Iraq Introduces Low-Interest Loans for Solar Panel Installations

Iraq’s Central Bank has announced a new initiative offering low-interest loans to individuals and businesses for installing solar panels, Rudaw reported. This move aims to promote renewable energy and reduce emissions. According to the guidelines, banks will receive an initial advance of 300 million Iraqi dinars (approximately $207,000) from the Central Bank, with additional funds contingent upon proof of loan disbursement.

Loans will range from seven million to 30 million dinars (around $4,800 to $20,700) and will be repayable over seven years, with a possible six-month extension. The Central Bank will charge banks an interest rate of 0.5%, while banks can charge borrowers no more than 2.5%.

Applications can be submitted via the tamwil.iq platform or other approved electronic means. This initiative is part of Iraq’s broader strategy to diversify its energy sources and address chronic electricity shortages, particularly during the extreme summer heat. Recent agreements with American firms further underscore the country’s commitment to enhancing its energy sector.