The Middle East country announced a reduction in tariffs on photovoltaic modules!

According to foreign media reports, the Iraqi General Administration of Customs revealed that the government has decided to reduce the tariff on solar energy equipment from 33% to 5%, in order to accelerate the popularization of solar energy in the country. The policy covers PV modules , inverters , cables and lithium batteries.

The Iraqi News Agency reported that the decision to reduce tariffs on solar photovoltaic modules had been communicated to customs and was now in effect. The

move comes after the Central Bank of Iraq approved a 6 billion Iraqi dinar ( $4.6 million) loan in February to support the construction of solar energy systems. "Solar module procurement financing will continue to be open until the allocated funds are exhausted, and the demand for related loans is expected to be higher in 2026." Rafal Hussein, director of the Project Initiative Department of the Central Bank of Iraq, told the Iraqi News Agency earlier.

Iraq, located in the Middle East, is rich in solar energy resources, but its photovoltaic development is very slow. According to the International Renewable Energy Agency, by the end of 2024, the cumulative installed capacity of solar energy in Iraq was only 42 MW. " The low demand for clean energy is due to the lack of public awareness and the lack of social and cultural aspects," Hussein said. Efforts must be made in many ways to raise public awareness of the importance of switching to alternative energy sources.

To this end, the government began to make efforts in the solar energy industry. The Iraqi government installed a 2m W photovoltaic system in the government building in 2025 to demonstrate the advantages of renewable energy. The project is part of the Iraqi public sector's plan to upgrade the use of clean energy. The Iraqi Prime Minister's Office said at the time that the electricity consumption of government institutions and public facilities accounted for nearly 30% of the total electricity production in Iraq. In September

2025, the first phase (22 MW) of Karbala solar power plant in central Iraq was completed and put into operation. As the largest photovoltaic power plant in Iraq so far, the final installed capacity target of the project is 300 MW.

In addition, Total Energy plans to build a 1GW photovoltaic project in southern Iraq, and UGT Renewable Energy Company has signed an agreement with the Iraqi government to build a 3GW photovoltaic power plant in the country with 500MWh energy storage.