The government has allocated 370 crore taka to install rooftop solar panels at 6,544 offices and institutions under the Local Government Division, targeting electricity generation of around 300 megawatts (MW), State Minister for Local Government, Rural Development and Cooperatives Mir Shahe Alam said on Wednesday.

The state minister said the solar panels would be installed at local government offices, municipalities, union parishads, LGED offices, WASA facilities, public health engineering offices and haat-bazars or growth centres across the country, at a press conference at the Secretariat.

Funds have already been released under a special allocation, and separate instructions have been issued to the institutions concerned, he said. The programme is expected to be completed by January 27.

According to a standard calculation prepared in consultation with solar panel installation companies, a system capable of generating 5.5 kilowatts of electricity would cost around 3.26 lakh taka.

Of the estimated 300 MW generated, local government institutions would consume around 150 MW, while the remaining 150 MW would be supplied to the national grid through net metering under the government's renewable energy programme.

The surplus electricity would be sold at 10.50 taka per unit, he said.

Revenue from the sale of surplus electricity is expected to recover the initial investment within three to four years. After that, the local government institutions would have an additional source of regular income, he added.

Mir Shahe Alam said the rooftop solar systems would also help ensure a more reliable power supply during office hours and reduce the impact of load-shedding and other power disruptions.

Under the renewable energy policy, solar panels will be installed by companies listed by the Power Division, including Walton, PRAN-RFL, Grameen Shakti and other enlisted firms, the state minister said.

The local government institutions will sign 20-year agreements with the companies. Under the agreements, the companies will provide servicing and warranty support for the solar systems throughout the contract period.

The companies will also be responsible for monitoring and maintenance and addressing technical problems during the 20-year period, he said.

Mir Shahe Alam said city corporations had been allocated 75 crore taka, upazila parishads 99 crore taka, municipalities 64 crore taka and district councils more than 12 crore taka for the rooftop solar initiative.

The state minister said the money could otherwise have been spent on small-scale development projects such as roads, bridges and drains. However, he said the government considers investment in electricity generation to be another form of development.