Iraq Advances Residential Solar Energy Government Considers Dropping Loan Interest

Iraq Advances Residential Solar Energy: Government Considers Dropping Loan Interest

In a bold move toward sustainability and energy reform, Iraq’s Ministry of Electricity is exploring a plan to remove interest rates on loans for residential solar energy systems. The initiative is part of the government's broader campaign to support the use of renewable energy and reduce strain on the country’s overburdened electricity grid, especially during the peak summer season.

Streamlined Process for Citizens

As part of the initiative, the Ministry has launched a digital platform via the “Ur” portal, enabling Iraqi citizens to view and select from 24 authorized companies offering solar installation services. The platform allows users to compare product types, system capacity, pricing, and company offers—all in one place—before registering with the provider of their choice.

Flexible and Affordable Financing

Currently, loan interest rates range from 0.5% to 2.5%. The Central Bank of Iraq offers financing at a base rate of 0.5%, while participating banks may charge between 1.5% to 2.5% depending on loan terms. However, the government is actively evaluating a plan to completely eliminate these interest rates, making solar energy more financially accessible to the public.

To further support adoption, the loan repayment period has been extended from 5 to 7 years, with a structured and simplified payment mechanism aimed at easing the financial burden on households.

Growing Demand, Expanding Partnerships

Due to increasing demand from citizens, the Ministry has expanded its list of approved vendors from 12 to 24 companies and plans to accredit additional firms soon. This will accelerate project implementation and increase public access to reliable and sustainable energy solutions.

A Step Toward a Greener Iraq

The initiative aligns with Iraq’s long-term energy goals to diversify its power sources, stabilize its electricity supply, and foster a culture of environmental responsibility. Solar energy adoption is expected to play a significant role in reducing reliance on traditional fossil fuel-based power and lowering carbon emissions.

Citizens are encouraged to visit the “Ur” platform to explore options, evaluate offers, and register for interest-free financing once the plan is officially enacted.