Iraq Becomes Fifth-Largest Arab Importer Of Chinese Solar Panels In 2025

Iraq has emerged as one of the fastest-growing solar markets in the Arab region, ranking as the fifth-largest Arab importer of Chinese solar panels in 2025. According to data from Washington-based energy research group ATTAQA, Iraq’s solar imports increased sharply from 0.43 gigawatts (GW) in 2024 to 1.89 GW in 2025. This sharp rise reflects a wider regional shift, as the top ten Arab importers together expanded their solar imports to 29.07 GW over the past year.

In the region, the United Arab Emirates and Saudi Arabia remained the largest importers, with 9.54 GW and 8.82 GW, respectively. Other countries such as Egypt, Algeria, and Morocco also featured among the top buyers. However, Iraq’s rapid growth signals a major shift in its domestic energy planning as it seeks to reduce pressure on its power sector.

For years, Iraq has faced high electricity production costs and supply shortages, especially during peak summer demand. Data from the Iraqi Economic Observatory shows that electricity production costs reached 5.6 trillion Iraqi dinars in 2025. Despite these large expenditures, renewable energy still contributes only about 2% of the country’s total power generation. This gap has pushed authorities to act more aggressively in promoting solar energy.

To support adoption at the household level, the Central Bank of Iraq has introduced loan schemes of up to 30 million dinars, or about $20,400. These loans come with low or zero interest rates and minimal administrative fees, making rooftop solar systems more affordable for families. The move is expected to encourage wider use of clean energy and reduce reliance on costly traditional power sources.

On the policy side, caretaker Prime Minister Mohammed Shia’ Al-Sudani has identified renewable energy as a national priority. In recent discussions on smart energy management, he directed the allocation of land in Baghdad for solar projects. These measures are aimed at strengthening the grid ahead of the high-demand summer of 2026 and building a more stable and diversified energy system for the country.