Iraq Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Iraq

  1. Weather & Climate (n.d.). Average Monthly Sunshine hours in Baghdād. Retrieved November 19, 2024, from https://weather-and-climate.com/average-monthly-hours-Sunshine,baghd-d,Iraq
  2. Mustansiriyah Journal of Pure and Applied Sciences (2024, September 30). Performance Analysis of 15kW Solar PV System. Retrieved November 19, 2024, from https://mjpas.uomustansiriyah.edu.iq/index.php/mjpas/article/view/96
  3. Global Petrol Prices (2024, March). Iraq electricity prices. Retrieved November 19, 2024, from https://www.globalpetrolprices.com/Iraq/electricity_prices/
  4. Georgetown Journal of International Affairs (2020, January 13). Iraq’s Power Sector: Problems and Prospects. Retrieved November 19, 2024, from https://gjia.georgetown.edu/2020/01/13/iraqs-power-sector-problems-and-prospects/
  5. The London school of Economics and political science (2020, March 24). Iraq’s Power Conundrum: How to Secure Reliable Electricity While Achieving Energy Independence. Retrieved November 19, 2024, from https://blogs.lse.ac.uk/mec/2020/03/24/iraqs-power-conundrum-how-to-secure-reliable-electricity-while-achieving-energy-independence/
  6. Washington Institute (2023, July 17). Iraq’s Power Problem (Part 1): Persistent Financial and Technical Challenges. Retrieved November 19, 2024, from https://www.washingtoninstitute.org/policy-analysis/iraqs-power-problem-part-1-persistent-financial-and-technical-challenges
  7. International Renewable Energy Agency (2024). Renewable energy statistics 2024. Retrieved November 19, 2024, from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf
  8. PV Tech (2024, February 22). Iraq looks to deploy 12GW solar PV by 2030. Retrieved November 19, 2024, from https://www.pv-tech.org/iraq-looks-to-deploy-12gw-solar-pv-by-2030/
  9. Jummar media (2024, May 17). Investing in the sun: On opportunities and deals in Iraq’s electricity sector. Retrieved November 19, 2024, from https://jummar.media/en/5338
  10. AGBI – Arabian Gulf Business Insight (2024, February 22). Iraq plans push on solar and green hydrogen projects. Retrieved November 19, 2024, from https://www.agbi.com/renewable-energy/2024/02/iraq-solar-green-hydrogen-projects-renewables-push/
  11. HAL open science Retrieved (2021, July 20). Economic Analysis of the Electricity Mix of Iraq Using Portfolio Optimization Approach. November 19, 2024, from https://ifp.hal.science/hal-03292662/document
  12. +964 media (2024, August 21). Kurdistan region electricity grid provides only 11 hours of daily power per household. Retrieved November 19, 2024, from https://en.964media.com/23611/
  13. Anadolu Ajansı (2021, July 8). Oil-rich Iraq grapples with power outages for 30 years. Retrieved November 19, 2024, from https://www.aa.com.tr/en/middle-east/oil-rich-iraq-grapples-with-power-outages-for-30-years/2297835#
  14. Tech xplore (2023, November 2). Iraq inches toward solar-powered future. Retrieved November 19, 2024, from https://techxplore.com/news/2023-11-iraq-inches-solar-powered-future.html
  15. Zawya (2024, September 20). Iraq to award contract to install rooftop solar on public buildings. Retrieved November 19, 2024, from https://www.zawya.com/en/projects/utilities/iraq-to-award-contract-to-install-rooftop-solar-on-public-buildings-dc6cjizf
  16. Middle East economy (2024, May 6). Iraq’s first solar power plant moves forward. Retrieved November 19, 2024, from https://economymiddleeast.com/news/iraq-first-solar-power-plant/
  17. United Energy Group Limited (n.d.). Inauguration ceremony of UEG Iraq Block 9, 2.5MWp+2.5MWh off-grid solar power project. Retrieved November 19, 2024, from http://www.uegl.com.hk/en/newsDetail?nid=49
  18. Solar quarter (2024, September 11). Iraqi council of ministers approves solar energy initiative for residential areas. Retrieved November 19, 2024, from https://solarquarter.com/2024/09/11/iraqi-council-of-ministers-approves-solar-energy-initiative-for-residential-areas/
  19. Welt hunger hilfe (2022, January 19). Solar Energy for Northern Iraq. Retrieved November 19, 2024, from https://www.welthungerhilfe.org/news/latest-articles/solar-power-plants-in-northern-iraq
