Rasheed Bank launches solar energy loan program with central bank support

BAGHDAD — The state-run Rasheed Bank on Monday launched loans for the purchase of solar energy systems, with funding from the Central Bank of Iraq. The loans can reach up to 30 million dinars (about $21,300).

In a statement, the bank said the initiative supports clean energy projects and aligns with national efforts to reduce reliance on traditional power sources while promoting environmental and economic development.

The loans, available to citizens and public employees, carry a 3% interest rate and are offered through a simplified application process.

Power shortages hit Iraq every summer, especially when temperatures exceed 50 degrees Celsius (122 Fahrenheit). Despite repeated government pledges, the electricity supply continues to fall short of demand.

In March, Muhammad Sahib Al-Daraji, an adviser to the prime minister, said Iraq’s electricity crisis stems from mismanagement and a focus on high-commission generation contracts rather than strengthening distribution and transmission.

“The real solution to supplying homes with electricity is relying on solar energy systems,” he said. “I have implemented them in my home, and they have been successful. Their cost is lower than that of private generator fees and cheaper than the national electricity bill as well.”