Bangladesh’s rooftop solar expansion is heavily concentrated in the capital despite growing interest in distributed renewable energy, highlighting a pressing need for policy reforms and consumer-friendly financing.
Speakers at a dialogue on Tuesday noted that the country must address these bottlenecks if it hopes to replicate the rapid, consumer-led solar revolution seen in Pakistan.
According to a presentation titled “Solar Revolution in Pakistan: Lessons for Bangladesh from National Budget Perspective,” organised by the Centre for Policy Dialogue (CPD), about 60 per cent of Bangladesh’s 4,500 net-metered rooftop solar installations are currently located in Dhaka.
The country’s total installed rooftop solar capacity remains modest at approximately 200MW.
CPD Research Associate Atikuzzaman Shazeed reported that while rooftop solar installations grew by around 160 per cent between 2024 and 2025 – with nearly 98 per cent of net-metered systems remaining operational – the market faces significant hurdles.
These include high import duties on equipment, limited access to affordable financing, lengthy net-metering approval procedures, and institutional coordination gaps.
Drawing comparisons with neighbouring Pakistan, Muhammad Basit Ghauri, manager of Special Initiatives and China Program of Renewables First of Pakistan, explained how a consumer-led boom transformed their electricity landscape.
Pakistan imported approximately 50 gigawatts (GW) of solar panels over the last five to six years, exceeding its total installed grid capacity of 48 GW.
Ghauri noted that an estimated 28-38 GW has already been installed in Pakistan, with 98 per cent of that capacity deployed through distributed systems serving households, industries, and farms.
This transition was largely self-financed by consumers and driven by soaring electricity prices, falling global costs, duty-free imports, and favourable regulations.
To achieve similar success, Shazeed recommended that Bangladesh introduce innovative financing mechanisms, simplify net-metering regulations, and strengthen maintenance services. He also called for expanded access to the Bangladesh Bank’s green financing schemes for industries.
Asif Shahriar, senior assistant vice president of Renewable Energy at the Infrastructure Development Company Limited (IDCOL), stated that Bangladesh has set a target of adding 10,000 MW of renewable energy over the next five years.
IDCOL aims to facilitate 5,000 MW of this through rooftop solar, utility-scale projects, and solar irrigation.
Shahriar emphasised that rooftop solar should be the country’s priority pathway and stressed the importance of designing financing programmes that align with consumers’ repayment capacities.
Throughout the dialogue, speakers concluded that for Bangladesh to expand renewable energy beyond Dhaka, the government must prioritise fiscal incentives, lower taxes on solar equipment, and provide easier access to finance.
