Tk370cr allocated for rooftop solar panels at local govt institutions: State minister

The government has allocated Tk 370 crore for installing rooftop solar panels at offices, agencies and institutions under the Local Government Division, aiming to generate around 300 megawatts (MW) of electricity, State Minister for Local Government, Rural Development and Cooperatives Mir Shahe Alam said today (23 September).

"We are going to generate electricity through solar panels on the rooftops of these 6,544 institutions," he said at a press conference held at Secretariat.

The state minister said solar panels would be installed on the rooftops of 6,544 institutions, including local government offices, municipalities, union parishads, LGED offices, Wasa facilities, public health engineering offices and haat-bazars or growth centres across the country.

Funds have already been released from a special allocation and separate instructions have been issued to the institutions concerned, he said adding the programme is expected to be implemented by 27 January.

A standard calculation prepared in consultation with solar panel installation companies shows that installing a system capable of generating 5.5 kilowatts of electricity would cost around Tk3.26 lakh.

Of the electricity generated, around 150 MW will be consumed by the local government institutions themselves, while the remaining 150 MW will be supplied to the national grid through net metering under the government's renewable energy programme.

The additional electricity will be sold at Tk10.50 per unit, he said.

Meanwhile, revenue generated from selling surplus electricity could recover the investment within three to four years.

After that, the local government institutions would have an additional source of regular income, he added.

The rooftop solar systems would help ensure a reliable power supply, particularly during office hours, reducing the impact of load-shedding and other power disruptions, said Mir Shahe Alam.

Under the renewable energy policy, solar panels will be installed by companies listed by the Power Division, including Walton, PRAN-RFL, Grameen Shakti and other enlisted firms, said the state minister.

The local government institutions will sign 20-year agreements with the companies under which the companies will provide free servicing and warranty for the solar systems for 20 years, the state minister said.

The companies would be responsible for monitoring and maintenance and would address any technical problems during the contract period, he said.

He said city corporations have been allocated Tk75 crore, upazila parishads Tk99 crore, municipalities Tk64 crore and district councils more than Tk12 crore for the rooftop solar initiative.

The minister said the money could otherwise have been spent on small-scale development projects such as roads, bridges and drains, but the government considers investment in electricity generation to be another form of development.