Bangladesh Eyes Solar Push for More Secure Energy Future
Bangladesh is turning to rooftop solar and private investment to reduce its dependence on imported energy. The government is setting ambitious renewable energy targets and introducing incentives to accelerate the transition.
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In a Nutshell
- Prime Minister Tarique Rahman inaugurated the country's first-ever Bangladesh Solar Expo 2026 on 3 November at the Bangladesh-China Friendship Conference Centre in Dhaka.
- The government aims to generate 20% of the country's electricity from renewable sources by 2030 and 30% by 2040, with a target of adding 3,000-4,000 MW of solar power to the national grid before the next summer.
- An initial Tk 1,500 crore fund has been allocated to support solar expansion. The government has also introduced the Special Solar Power Installation Ordinance 2026, alongside tax and tariff incentives to encourage investment in the sector.
- Under the proposed net-metering incentives, surplus electricity generated by rooftop solar systems will be purchased by the government at Tk 10.50 per unit by February 2027.
- The OpEx model will also allow third-party companies to install solar panels on institutional rooftops without requiring an initial investment from the institutions.
- To address energy supply challenges caused by dependence on imported fuel, the government provided Tk 43,000 crore in power-sector subsidies in FY2025-2026.
Context
Bangladesh’s dependence on imported fuel has left its energy sector vulnerable to disruptions from global conflicts and supply chain disruptions. The government allocated Tk 43,000 crore in power-sector subsidies in the 2025-2026 financial year to help maintain fuel and electricity supplies. Addressing the crisis, Prime Minister Tarique Rahman said, “Instead of wasting time discussing and criticising the failures or roles of past governments in ensuring fuel security and electricity production, I think how the demand for electricity can be met in the coming days is the priority of the present government.”
The two-day expo, jointly organised by the Power Division, the Ministry of Power, Energy and Mineral Resources, and IDCOL, also highlights the operational expenditure (OpEx) model. Under this arrangement, third-party companies install solar panels on institutional rooftops without requiring the institutions to make an upfront investment, making solar adoption more accessible.
Why It Matters
Rooftop solar offers Bangladesh a way to diversify its electricity sources while reducing dependence on imported fuel. Schools, hospitals, factories, offices and households can use existing rooftop spaces to generate electricity and ease pressure on the national grid.
Solar-powered irrigation can also reduce farmers’ reliance on grid electricity for water pumps. The government has announced plans to convert electric irrigation pumps in the Barind region to solar-powered systems, including 17,000 pumps. However, wider adoption depends on more than installation targets. Affordable equipment, accessible financing, regular maintenance and the grid’s capacity to accommodate additional solar power will all influence how far the expansion can go.
What We Think
Bangladesh’s energy crisis has exposed the risks of relying heavily on imported fuel. Expanding solar power can help reduce that dependence, but ambitious targets alone cannot guarantee energy security. The proposed incentives and financing arrangements create opportunities for businesses and households to participate in the transition. However, their effectiveness depends on accessible financing, reliable installation services, regular maintenance and the national grid’s capacity to accommodate additional electricity.
As the Prime Minister stated, “Producing more electricity is not the only goal; reducing the cost of electricity for public use is also a priority of the government.” Ultimately, the success of Bangladesh’s solar ambitions will depend not simply on how many panels are installed, but on how much affordable and reliable electricity they deliver.