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Key Insights
Iraqi citizens are increasingly adopting solar power systems to counter persistent national grid failures and high electricity costs, particularly in agricultural regions.
The surge in solar adoption is a market-driven response to Iraq's significant energy deficit, with peak demand projected at 55 GW against a supply of only 27 GW in 2025.
Off-grid solar installations offer rapid payback periods of 1-3 years, eliminating reliance on expensive and polluting diesel generators, thus providing economic and environmental benefits.
Government initiatives, including a 12 GW solar target by 2030 and low-interest loans from the Central Bank, are supporting the widespread transition to solar energy across the country.
MOSUL, Iraq – Iraqi citizens, particularly in agricultural regions, are increasingly turning to solar photovoltaic (PV) systems to mitigate the severe and persistent deficiencies of the national electricity grid, which has struggled to provide adequate supply for over a decade. This grassroots adoption is driven by the prohibitive costs of unreliable grid power and the necessity for consistent energy, especially during the searing summer months when temperatures frequently exceed 40 degrees Celsius (104°F).
Wheat farmer Abdallah al-Ali from Nineveh province exemplifies this trend, having significantly reduced his monthly electricity bill from nearly a million Iraqi dinars ($763.94) to 80,000 dinars by installing solar panels for his irrigation systems. “Farmers are turning to solar to reduce their bills and lower the load on water pumps. The electricity from solar is stable,” al-Ali stated, underscoring the immediate benefits of energy independence and reliability. This shift is particularly impactful in rural areas, where 70% of clients for local solar installation companies like Mosul Solar reside, according to its owner, Mohammed al-Qattan.
Iraq, a leading OPEC oil producer, has faced chronic power shortages since the 2003 U.S.-led invasion, with under-investment and mismanagement leaving the national grid unable to meet demand. Peak summer demand in 2025 is projected at 55 GW, while supply stands at a mere 27 GW, as estimated by Iraq’s electricity minister in January. This significant shortfall has spurred a surge in demand for solar solutions, with interest soaring in 2024 and 2025 across both rural and urban areas.
While an average 5-6 kilowatt solar system costs between 5 and 10 million Iraqi dinars, users typically recoup the upfront investment within one to three years. These systems, often coming with a 15-year warranty, eliminate the need for costly and polluting diesel generators, which many households previously relied upon for backup power. Hassan Taher, an agricultural engineer and Mosul resident, noted the dual benefit: “My bills are now very low, and the panels even helped reduce the heat in our kitchen by insulating the roof.”
Most installed solar systems are off-grid, allowing owners near self-sufficiency and requiring payment to the national grid only for night-time usage. This arrangement is particularly attractive to farmers who operate high-voltage pumps during the day. The Iraqi government is also actively promoting solar integration, with plans to install 12 GW of solar capacity by 2030, including a 1 GW solar plant for Basra this year. Furthermore, the Central Bank has introduced low-interest loans to encourage solar panel adoption, making these systems more accessible to middle- and low-income citizens, as observed by Omar Abdul Kareem Shukr, head of Sama al-Sharq Company, a solar panel vendor. This concerted effort from both the public and private sectors signals a transformative period for Iraq’s energy landscape, moving towards a more sustainable and resilient power supply. The transition from a centralized, failing grid to distributed, citizen-driven solar power represents a significant step towards energy security and economic stability for the nation.