Iraq has approved plans to do away with customs duty on imported solar panels
The decision is aimed at accelerating the adoption of solar and encouraging private investment
The Council of Ministers has not specified any implementation deadline for this announcement
Iraq’s Council of Ministers has approved the removal of customs duties on imported solar energy systems to promote wider adoption. The move follows a reduction in duties from 33% to 5% in February 2026.
The government says the decision aims to both encourage citizens to install solar PV systems and attract private investment. However, the announcement does not specify an implementation date.
The move forms part of Iraq’s broader efforts to diversify its electricity supply and meet rising demand amid growing interest in distributed solar power. For households, solar systems offer a way to reduce reliance on private diesel generators and improve energy security during outages.
Earlier this year, Iraq announced a program to equip 850 government buildings with solar energy systems over six years, with 550 funded by the government and 300 through international support.
Local media reports put Iraq’s peak electricity demand at roughly 50 GW to 55 GW, compared with available generation of around 27 GW to 28 GW, highlighting the gap between supply and demand.
Regional conflict has also disrupted gas supplies, putting further pressure on Iraq’s electricity system, which relies on Iranian gas for nearly 40% of its electricity generation needs. Falling solar technology costs are also encouraging adoption, with Iraq’s imports of Chinese solar panels increasing from 0.43 GW at the end of 2024 to 1.89 GW a year later, according to DW.
Earlier this year, in March 2026, Iraq said it would accelerate solar energy projects as part of an emergency plan to secure electricity supplies to reduce its reliance on imported fuels amid rising tensions in the Middle East (see Iraq To Accelerate Solar Projects Amid Rising Middle East Tensions).
Iraq aims to develop 12 GW of solar power capacity by 2030. At the end of 2025, solar energy accounted for only 64 MW of the country’s power mix, according to the International Renewable Energy Agency (IRENA).
In March 2026, TotalEnergies began trial operations at the first 250 MW phase of its 1 GW Basra Solar Power Plant, which is expected to become Iraq’s largest solar project once fully completed (see Middle East & Africa Solar PV News Snippets).