  20. Energy & Utilities (2024, May 28). Iraq powers up on grid and solar projects. Retrieved November 19, 2024, from https://energy-utilities.com/iraq-powers-up-on-grid-and-solar-projects-news124540.html
  21. Sun-grow power (2023, December 8). Global PV giants spearhead Iraq’s renewable energy revolution. Retrieved November 19, 2024, from https://en.sungrowpower.com/newsDetail/4615/global-pv-giants-spearhead-iraq-s-renewable-energy-revolution
  22. Salary Explorer (n.d.). Average Salary in Iraq 2024. Retrieved November 19, 2024, from https://www.salaryexplorer.com/average-salary-wage-comparison-iraq-c103
  23. World salaries (n.d.). Average Solar Engineer Salary in Irbil, Iraq for 2024. Retrieved November 19, 2024, from https://worldsalaries.com/average-solar-engineer-salary-in-irbil/iraq/
  24. World salaries (n.d.). Average Solar Energy Installation Manager Salary in Iraq for 2024. Retrieved November 19, 2024, from https://worldsalaries.com/average-solar-energy-installation-manager-salary-in-iraq/
  25. World salaries (n.d.). Average Solar Photovoltaic Installer Salary in Al-Mawsil, Iraq for 2024. Retrieved November 19, 2024, from https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-al-mawsil/iraq/
  26. Worldometers (n.d.). Iraq population. Retrieved November 19, 2024, from https://www.worldometers.info/world-population/iraq-population/
  27. Homele (n.d.). Warehouse for sale and rent in Iraq. Retrieved November 19, 2024, from https://homele.com/properties/for-sale-and-rent/warehouse
  28. The World Bank (2017, February 10). Project Information Document/  Integrated Safeguards Data Sheet (PID/ISDS). Retrieved November 19, 2024, from https://documents1.worldbank.org/curated/en/947941487509910477/pdf/ITM00184-P162094-02-19-2017-1487509904633.pdf
  29. Homele (n.d.). Office for sale and rent in Iraq. Retrieved November 19, 2024, from https://homele.com/properties/for-sale-and-rent/office
  30. Statista (2024, September). Non-life insurances – Iraq. Retrieved November 19, 2024, from https://www.statista.com/outlook/fmo/insurances/non-life-insurances/iraq
  31. Wikipedia (n.d.). Iraq – Oil and energy. Retrieved November 19, 2024, from https://en.wikipedia.org/wiki/Iraq
  32. CIA.gov (2024, November 6). The world factbook – Iraq. Retrieved November 19, 2024, from https://www.cia.gov/the-world-factbook/countries/iraq/
  33. The international energy agency (IEA) (n.d.). Energy system of Iraq. Retrieved November 19, 2024, from https://www.iea.org/countries/iraq
  34. Regional Center for Renewable Energy and Energy Efficiency (RCREEE) (2022, January 19). Catalyzing the Use of Solar Photovoltaic Energy in Iraq. Retrieved November 19, 2024, from https://rcreee.org/catalyzing-the-use-of-solar-photovoltaic-energy-in-iraq/
  35. Iraq Energy (2020, February 2). Overview of Iraq’s Renewable Energy Progress in 2019. Retrieved November 19, 2024, from https://iraqenergy.org/2020/02/20/overview-of-iraqs-renewable-energy-progress-in-2019/#:~:text=Iraq%20has%20been%20endowed%20by,as%20Muthana%20and%20Anbar%20provinces.
  36. Solar quarter (2024, September 14). Week In MiddleEast: Jordan implements new system for renewable energy integration and energy efficiency; Iraqi council of ministers approves solar energy initiative for residential areas; and more. Retrieved November 19, 2024, from https://solarquarter.com/2024/09/14/week-in-middleeast-jordan-implements-new-system-for-renewable-energy-integration-and-energy-efficiency-iraqi-council-of-ministers-approves-solar-energy-initiative-for-residential-areas-and-more/
  37. Arab Gulf States Institute in Washington (2023, November 14). Urgent reforms needed to unlock Iraq’s green potential. Retrieved November 19, 2024, from https://agsiw.org/urgent-reforms-needed-to-unlock-iraqs-green-potential/
  38. Power Technology (2024, October 21). Power plant profile: Karbala Solar PV Park, Iraq. Retrieved November 19, 2024, from https://www.power-technology.com/data-insights/power-plant-profile-karbala-solar-pv-park-iraq/
  39. Solar Iraq (2023, July 28). Directory Companies. Retrieved November 19, 2024, from https://solar-iraq.com/directory-companies/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Iraq (Baghdad) receives an average of 3,250 hours of sunshine per year.

