Iraq is facing multiple challenges for harnessing the indigenous energy resources and devising rational energy policy. The recent dramatic fall of oil prices, Iraq’s economic and political shambles, the corona virus (COVID-19) epidemic and the huge expected deficit in the 2020 federal budget are making the task of tackling the electricity shortage more challenging than ever. This paper analyses the country’s solar energy policy and addresses the barriers for developing the renewable energy system in light of the country’s recent turmoil.