PVTIME – In a policy move designed to boost residential photovoltaic adoption and unlock greater private-sector investment across the country’s solar market, Iraq’s Council of Ministers has abolished customs duties on imported solar-power equipment, following the cabinet resolution dated 21 October 2026.
The governmental ruling applies to incoming solar hardware intended for household-scale installations. By removing import levies, policymakers aim to reduce the initial cost of hardware for domestic users, thereby alleviating pressure on Iraq’s frequently overloaded national electricity grid. Households have long relied on decentralised solar generation to offset an unreliable public power supply, and this measure will make such systems more financially accessible for local consumers.
Beyond stimulating the domestic rooftop PV segment, the reform creates improved commercial conditions for private enterprises operating within the renewable energy value chain. It removes a key cost barrier for importers, distributors, and installers, thereby encouraging greater private sector participation in Iraq’s clean energy transition without the need for direct public subsidy spending.
The cabinet’s decision complements the ongoing work of Iraq’s Ministry of Electricity in developing regulatory frameworks to support solar deployment. Draft rules governing the connection of distributed PV systems to the grid are undergoing legal review. Once finalised, these rules will govern how household solar installations interact with the national power infrastructure.
Industry observers note that the elimination of tariffs represents a meaningful market signal, though actual uptake will still depend on the implementation of accompanying grid access regulations and supply chain logistics across Iraq. No additional taxes or non-tariff requirements for solar hardware have been announced alongside the resolution to remove duties.
