The government of Iraq has decided to eliminate customs duties on solar energy systems imported into the country.

According to reports from the Iraqi News Agency (INA), the country’s Council of Ministers decided on the measure “to support the transition toward renewable energy sources and reduce the costs associated with acquiring such systems”.

The removal of customs duties follows a formal proposal submitted by Iraq’s Electricity Minister, Ali Saadi Waheeb, to the Prime Minister last month, which requested a reduction in customs duties on solar energy systems.

The rate was originally as high as 33% but was reduced to 5% in February this year with the reduction covering PV panels, cables, inverters and lithium batteries. It followed a move by Iraq’s Central Bank earlier in the month to grant loans worth IQD 6 billion ($4.6 million) for solar energy systems.

INA’s latest update adds that the Ministry of Electricity has completed a draft set of regulations that will govern the connection of solar systems to Iraq’s national grid.

The news agency explained the regulations, comprising 40 articles, are designed to “establish mechanisms for grid interconnection and the exchange of electrical energy between citizens and the national network.” They will also permit citizens to connect their solar systems to the national grid by using smart meters.

The ministry says it has reached out to Iraq’s State Council to finalise the legal drafting of the regulations. It will then be submitted to the country’s Council of Ministers for formal approval.

Iraq’s solar market is gaining momentum, with its first solar module production line , located in the Karbala governorate of central Iraq, reaching inauguration in July.

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