The sunniest month is August with approximately 353 hours of sunshine, while January records the least at about 192 hours.1

Read less

kWh per kWp installed

The average annual energy generation per unit of installed photovoltaic (PV) capacity in Iraq is approximately 1,159 kWh/kWp, based on daily average of 3.15kWh/kWp.2

Read more

 

Average cost per kWh from utility company

As of March 2024, the average cost of electricity from utility companies in Iraq (including power, distribution and transmission costs as well as taxes) is $0.015 per kWh for residential consumers and $0.046 per kWh for businesses.3

Read more

 

Reliability of electrical power supply grid

Iraq’s electrical power supply grid faces significant reliability challenges due to a combination of infrastructure damage, high loss rates, and frequent power outages.456

  • Infrastructure Condition: The grid has suffered extensive damage from decades of conflict, resulting in inadequate transmission and distribution systems. Approximately 30-50% of electricity is lost due to poor infrastructure and maintenance, with technical losses accounting for about 40% of this figure.

Read less

  • Power Outages: Rolling blackouts are common, exacerbated by a persistent supply-demand gap. In 2023, Iraq’s generating capacity was around 24,000 MW, while peak demand reached approximately 34,000 MW, leading to substantial outages.
  • Corruption and Management Issues: Corruption and mismanagement further hinder efforts to improve reliability. The Ministry of Electricity struggles with financial imbalances and lacks a proper billing system, contributing to losses that are among the highest globally.

Without significant reforms and infrastructure investments, the reliability of Iraq’s power supply remains critically compromised.

 

Detailed Information

  • All figures have been converted into USD

    • Total solar panel production capacity (installed)

    Total installed solar photovoltaic (PV) capacity in Iraq was approximately 42 MW.7

    Total solar panel production capacity (projected)

    Iraq aims to achieve a total solar panel production capacity of 12 GW by 2030.8

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    9

    • Fossil fuel – 120 $/MWh
    • Solar power – 40.7 $/MWh

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    • Natural Gas: 80% 8
    • Hydropower: 17% 10
    • Solar power: 3% 11

    Average daily availability of electricity from the national grid (measured in hours)

    In the Kurdistan Region, citizens receive about 10 to 12 hours of electricity daily, with some areas like Garmiyan getting up to 13 hours.12

    In contrast, many provinces outside the Kurdistan Region experience only a few hours per day due to ongoing power outages and increasing demand.13

    Number of residential solar panel installations

    1415

    Only 500 out of the 600,000 households in the Sulaymaniyah, the second-largest city in northern Iraq’s autonomous Kurdish region, are equipped with solar panels.

    In a specific village, 17 out of 25 homes have solar panels, indicating localized interest in solar energy solutions.

    A recent initiative involves installing rooftop solar power systems on more than 500 public buildings.

    Total number of solar farms (installed and projected)

    16

    Currently, Iraq has one operational solar farm, which is the 1 GW solar power plant being developed by TotalEnergies in the Basra region. The plant should be complete by 2025 over four stages.

    Some 7.5 GW of the planned solar capacity are to come from utility-scale solar plants, and Iraq has reached agreements with developers at varying stages.

    Off-grid market demand for solar panels (current and projected)

    171819

    The demand for off-grid solar panels in Iraq is growing rapidly, driven by chronic electricity shortages and unreliable grid access, particularly in rural areas.

    A key milestone was the 2.5 MW off-grid solar PV hybrid project with battery storage launched in the Al-Fayhaa Block 9 aimed at addressing energy shortages in oil fields in 2022, highlighting the potential for further expansion.

    In remote villages, nine solar stations now guarantee daily access to running water for residents. A total of 156 m² of solar panels have been installed across 21 villages, providing solar power to 342 people and ensuring daily access to running water.

    Welthungerhilfe’s project, benefiting 14,000 returnees, also supports smallholder farmers with solar-powered irrigation, reducing costs by 70%, and provides solar-powered refrigeration to preserve fresh farm products.

