Rooftop solar cannot be another black hole for public funds
Despite renewed government orders, Bangladesh’s rooftop solar dream risks collapsing again unless it learns from its past mistakes
On June 25, Chief Adviser Dr. Muhammad Yunus ordered the installation of solar panels on the rooftops of all government buildings. Within a week, the country's High Court delivered another landmark verdict—responding to a petition by the Bangladesh Environmental Lawyers Association (BELA), it directed that solar panels be installed on all rooftops in Dhaka.
These two decisions offer a glimmer of hope for Bangladesh, which is grappling with a severe energy crisis, foreign exchange reserves shortage, and import pressure. While the world is shifting away from costly and risky fuels like LNG and coal towards renewable energy, Bangladesh is taking the opposite route. Its national energy master plan (IEPMP) still prioritises more imports of expensive LNG and coal. As a result, despite decades of commitments and policies, renewable energy accounts for only around 3% of total electricity generation.
This is not just due to flawed policies, but also due to a lack of integrity across government agencies in implementing renewable energy projects. For example, earlier rooftop solar initiatives ended in abject failure. Public funds were wasted on flashy but hollow projects.
Now that rooftop solar is back in focus, we must ensure this initiative does not fail again. Bangladesh's interim government must learn from past mistakes and take concrete, strategic steps to make this a successful and profitable transition.
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A report published in the Desh Rupantor on 12 July noted that installing solar panels on government offices and educational institutions could save at least Tk4,000 crore and generate electricity worth over Tk25,000 crore. But if the project fails, not only will public money be wasted, but it will also violate the government's pledge to provide affordable electricity.
The magnitude of waste
In 2010, the government mandated solar panel installations on rooftops of multistoried buildings in urban areas, with a condition: no grid connection without solar power. However, the initiative turned into a massive scam involving both customers and corrupt officials of the power distribution companies.
According to a Jugantor report published on 29 November 2021, over Tk3,000 crore was wasted from 2010 to 2021 on substandard panels and equipment. With no clear regulations, hundreds of fraudulent companies imported low-quality panels and sold them at inflated prices.
From our own reporting experience, most panels installed became non-functional within days. Some couldn't light a single bulb. The consumers were defrauded, and corrupt officials colluded to cheat the government. Many consumers paid large sums but got grid connections without actual solar installations. Officials made a killing.
Data from Dhaka's DPDC and DESCO show there are 61,693 rooftop solar systems installed with a total capacity of 42 MW, costing about Tk252 crore. Due to lack of use, most of these systems have now become electronic waste.
In short, none of the solar panels installed since 2010 are still functional. Nearly Tk2,000 crore is at risk of default, including Tk1,400 crore from Infrastructure Development Company Ltd (IDCOL), now struggling to recover loans.
Corruption in the KABITA project
In 2017, using funds from the "KABITA" (Cash for Work) programme, the government launched a rural solar home system initiative. However, the project was plagued by corruption. Media reports revealed that poor-quality solar panels were installed using funds meant for the poor, leading to project failure.
Between 2017 and 2021, solar panel installation under the project involved grain allocations worth Tk2,717 crore. Of this, half—around Tk1,358 crore—was spent unnecessarily.
According to the Power Division, Bangladesh was supposed to generate at least 500 MW from renewables by 2021, with investments of Tk20,000 to Tk25,000 crore. In reality, only 100–150 MW was achieved during the time.
Net metering is the solution
After the first rooftop solar phase failed, SREDA introduced a Net Metering Guideline in 2018. This allows rooftop panels to be connected to the national grid—excess power can be sold, and when solar production falls, users can draw from the grid. Both parties benefit.
However, due to funding shortages, the implementation has been slow. According to SREDA, if properly utilised, net metering could generate up to 6,000 MW. As of now, 3,132 rooftop solar systems with 140 MW capacity have been installed under this model.
Bangladesh has paid the price of mismanaged solar projects before. This time, it must prioritise transparency, quality control, and long-term planning to ensure rooftop solar delivers on its promises—without turning into another graveyard of public funds.
Ashraful Islam Raana is a journalist.
Shah Ali Joy is a journalist.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
