Dhaka: Around 918 megawatts (MW) of grid-connected solar power from the private sector is expected to be added to the national grid by 2028 as the government intensifies efforts to expand renewable energy generation and reduce reliance on imported fossil fuels. The Bangladesh Power Development Board (BPDB) has signed agreements with 12 independent power producers (IPPs) to generate 918MW of solar electricity at Tk 9.12 per kilowatt-hour, according to officials.
According to Bangladesh Sangbad Sangstha, the agreed tariff is approximately 2.5 cents lower than the cost of similar projects contracted previously. The government has also announced a special incentive package to encourage the installation of rooftop solar systems with battery storage as part of its renewable energy expansion drive. Under this incentive scheme, the maximum generation cost for electricity from rooftop solar systems with batteries has been set at Tk 8 per unit. A 20 percent profit margin and an 11.25 percent premium have been added to the generation cost, setting the electricity price at Tk 10.50 per unit.
The Sustainable and Renewable Energy Development Authority (SREDA) reports that Bangladesh currently has 1,852.06MW of solar generation capacity, with 1,473.5MW connected to the national grid and 378.56MW remaining off-grid. The BPDB has also initiated projects totaling 689MW of grid-connected solar capacity using its own financing, expected to be operational by 2030.
Confidence Power Rangpur Vice Chairman Imran Karim mentioned to BSS that his company is working on three solar power projects with a combined generation capacity of 400MW, all expected to be operational by 2028. The BPDB has disclosed that the largest of the 12 contracted projects, with a capacity of 200MW, will be established at Fatikchhari in Chattogram, with a 150MW plant planned for Ishwardi in Pabna.
Additional projects include two 100MW plants in Cox's Bazar, a 100MW solar plant at Mongla in Bagerhat, and a 70MW plant at Ishwardi. Other locations for the remaining projects include Bibiana of Moulvibazar, Joldhaka of Nilphamari, Fatikchhari of Chattogram, Moulvibazar Sadar, Hathazari of Chattogram, and Sudharam of Noakhali, with capacities ranging from 10MW to 50MW.
BPDB Chairman Engineer Rezaul Karim stated that the agreements with the IPPs are part of a broader strategy to enhance renewable energy generation and decrease dependency on conventional fossil fuels, particularly imported ones. He noted that the BPDB has prepared a project proposal for a 442MW solar power project at Rampal and that a feasibility study has been conducted by the Infrastructure Investment Facilitation Company (IIFC) for a 222MW grid-connected solar photovoltaic plant in Sonagazi, Feni, targeted for completion by 2028.
The BPDB has installed 688 kilowatt-peak (kWp) of rooftop solar capacity using its own finances between November 2025 and September 12, 2026, with an additional 4,195kWp expected to be operational by December this year. The BPDB had also invited tenders two years ago for installing 17 solar projects on its own buildings and land using its own financing.
Hasan Mehedi, Chief Executive of Coastal Livelihood and Environmental Action Network (CLEAN) and an energy expert, highlighted that rooftop solar and other renewable energy projects could substantially reduce Bangladesh's dependence on imported fuel. The government has instructed all deputy commissioners' (DCs) offices nationwide to install solar panels within the next three months as part of the renewable energy drive.
Prime Minister Tarique Rahman informed parliament on September 9 that Bangladesh aims to generate at least 20 percent of its total electricity from renewable sources by 2030 and 30 percent by 2040, aiming to reduce reliance on imported fuels and meet growing electricity demand through renewable energy. Under the National Renewable Energy Development Strategy for 2026-2030, the country plans to generate 5,500MW from ground-mounted solar projects by 2030, with an additional 450 MW to 550 MW targeted from wind, waste-to-energy, hydropower, floating solar, and agrivoltaics, among other technologies.
Mehedi suggested that encouraging household rooftop solar installations could reduce the need for government investment.