Iraq Scraps Import Duties on Solar Systems to Boost Renewable Energy

Iraq has announced the removal of import duties on complete solar energy systems, including PV modules, inverters, cables and lithium-ion energy storage batteries. The move aims to encourage private-sector investment and expand household adoption of renewable energy.

The decision follows a tariff reduction from 33% to 5% in February 2026. The latest measure eliminates the remaining duties, although implementation details have not been fully specified.

Meanwhile, Iraq’s Ministry of Electricity has completed a draft grid-connection regulation containing 40 articles. It would establish a two-way electricity exchange mechanism, allowing households to connect rooftop solar systems to the grid through smart meters.

Iraq aims to reach 12 GW of solar capacity by 2030, with renewables accounting for 33% of electricity generation. A dedicated fund of USD 680 million has also been established to support the transition.

Domestic manufacturing is expanding as well. Iraq’s first locally operated solar module production line began operations in June 2026, with annual capacity of 200 MW and plans to expand to 600 MW.

Together, tariff relief, grid-connection reforms and local manufacturing could support further growth in Iraq’s solar market.