Govt eyes 4,000MW from rooftop solar in one year

Infographics: TBS

The government is opening up Bangladesh's rooftop solar market to private investment, aiming to install up to 4,000MW of rooftop systems within one year as it seeks to rapidly expand renewable power generation.

The move is part of a broader plan to generate 20% of the country's electricity, or 5,500MW, from renewable sources by 2030, according to minutes of a Power Division meeting held on 19 August.

At a separate meeting with private solar companies on 25 August, the Power Division asked the industry for suggestions on how to achieve the 4,000MW rooftop solar target as quickly as possible.

The government has also indicated that it may offer special incentives during the first six months to make the business attractive to private investors, according to a senior official of a solar company who attended the meeting.

"Those who complete solar installations within the next six months will be eligible to sell their surplus electricity to the government at a lucrative price. Detailed guidelines on this matter will be issued soon in the form of a circular," he told TBS.

Unlike conventional government-funded solar projects, the rooftop programme will follow an operating expenditure, or OPEX, model. Private investors will finance, install, operate and maintain the systems at government and private establishments, while consumers will use the electricity generated.

The government will enlist private companies as "service providers" to develop solar packages for households, businesses and industrial establishments under the new model.

The model could allow factories, offices and other property owners to effectively rent out their rooftops to solar investors without making the upfront investment themselves.

Private sector solar installation firms said this coordinated government initiative is a timely and positive step towards rapidly expanding rooftop solar in Bangladesh and increasing renewable-energy investment in the industrial sector.

Tofael Ahmed, chief executive of Superstar Renewables, welcomed the plan, saying the appointment of service providers across the country would be important for maintaining quality as rooftop solar expands.

But he said consumers would only be willing to switch if solar electricity was easier and cheaper than power from the national grid.

"To achieve the 4,000MW target, it will be crucial to ensure the bankability of OPEX projects, easy and fast access to low-cost financing, a clear and attractive tariff mechanism for purchasing surplus electricity, and swift, one-stop approval for net metering," said Masudur Rahim, chief executive officer of Omera Solar.

At the same time, he said a transparent accreditation mechanism will be needed for selecting district-based service providers and ensuring quality.

"We believe that if these issues are finalised quickly and a predictable policy framework and streamlined implementation process are put in place, private-sector investment will increase significantly, making the ambitious 4,000MW target a realistic one," Rahim told TBS.

The private companies also raised concerns about the proposed business model at the meeting, including the duty structure for imported solar equipment. They also sought clarity over wheeling charges for merchant power plants and the risks investors could face if a factory hosting a solar system under the OPEX model shuts down for various reasons.

The push for rooftop solar comes as Bangladesh faces a severe energy crisis, with gas shortages restricting industrial production and electricity supply remaining under pressure. The conflict in the Middle East has further complicated the country's energy situation.

Three models proposed

The Power Division has proposed three rooftop solar models.

Under the first, customers will consume all the electricity generated by the system, operating on an off-grid basis.

Under the second, customers will use the electricity they need and supply the surplus to the national grid, without paying rent for the rooftop.

Under the third, customers will consume part of the electricity while the surplus is supplied to the grid. The property owner will receive rent for allowing the solar system to be installed on the rooftop.

The third model would enable companies to install solar systems on factories, offices and other buildings without requiring owners to provide the upfront capital.

Service providers will also be allowed to develop packages for solar irrigation, solar-powered cold storage, electric-vehicle charging stations, floating solar and other renewable-energy technologies, according to the government's plan.

Net-metering rules to be eased

The government also plans to amend the Net Metering Guideline 2025 to facilitate larger rooftop systems, power division officials said.

Under the proposed change, consumers will be allowed to install systems of up to 100kW even when the solar capacity exceeds their sanctioned electricity load, subject to approval from the relevant distribution office. The government expects the change to encourage more consumers to install larger systems and feed surplus electricity into the grid.

The initiative follows the Cabinet's approval of the Renewable Energy Development Strategy 2026–2030 on 12 July.

The strategy envisages 5,500MW of rooftop solar and another 4,500MW of ground-mounted solar, alongside wind, waste-to-energy and other renewable technologies, to meet the target of generating 20% of electricity from renewable sources by 2030.

Service providers to be selected by area

Private service providers will be selected by geographical area through the electricity distribution companies.

Dhaka Electric Supply Company (Desco) will cover its service areas in Dhaka, while Dhaka Power Distribution Company (DPDC) will handle its own areas. The Rural Electrification Board will cover most of the rest of Dhaka Division and Rangpur.

Bangladesh Power Development Board will oversee Chattogram, Mymensingh and Sylhet divisions; Northern Electricity Supply Company will cover Rajshahi; and West Zone Power Distribution Company will cover Khulna and Barishal.

The distribution companies began enlisting service providers yesterday.

Evaluation committees will include representatives from the relevant distribution companies, Power Grid Bangladesh and the National Load Dispatch Centre.

Local firms get an advantage

The selection system gives a strong advantage to companies operating in the districts where they seek to provide services.

A company, or its lead partner, operating in the same district will receive 40 points. Applicants based in an adjacent district, the same division or another division will receive 25, 15 and 10 points, respectively.

Applicants will receive five points for registration with Sreda or Idcol and up to 30 points for relevant experience.

The scoring system also gives 15 points to start-ups and new entrepreneurs and 10 points to women-owned sole proprietorships, in an effort to encourage young entrepreneurs and greater participation by women in the renewable-energy sector.

Low entry barrier

Applicants must have a valid trade licence, TIN, updated tax certificate and a bank solvency certificate of at least Tk10 lakh.

They must also have experience installing at least a 2kW solar system. Both on-grid and off-grid experience will qualify.

Companies can apply individually or form joint ventures.

The list of selected service providers will remain valid until 31 December 2028, although authorities can remove a provider if allegations against it are proven. Applicants will pay Tk500 for the application and Tk5,000 for final registration.