With so much sunlight, Iraq is very well-positioned to use solar power to help fix its annual summer electricity crisis. So why is it that Iraq's government has only recently started to take solar power seriously?
Residents across Iraq are increasingly turning to residential solar installations as chronic summer blackouts and an unstable national grid drive up the cost of relying on neighborhood generators. Baghdad-based teacher Hiba al-Amiri noted that her family and neighbors began seriously exploring solar power after an Iranian gas cutoff—triggered by an Israeli attack on gas fields in March—reduced electricity supplies and left households heavily dependent on costly local generators.
Setting up a private residential solar system in Iraq typically requires an investment between 5 million and 10 million Iraqi dinars, roughly equivalent to 3,800 to 7,600 US dollars. While the national network generally provides only eight to 12 hours of daily electricity, urban households often pay between 100 and 300 dollars monthly for supplementary neighborhood generator fees. Harry Istepanian, founder of the Iraq Climate Change Center, noted that while citizens were previously deterred by the upfront expenses of solar technology, rising generator fees, declining availability of state-subsidized diesel, and ongoing energy insecurity have increased the appeal of renewable alternatives.
Government measures have additionally supported this transition. Earlier this year, Iraqi authorities lowered import duties on solar components from 33% to 5%, following the central bank's introduction of favorable loan schemes for citizens and small businesses in early 2025. Data from the specialist media outlet Attaqa indicates that Iraq's imports of Chinese solar panels quadrupled between 2024 and 2025, surging from 0.43 gigawatts to 1.89 gigawatts and positioning the nation as the fifth-largest importer of Chinese solar panels among Arab countries.
On a national level, Iraq faces a severe electricity deficit, producing roughly 29 gigawatts against a regular demand of 40 gigawatts, with summer demand projected to reach between 54 and 62 gigawatts. The ongoing disruption of Iranian gas imports and delays in planned electricity imports from Gulf states have exacerbated these shortages, compounded by budget pressures linked to oil export constraints through the blocked Strait of Hormuz. To address the shortfall, Iraq opened an industrial solar plant in Karbala last September designed to add 300 megawatts to the grid, while a facility in Basra launched partial operations in March with a targeted capacity of 1 gigawatt by 2028. The government has also announced plans to equip public buildings, including schools, universities, hospitals, and banks, with solar panels as part of a broader goal to reach 12 gigawatts of renewable production by the end of the decade.
Despite these developments, energy experts emphasize that solar energy serves as only one component of a wider structural challenge. Umud Shokri, a senior visiting fellow at George Mason University, cautioned that resolving the nation's electricity crisis requires comprehensive grid reforms, enhanced gas utilization, transmission upgrades, and broader institutional investment alongside renewable energy adoption.
Originally reported by DW.com on Jun 6, 2026.