    The Iraqi government has also approved initiatives to install solar systems in residential areas, aiming to ease pressure on the national grid and improve electricity access. As investment permits for solar projects are finalized, both residential and commercial sectors are expected to fuel increasing demand for off-grid solar solutions.

    On-grid market demand for solar panels (current and projected)

    8162021

    Iraq’s on-grid market for solar panels shows significant growth potential, driven by the country’s ambitious plans to install 12 GW of solar power capacity by 2030, aiming for solar to supply 33% of its electricity needs. As of late 2023, only 42 MW of solar capacity has been installed, indicating a large gap between current capacity and future goals.

    The government has already allocated 7.5 GW for various solar projects, with major developments underway, including a 1 GW solar plant scheduled to begin construction in late 2024 and connect to the grid by early 2027.

    While selling solar electricity back to the grid is not yet common in Iraq, the regulatory framework for net metering and feed-in tariffs is still being developed, which could further drive demand for solar installations in the coming years.

    Average monthly income of workers in solar industry (labor cost)

    • The average monthly salary in Iraq is approximately $1,572. 22
    • Solar Engineer: the average monthly salary is approximately $1,458. 23
    • Solar Energy Installation Manager: the average monthly salary is approximately $2,160. 24
    • Solar Photovoltaic Installer: the average monthly salary is approximately $900. 25

    Population of the country

    The current population of Iraq is 46,416,338. 26

    Average overhead costs of solar panel production (with a brief breakdown)

    Estimate for Factory Rent 27

    In Iraq, average monthly rents for industrial warehouses vary by location and size, ranging approximately $2.25–$3.30 per square meter.

    Industrial Electricity Rates 3

    The average electricity price for businesses in Iraq is approximately $0.046 per kWh for businesses as of March 2024.

    Water Costs 28

    Industrial Water Tariff in Iraq is approximately $0.076 per cubic meter for industrial and government users.

    Salaries and Wages 242526

    Monthly salaries of workers in solar industry in Ireland ranges from $2,043 to $6,397, depending on the position.

    Rent for Office Space 29

    The average monthly rent for office space in Iraq ranges approximately $5-$28 per square meter.

    Insurance 30

    The average spending per capita for non-life insurance in Iraq is estimated to be $49.48 in 2024.

    A summary of the energy infrastructure

    313233

    Energy Mix

    Iraq’s energy infrastructure is a critical component of its economy, primarily driven by its oil and gas resources. There is minimal contribution from renewable sources, though the government has expressed interest in developing solar and wind energy projects to diversify its energy portfolio.

    Key Institutions

    • Ministry of Oil: Responsible for the exploration, production, and export of oil and gas.
    • Ministry of Electricity: Oversees electricity generation and distribution.
    • Iraq National Oil Company (INOC): A state-owned enterprise that plays a significant role in oil production and management.
    • Kurdistan Regional Government (KRG): Manages oil resources in the Kurdistan region, often independently from the federal government.

    Infrastructure and Interconnections

    Iraq’s energy infrastructure includes:

    • Oil Pipelines: Extensive networks transport crude oil to export terminals, particularly in Basra. Key pipelines connect to Turkey and Jordan.
    • Gas Infrastructure: Facilities for processing and transporting natural gas are being developed, though many projects are still in progress.
    • Electricity Grid: The national grid suffers from underinvestment and frequent outages, leading to reliance on private generators. Efforts are underway to enhance capacity and reliability.

    Export / Import

    Iraq is one of the largest oil exporters globally, with most exports directed towards Asia, particularly China and India. Oil exports significantly contribute to national revenue.

    Despite having substantial oil reserves, Iraq imports refined petroleum products due to inadequate refining capacity. The country also imports electricity from neighboring countries to meet demand.

    Policy Goal

    The Iraqi government aims to achieve several policy objectives within its energy sector:

    • Diversification: Reducing reliance on oil by developing renewable energy sources.
    • Infrastructure Development: Upgrading existing infrastructure to improve efficiency and reliability in electricity supply.
    • Investment Attraction: Encouraging foreign investment in the energy sector through favorable contracts and regulatory frameworks to boost production capacity.

    Some of the government regulations surrounding solar panel production

    103435

    Electricity Law No. (53) of 2017: Encourages renewable energy adoption and regulates its activities under the Ministry of Electricity.

