Iraq Fully Removes Import Tariffs on Solar Energy Systems

Industry News · Global Solar PV Updates

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Iraq Fully Removes Import Tariffs on Solar Energy Systems

PV Modules, Inverters, and Battery Storage Duties Reduced to Zero; 12 GW Target by 2030

October 28, 2026  |  Source: Solarbe / Iraqi Ministry of Electricity

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Fig.1: Industrial-scale solar power plant in Karbala desert, Iraq (Source: AP News)

The Iraqi government has recently announced the complete removal of import tariffs on solar energy system kits, covering photovoltaic modules, inverters, cables, and supporting energy storage lithium batteries. Previously, relevant tariffs had been gradually reduced from 33% to 5% by February 2026; this latest move brings them directly to zero, marking Iraq's official opening to global photovoltaic products.

The Iraqi Ministry of Electricity stated that this measure aims to support private sector development, promote renewable energy adoption in households and commercial/industrial sectors, and alleviate the chronic power shortages that have long plagued the country. Meanwhile, the Ministry has completed drafts of 40 photovoltaic grid-connection regulations, which will establish a two-way electricity exchange mechanism and enable residential PV system grid-connection through smart meters.

To support long-term energy transition goals, Iraq has set a development plan targeting 12 GW of photovoltaic installed capacity by 2030 and a 33% share of renewable energy in power generation, accompanied by a dedicated fund of USD 680 million. Additionally, the country's first domestic PV module production line commenced operation in June 2026, with an initial annual capacity of 200 MW and plans to expand to 600 MW.

Analysts note that Iraq's location in the Middle East provides exceptionally abundant solar resources, with average annual sunshine hours exceeding 3,000, offering natural advantages for large-scale photovoltaic development. The combination of tariff elimination and improved grid-connection policies is expected to attract significant international PV companies into this market. For Chinese PV export enterprises, Iraq is poised to become another important growth market in the Middle East, following Saudi Arabia and the UAE.

Fig.2: Aerial view of large-scale solar farm in Middle East desert (Source: Energy Job Search)

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Compiled by: Guangdong Qinpeng Electric Power Co., Ltd.

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