Install Rooftop Solar by 2027 and Earn Tk10.50 Per Unit
The government is offering households Tk10.50 for every unit of surplus rooftop solar electricity they supply to the national grid, if they install qualifying systems by February 28, 2027. The move aims to accelerate household adoption and add electricity to the grid as Bangladesh tries to reduce its reliance on costly emergency LNG imports amid a national gas crisis.
In a Nutshell
- The government will pay Tk10.50 per unit for surplus electricity supplied to the grid from qualifying rooftop solar systems with battery storage.
- The incentive applies only to systems installed by February 28, 2027, and will remain available for three years until February 28, 2030.
- The Tk10.50 rate is based on a Tk8 generation cost, with 20% profit and an 11.25% premium added.
- Bangladesh currently has only 4,551 net metered rooftop solar installations with 213.3MW capacity, while the government has raised its 2030 target from 3,000MW to 5,500MW.
- DREP estimates 10% household adoption could add 8,600MW by 2030, while moderate adoption could reach 21,300MW and meet up to 35% of national electricity demand.
- The rooftop solar market could generate US$1.97 billion in demand for panels, inverters, batteries and other equipment by 2030.
Context
The rooftop solar push comes as Bangladesh is struggling to secure enough gas for power generation and industry. Qatar, Bangladesh's key LNG supplier, has suspended shipments beyond September after damage to its Ras Laffan facility, forcing Dhaka to rely more heavily on expensive spot market cargoes.
The disruption has added pressure to electricity supply, increased loadshedding and affected industrial production. Qatar's repairs could take three to five years, leaving Bangladesh with a gas supply problem that cannot be solved simply by waiting for regular LNG shipments to return.
That makes rooftop solar more relevant as a near term option. Instead of waiting for imported gas or new large power projects, the government can encourage households to add generation through existing rooftops. The February 2027 deadline shows the government wants households to install rooftop solar as soon as possible and start adding surplus electricity to the national grid.
Why It Matters
Bangladesh has a large untapped rooftop solar market. Of 40.3 million households, 35.6 million live in homes they own, but only 4,551 net metered systems are currently installed, with 213.3MW capacity. DREP estimates the market for rooftop solar equipment could reach nearly US$1.97 billion by 2030.
The potential for electricity generation is also significant. Households accounted for 57.2% of electricity consumption in 2024 to 25. If 10% of households adopt rooftop solar, DREP estimates it could generate 13,937GWh a year, meeting around 15% of current demand. Wider adoption could push capacity to 21,300MW and meet up to 35% of demand.
The problem is getting households to make the investment in the first place. Residential systems cost Tk80,000 to Tk250,000 or more, while only 21% of citizens believe solar is economically beneficial and 28% question its durability.
High equipment costs, limited access to credit, utility approval delays and complex net metering procedures are also slowing adoption.
CPD has proposed a unified digital application system and easier net metering, while industry groups want dedicated lending, pay as you save financing and zero duty on panels and LFP batteries.
What We Think
The Tk10.50 tariff provides a strong incentive for households to adopt rooftop solar before 2027, offering a much-needed buffer against Bangladesh's expensive gas and LNG shortages. However, capitalizing on this $1.97 billion market opportunity to meet the ambitious 5,500MW target by 2030 will depend heavily on resolving existing financing and approval hurdles. Ultimately, this policy will test whether better financial returns can successfully scale the country's solar generation beyond its currently small base.