    Draft Renewable Energy Law: Currently in legislative process, it aims to activate renewable energy use, enhance efficiency, and promote sustainable development.

    Grid Code Development: Establishes standards for integrating solar power into the existing grid.

    Independent Power Producer (IPP) Framework: Facilitates private sector engagement in renewable projects, providing incentives and guarantees.

    Government initiatives in solar panel production (includes investments and subsidies)

    Investment Licensing: The National Investment Commission is actively granting investment licenses for solar projects to facilitate development.8

    Feed-in Tariff and Net-Metering Schemes: Designed to incentivize solar energy uptake and support local implementation. 34

    Financial Support: The Central Bank of Iraq has allocated approximately $850 million in subsidized loans for private sector investments in solar technology. 35

    Land Allocation: The government is providing land for solar projects, such as agreements with TotalEnergies for a 1 GW solar plant in Basra. 36

    Tax exemption initiatives: These include a 100% tax exemption for ten years for investments in renewable energy construction, particularly solar projects. Additionally, renewable energy developers benefit from reduced customs fees and the ability to repatriate profits without taxes under the Federal Investment Law of 2006. 37

    Notable solar projects in the country (installed and projected)

    TotalEnergies Solar Plant: A 1 GW solar power plant in Basra, set to be completed by 2025, will power approximately 350,000 homes. This project is part of a $27 billion integrated energy initiative involving oil and gas development.10

    Al-Bilal Group Projects: Two solar PV projects in Karbala and Iskandariya with a combined capacity of 525 MW are scheduled for completion in 2025. They aim to generate electricity for over 500,000 homes and involve a $500 million investment. 16

    Muthanna Solar Plant: A two-stage project with a capacity of 750 MW, developed by PowerChina. 20

    Green Hydrogen Project: A 130 MW solar facility aimed at producing 800 tonnes of green hydrogen annually. 38

    Some of the notable solar companies (plus brief details on what they do)

    2039

    TotalEnergies

    • Headquarters: Paris, France
    • Website: https://totalenergies.com
    • Details: Developing Iraq’s first utility-scale solar plant with a capacity of 1 GW in Basra, set to power 350,000 homes by 2025 as part of a $27 billion integrated energy project.

    PowerChina

    • Headquarters: Beijing, China
    • Website: https://www.powerchina.cn/
    • Details: Authorized to build a 750 MW solar project in Muthanna, focusing on renewable energy development in Iraq, aiming for 2 GW total capacity.

    Al-Bilal Group

    • Headquarters: Basra, Iraq
    • Website: https://www.albilalgroup.com/
    • Details: Secured contracts for two solar PV projects totaling 525 MW in Karbala and Iskandariya, expected to power over 500,000 homes by 2025.

    Energy House

    • Headquarters: Basra, Iraq
    • Website: https://www.energyhouseiraq.com/
    • Details: Specializes in solar panel sales and installations, with over 9,000 installations completed across the Middle East.

    Power Management Company

    • Headquarters: Erbil, Iraq
    • Website: https://power-men.com/
    • Details: Offers comprehensive renewable energy solutions including solar and wind projects, established in 2004.

    Qimam himreen company

    • Headquarters: Baghdad, Iraq
    • Website: http://www.solar.com.iq/
    • Details: Focuses on designing and installing solar energy systems for residential and commercial use.

    Sun & Sky Solar Energy

More about Iraq Solar Business

Solar News Related to Iraq

QatarEnergy, TotalEnergies Partner on 1.25 GW Solar Project

QatarEnergy, TotalEnergies Partner on 1.25 GW Solar Project

October 28, 2024

Read More
The Emirati company Masdar has begun to produce renewable solar energy in Iraq’s Anbar province.

Masdar Launches New Solar Energy Projects in Anbar Province, Iraq

June 26, 2024

Read More
See More

Our Services

Business Plan E-Course 

Learn more about our free e-Course here

Full Scale Solar Production Service

Learn more about our full scale production service here

Consulting Service

Learn more about our free consulting service here

Turnkey Service

Learn more about our free turnkey service here

Are you interested in starting your own solar module production line?

We can help you start your own solar module production company. With our 100% turnkey service, we will deliver the needed machines, do a technology transfer, provide expert and excellent support, and help you with the know-how needed to start even if you don't have any previous experience in this industry.

Start Your Own Solar Panel Production Line Today!

Find your perfect solution
>