Rooftop solar emerges as key solution to Bangladesh power crisis
Bangladesh is looking to its rooftops as a viable solution to a persistent power crisis, aiming to transform idle building surfaces into a distributed network of solar power plants. As the nation grapples with a high reliance on expensive, subsidized electricity, experts argue that rooftop solar offers a cost-effective alternative that could alleviate the burden on the national grid while providing cheaper, more reliable energy to consumers.
According to a survey by the Netherlands-based firm Neo BV, commissioned by the World Bank, there is significant untapped potential in urban centers. By utilizing rooftops across Dhaka, Gazipur, and Narayanganj, it is estimated that over 10,000 megawatts of electricity could be generated. Even if only half of the identified residential, commercial, and industrial buildings were utilized, the output would exceed 5,000 megawatts, representing a substantial shift in the country’s energy landscape.
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The private sector is already moving in this direction. Major industrial groups like Pran-RFL and Akij Bashir Group have begun integrating solar arrays into their facilities. For many of these firms, the cost of generating a unit of solar electricity is significantly lower than grid prices, ranging between 4 and 6 taka. By incorporating battery storage, some factories have managed to achieve complete energy autonomy, insulating themselves from the volatility and rising costs of traditional power sources.
State-owned financial institution IDCOL has been instrumental in funding this transition, providing low-interest loans backed by international development partners, including the World Bank and German agencies. IDCOL data indicates that rooftop solar is far more land-efficient and cost-effective than large-scale land-based solar projects, with capital costs estimated to be significantly lower. Currently, over 300 megawatts are already being generated from rooftops, with plans to finance 5,000 megawatts over the next five years.
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Despite the momentum, bureaucratic and fiscal hurdles remain. While the government has recently moved to remove import duties on essential solar equipment—potentially reducing installation costs by 25 to 30 percent—industry associations, such as the Bangladesh Sustainable and Renewable Energy Association (BSREA), argue that these incentives are currently too narrow. Concerns have been raised that the tax benefits primarily favor large-scale industrial projects, leaving out residential, agricultural, and small-scale commercial users who make up the majority of the country’s power consumers.
Furthermore, industry experts point to long delays in grid-connection approvals as a bottleneck. While policies suggest that rooftop systems should be integrated into the national grid within 15 days, the actual process often takes months, discouraging smaller investors. Observers cite the examples of India, Vietnam, and Pakistan, where aggressive, universal incentive structures—including subsidies for households and streamlined net-metering processes—have triggered a solar revolution.
Educational institutions are also emerging as key players in this transition. Universities like the Bangladesh University of Engineering and Technology (BUET) and BRAC University have already successfully installed rooftop systems, reducing their operational costs and supplying excess power back to the grid. Energy analysts emphasize that if the current fiscal barriers are removed and the approval process is simplified, rooftop solar could fundamentally reshape Bangladesh’s energy future, turning consumers into energy producers and ensuring long-term sustainability.
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