Govt to introduce new policy to boost rooftop solar expansion by June

The government is set to introduce a new policy framework by June to accelerate rooftop solar expansion and attract private investment in renewable energy, as Bangladesh seeks to reduce its dependence on fossil fuel-based electricity generation.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku today (7 May) said Bangladesh is still lagging behind in renewable energy adoption, while neighbouring countries such as India and Pakistan have significantly expanded solar and wind power to ease pressure on fossil fuel-based generation.

Speaking as the chief guest at the inauguration of the "Power, Energy and Infrastructure Expo" at Bangladesh-China Friendship Conference Center, the minister said the government is now prioritising renewable energy, particularly solar and wind power, under directives from Prime Minister Tarique Rahman.

"Bangladesh is now ready to move forward in solar power. The biggest challenge is policy support," he said.

According to the minister, a new policy may be issued by next June to make solar power more accessible to households and businesses. 

He said the policy framework has largely been finalised following meetings of the committee.

Tuku said the country failed to expand solar power as expected in past years due to weak planning and lack of leadership, but the current government aims to create an enabling environment for rapid renewable energy growth.

"A committee has been formed under the prime minister's instructions to fast-track renewable energy policy, while the government also plans phased solar panel installation in residential buildings across Dhaka to ease rising electricity demand," he added.

Tuku said the government is preparing a simplified and effective framework for importing solar equipment such as photovoltaic panels, inverters and mounting frames so that entrepreneurs can easily install solar systems.

He also stressed the importance of battery energy storage systems to support the electricity supply during evening peak hours.

"Electricity generation during daytime alone is not enough. Battery storage is crucial to meet peak-hour demand in the evening," he said.

The minister added that the government is considering policy incentives to reduce the tax burden on entrepreneurs and make solar projects financially viable.

Drawing a comparison with the ready-made garment industry, he said supportive policies such as bonded warehouse facilities and back-to-back letters of credit introduced during the 1980s played a transformative role in the sector's growth.

"Similarly, if supportive policies are provided for the solar sector, this industry can expand rapidly," he said.

The minister said the government is working to generate 10,000MW of renewable electricity over the next five years.

He also outlined plans to utilise the rooftops of buildings in Dhaka and other cities for distributed solar power generation through private investment.

"Under the proposed mechanism, private entrepreneurs will be able to install rooftop solar systems and supply electricity directly to building owners. Bills will be adjusted through net metering at the end of each month, while building owners will receive a share of the revenue. This will make the sector profitable for entrepreneurs and significantly reduce electricity pressure in the capital," he added.