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.