Dhaka:Government incentives, tax exemptions, and policy support are driving the expansion of solar power in Bangladesh, encouraging investments in rooftop solar systems by households, businesses, and public institutions. These entities can now supply surplus electricity to the national grid, contributing to the country's renewable energy goals.
According to Bangladesh Sangbad Sangstha, the government is implementing measures to lower installation costs, facilitate financing, and promote renewable energy generation. This initiative aims at diversifying the energy mix and reducing reliance on fossil fuels.
Individual projects exemplify the benefits of these policies. Engineer Md Akhtaruzzaman installed a rooftop solar system at his business, Saleha Oil Mill, in Magura Sadar Upazila. The system, operational since December 2023, comprises nine panels with a total capacity of 5.23 kilowatts and cost Taka 184,000. Through net metering, he supplies an average of 550 units monthly to the national grid, earning Taka 6,000-7,000.
Sabbir Hossain from Chakgopal village in Naogaon, installed seven solar panels with a capacity of 585 watts each, costing around Taka 173,000. His system powers household appliances and a water pump, significantly reducing his electricity bill. However, without net metering approval, he cannot supply surplus electricity to the grid.
The Sustainable and Renewable Energy Development Authority reports an increase in grid-connected solar power capacity from 1,020 megawatts in January to 1,283 megawatts by early November. To accelerate growth, the government allocated Taka 1,500 crore for financing and plans to add 3,000-4,000 megawatts of solar power to the grid before next summer.
The government will purchase surplus electricity supplied through net metering at Taka 10.50 per unit until 2030. The National Board of Revenue has reduced import taxes on solar equipment to one percent from 17 percent.
The Special Solar Power Installation Ordinance, 2026, issued on October 19, permits solar projects up to five megawatts on rooftops, courtyards, and other specified locations. The ordinance introduces financing under the OPEX model and outlines penalties for solar installation infractions.
The government aims for renewable sources to provide 20 percent of electricity by 2030, with a draft plan to add 10,450 megawatts of renewable capacity, including from rooftop and ground-mounted projects.
At the Solar Expo, Prime Minister Tarique Rahman sought support from development partners for renewable energy advancement, emphasizing the need for financing and technological cooperation.
Energy expert Shahriar Ahmed Chowdhury praised the reduction in import duties but highlighted the need for local market tax reductions and incentives for broader adoption of solar technology.
Experts emphasize the importance of effectively implementing government incentives and policies, alongside improving net metering approvals and finance access, to harness Bangladesh's solar power potential.