first solar module production line, in Karbala governorate, was inaugurated in July. A 300 MW project in Karbala brought its first 22 MW phase online in September 2025. In Basra, a planned 1 GW project entered trial operation in March with 61 MW commissioned. These projects signal growing investor confidence in Iraq’s solar market.
For homeowners considering solar, understanding system sizing and payback periods remains essential. Solar panels for your home: how to size a system and How does a solar panel system pay for itself? offer practical guidance.
Frequently asked questions
What solar equipment is covered by Iraq's tariff removal?
The exemption covers PV panels, cables, inverters, and lithium batteries imported into Iraq.
When will Iraq's solar grid-connection rules take effect?
The 40-article draft is with the State Council for legal review; after that it goes to the Council of Ministers for formal approval. No effective date has been announced.
How large is Iraq's current solar project pipeline?
A 300 MW project in Karbala has 22 MW operating, and a 1 GW project in Basra has 61 MW in trial operation. The country's first module production line opened in Karbala in July.
Sources
- Iraq removes import tariffs on solar systems · pv magazine · 2026-10-22
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