Iraq Removes Import Duties on Solar Energy Systems
According to the Iraqi News Agency (INA), Iraq's Council of Ministers recently decided to eliminate customs duties on imported solar energy systems. The measure is intended to reduce the cost of clean-energy equipment and encourage the use of solar power by households, businesses, and public institutions. It is seen as an important step in Iraq's efforts to adjust its energy mix and ease pressure on electricity supply.
The Iraqi Ministry of Electricity said the policy adjustment followed a formal proposal submitted by the Minister of Electricity to the Prime Minister. The proposal was aimed at lowering the entry barrier for solar energy systems and related components and encouraging more users to adopt photovoltaic power generation. In February 2026, Iraq had already set a uniform 5% customs duty on solar cells, lithium batteries, inverters, and cables. The latest decision to remove the duties altogether is expected to further reduce the upfront cost of solar systems.
Alongside efforts to lower equipment-import costs, Iraq is also advancing the regulatory framework for distributed solar grid connection. The Ministry of Electricity has completed a draft regulation governing the connection of solar energy systems to the national grid. The draft contains 40 articles covering connection procedures, electricity exchange, and metering. Under the proposed framework, households would be able to connect their solar systems to the national grid through smart meters and have their electricity bills calculated according to the amount of electricity exchanged.
The draft grid-connection regulation remains subject to legal review and approval. The Ministry of Electricity has submitted the relevant materials to the State Council, and the draft will subsequently be referred to the Council of Ministers for consideration in accordance with the required procedures.
In terms of market demand, Iraq is developing a solar market in which residential systems, government-building installations, and large-scale solar plants are progressing in parallel. In 2025, the Ministry of Electricity announced plans to install solar systems at 530 government buildings, with the aim of reducing public institutions' reliance on the national grid and redirecting the electricity saved to households. Iraq has also been using bank-financing programs to support households and businesses in purchasing solar energy systems.
Industry observers believe that, if the removal of import duties is effectively coordinated with the improvement of grid-connection rules, the policy package could further improve Iraq's investment environment for solar energy. In the near term, residential energy-storage systems, commercial and industrial rooftop PV, inverters, and lithium batteries are likely to benefit first. Once the grid-connection policy is formally approved, opportunities for smart meters, energy-management systems, and local installation and maintenance services may expand as well.
However, the implementation of Iraq's solar policies still requires close monitoring. The draft grid-connection regulation has not yet completed final approval, and key details-including connection-capacity limits, surplus-electricity settlement, electrical standards, and equipment-certification requirements-remain to be clarified. Companies seeking to enter the Iraqi market should follow the official implementation rules closely and proceed prudently with product certification, channel development, and project cooperation in line with local grid conditions and approval requirements.
Sources
Iraqi News Agency (INA), pv magazine, and 964 Media. This article has been compiled from publicly available reports. The implementation of the policy is subject to the final official documents issued by the Iraqi government and competent authorities.