Bangladesh rooftop solar: Essential expansion urged in crisis

Bangladesh is confronting a deepening energy paradox, where a substantial installed capacity of 28,000-29,000 MW is critically underutilized due to a weak national grid, costly fuel imports, and idle power plants. This precarious situation has prompted urgent calls from industry leaders, including the Dhaka Chamber of Commerce and Industry (DCCI), to accelerate the adoption of rooftop solar power as a strategic imperative to avert a looming crisis, with experts warning of potential energy shortages by 2029.

The push for decentralized solar generation aims to build resilience and alleviate pressure on the strained national infrastructure. The government has already laid some groundwork with its National Rooftop Solar Program, which targets implementation across 520 upazilas. However, progress is being significantly hampered by major policy hurdles. While solar panels and inverters carry a minimal 1% import duty, associated essential components are subject to crippling tariffs ranging from 50-60%, creating a formidable financial barrier for new installations and stalling the sector’s growth.

The economic consequences of inaction are severe. The DCCI warns the ongoing energy instability could inflict an additional burden of Tk610 billion on the economy. Small and medium-sized enterprises (SMEs), which form the country’s economic backbone, are disproportionately affected, with 45% identifying the energy shortage as their primary operational challenge. Widespread load-shedding, particularly in rural regions, further disrupts both daily life and commercial activity, highlighting the urgent need for a diversified and stable energy supply.

In response, a multi-faceted strategy is being advocated. Beyond the crucial expansion of rooftop solar, proposals include securing energy through government-to-government (G2G) agreements and negotiating deferred payment terms to ease the financial strain of fuel imports. Further recommendations involve a comprehensive overhaul of the existing infrastructure, from repairing aging gas pipelines and conducting energy audits to expanding LNG capacity with a third floating regasification unit. At the same time, maximizing output from existing coal-fired plants and fast-tracking plans to import hydropower from Nepal and Bhutan are seen as vital complementary measures. Together, these initiatives represent a comprehensive roadmap to navigate the current shocks and build a more secure, sustainable energy future for Bangladesh.

Sources for Bangladesh rooftop solar: Essential expansion urged in crisis

1. Reviving Rooftop Solar Programmes in Bangladesh
2. 50–60% duties stall Bangladesh’s renewable energy growth: BSREA
3. Bangladesh Energy Crisis Context and Rooftop Solar Policy
4. Analysis of Bangladesh’s Underutilized Power Capacity
5. AmCham Subcommittee Meeting on Bangladesh Energy Sector
6. Bangladesh needs predictable policies to attract power sector investment
7. Economic Analysis of Bangladesh’s Power Sector Challenges
8. Regional Hydropower Potential for Bangladesh
9. Investment development requires friendly policy: DCCI president