Rooftop solar boost: Govt promises Tk10.50 per unit for surplus power
The incentive is part of a broader plan to generate 5,500MW from renewables by 2030.
The government has launched a new incentive scheme offering rooftop solar producers a guaranteed rate of Tk10.50 per kilowatt-hour for feeding surplus power into the national grid, bolstering efforts to expand renewable energy generation and stabilise national power supply.
Formally announced through a gazette notification issued today (1 September), the initiative aims to add up to 4,000 MW of rooftop solar capacity within one year to strengthen national energy security through diversification.
The price was determined taking the cost of batteries in consideration if used in the rooftop solar system.
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"Considering market prices and quotations received by the Power Division, the government has estimated the maximum generation cost of rooftop solar power systems with batteries at Tk8 per unit," Power Division said in the circular, adding that under the special incentive, a 20% profit and an 11.25% premium will be added to the generation cost, bringing the applicable price to Tk10.50 per unit.
If a customer can install such a solar power system at a cost lower than the stipulated generation cost, the amount will be considered the customer's dividend.
The gazette came into effect yesterday.
Eligibility and timeframe
Customers who install rooftop solar systems by 28 February 2027 and supply surplus electricity to the national grid after meeting their own consumption will receive Tk10.50 per unit.
The price will be applicable for the next three years, until 28 February 2030.
The incentive will not apply to solar systems installed after 28 February 2027.
Payment and governance
Electricity distribution companies will maintain customer information, determine the amount of electricity supplied to the national grid, and preserve records related to electricity prices, including the incentive.
The incentive payments will be transferred to customers through bank accounts or mobile financial services and cannot be paid in cash under any circumstances.
Solar panels, batteries, inverters, meters and other equipment used for installing the systems must comply with the technical standards set by the Bangladesh Standards and Testing Institution (BSTI) and the Sustainable and Renewable Energy Development Authority (Sreda).
Policy support for the programme will be provided through the one-stop service centre already established by the Power Division. Customers will also be able to receive assistance from district- and upazila-level offices of the electricity distribution companies.
Experts welcomed the move with some observations.
"Announcing an attractive tariff for supplying surplus electricity from rooftop solar systems to the grid is a positive initiative. However, tariff incentives alone will not ensure the success of this programme. The local grid and distribution feeders must have adequate capacity to absorb the additional electricity," said Sakir Ahmed, a power sector professional.
He also warned that when grid electricity is unavailable during the daytime, conventional grid-tied solar systems cannot feed electricity into the grid, necessitating the use of energy storage systems.
The incentive scheme 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.
