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Iraq scraps customs duties on imported solar systems

Iraq scraps customs duties on imported solar systems

Rule Changes

Cabinet approval follows a cut from 33% to 5% earlier in 2026 and a draft rulebook for grid connections.

3 days ago: Human Progress reports Iraq's solar duty removal

Overview

Updated 1 hour ago

Iraq's cabinet approved zero customs duties on imported solar panels, inverters, lithium batteries and cables on October 20, 2026. The rate had been as high as 33% before a February 2026 cut to 5%.

The change lowers the upfront cost of a home or business solar kit in a country where grid power is unreliable. It also comes with a draft 40-article rulebook for connecting solar systems to the national grid, which could let customers exchange power with the network.

Why it matters

A zero-duty solar kit is cheaper, but Iraq's grid rules will decide whether households can connect and offset their power bills.

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Key Indicators

0%
Customs duty on imported solar systems
Rate after the October 20, 2026 cabinet decision.
33%
Highest prior customs rate
The peak rate before Iraq began cutting solar duties.
5%
Rate before the October removal
Set in February 2026 on panels, cables, inverters and lithium batteries.
40
Articles in draft grid-connection rules
The draft covers smart meters and power exchange with the national grid.

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People Involved

AA
Ali Falih Al-Zaidi
Prime Minister of Iraq
In office
AW
Ali Saadi Waheeb
Iraqi Minister of Electricity
In office

Organizations Involved

Council of Ministers
Council of Ministers
Government Cabinet
Approved zero customs duties on solar imports

Iraq's cabinet, which approved the tariff removal on October 20, 2026.
Ministry of Electricity
Ministry of Electricity
Government ministry
Proposed tariff cut and drafted grid rules

The ministry that proposed the tariff cut and wrote the draft grid-connection regulations.
CB
Central Bank of Iraq
Central bank
Runs a solar loan program

Iraq's central bank, which offered loans for solar energy systems.
GA
General Authority of Customs
Customs authority
Had set a 5% duty on solar equipment

The customs body that set the 5% solar equipment duty in February 2026.

Timeline

September 2025 October 2026

8 events Latest: 3 days ago
Tap a bar to jump to that date

  1. Human Progress reports Iraq's solar duty removal

    Latest Report

    The report summarizes the October 20 cabinet decision.

  2. Cabinet zeroes customs duties on solar imports

    Policy

    The Council of Ministers approved the removal and authorized a 600–1,000 MW power contract.

  3. Ministry completes draft grid-connection rules

    Regulation

    The 40-article draft covers smart meters and power exchange with the national grid.

  4. Electricity minister proposes scrapping solar duties

    Policy

    Ali Saadi Waheeb asked the prime minister to remove the remaining tariff.

  5. Iraq opens first solar module production line

    Industry

    The line in Karbala reached inauguration.

  6. Basra solar project enters trial operation

    Energy

    Iraq's 1 GW Basra project switched on 61 MW in a trial phase.

  7. Iraq cuts solar customs duty to 5%

    Policy

    Duties on panels, cables, inverters and lithium batteries fell from as high as 33%.

  8. Karbala solar project's first phase goes live

    Energy

    The first 22 MW phase of a 300 MW solar project in Karbala began operating.

Scenarios

1

Iraq's solar imports rise after zero duties

Likely Resolves by Q2 2027

Discussed by: pv magazine and Iraq's Electricity Ministry

If the tariff cut lowers system costs as intended, importers and households could order more panels and batteries. The test is whether Iraq's customs data shows a sustained increase in solar equipment imports.

2

Grid-connection rules stall in legal review

Possible Resolves by Q2 2027

Discussed by: pv magazine

The draft 40-article regulations still need State Council legal review and cabinet approval. If that process stalls, homeowners can buy cheaper panels but may lack clear rules to connect them.

3

Solar loan uptake remains weak

Possible Resolves by Q1 2027

Discussed by: Gulf International Forum

Iraq's Central Bank set aside IQD 6 billion, about $4.6 million, for solar loans. Gulf International Forum reported weak turnout despite easier terms. Zero duties may not fix financing gaps if households still cannot qualify.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

February 2026

Iraq's February 2026 solar tariff cut

Iraq's customs authority cut duties on solar panels, cables, inverters and lithium batteries from as high as 33% to 5%. The change lowered import costs but left a residual duty in place.

Then

Solar equipment became cheaper to import, but buyers still paid a 5% customs rate.

Now

Eight months later the cabinet removed the remaining 5%, completing a phased tariff reduction.

Why this matters now

The October decision finished a process that began with the February cut, rather than starting from a blank slate.

July 2026

Karbala solar module line (2026)

Iraq's first solar module production line reached inauguration in Karbala. The province also hosts a 300 MW solar project, whose first 22 MW phase went live in September 2025.

Then

Domestic solar assembly began in central Iraq.

Now

The line gives Iraq a local manufacturing foothold while utility-scale projects continue.

Why this matters now

The tariff removal lowers costs for imported components and finished systems while domestic assembly starts.

March 2026

Basra 1 GW solar trial (2026)

Iraq's largest planned solar project, a 1 GW facility in Basra, entered trial operation with 61 MW switched on. The project remains under development.

Then

First power flowed from the Basra site.

Now

The project tests Iraq's ability to integrate large solar plants into a strained grid.

Why this matters now

It shows utility-scale solar is moving in parallel with the import rules that affect household and business systems.

Sources

(10)
+4
Human Progress pv magazine Shafaq News Jarayid Alwassat IQ Renewables Now Gulf International Forum Footage Iraqi Al Arabiya GlobeAlert