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Iraq’s Council of Ministers has approved the removal of customs duties on solar energy systems brought into the country, according to the Iraqi News Agency. The Iraqi News Agency reported that the cabinet framed the decision as a way to support the shift toward renewable energy and to lower the costs of acquiring such systems.
The change follows a formal proposal that Iraq’s Electricity Minister, Ali Saadi Waheeb, submitted to the Prime Minister last month seeking a cut in duties on solar energy systems. The rate had originally stood as high as 33% before being lowered to 5% in February this year, a reduction that covered photovoltaic panels, cables, inverters and lithium batteries. That step came after Iraq’s Central Bank moved earlier in the month to grant loans worth IQD 6 billion, equivalent to $4.6 million, for solar energy systems.
The Iraqi News Agency’s latest update adds that the Ministry of Electricity has finished a draft set of regulations to govern how solar systems connect to the national grid. The agency said the rules, made up of 40 articles, are intended to set out mechanisms for grid interconnection and for the exchange of electrical energy between citizens and the national network. They would also allow citizens to link their solar systems to the grid through smart meters.
The ministry says it has approached Iraq’s State Council to complete the legal drafting of the regulations, which would then go to the Council of Ministers for formal approval.
Iraq’s solar market is building momentum. The country’s first solar module production line, located in the Karbala governorate of central Iraq, reached inauguration in July. A 300 MW solar project is under development in Karbala, with its first phase of 22 MW going live in September 2025. The largest solar project under development in the country, a planned 1 GW facility in the southeastern governorate of Basra, entered trial operation in March with the switching on of 61 MW.
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