Iraq has abolished import duties on complete solar energy systems, including PV modules, inverters, cables and lithium batteries, in a move aimed at encouraging private-sector investment and promoting household solar power adoption.
The decision follows earlier tariff reductions from 33% to 5% in February 2026, with the latest measure removing the remaining duties.
Key developments in Iraq’s solar market include:
Grid connection rules: Iraq’s Ministry of Electricity has completed a draft regulation containing 40 articles to establish a two-way electricity exchange mechanism, allowing households to connect solar systems to the grid through smart meters.
2030 targets: The country aims to reach 12 GW of installed solar capacity and generate 33% of its electricity from renewable sources.
Financial support: A dedicated fund of USD 680 million has been established to support renewable energy development.
Local manufacturing: Iraq’s first domestic solar module production line began operations in June 2026, with an annual capacity of 200 MW and plans to expand to 600 MW.
The removal of import duties, combined with proposed grid-connection rules and domestic manufacturing expansion, could improve access to solar equipment and support market growth in Iraq. Implementation of the new regulations and funding measures will be key to achieving the country’s renewable energy targets.
Gamko energy, Worldwide Energy and Manufacturer, is a professional solar module manufacturer with a 10-year experience in production and quality control since 2008.