Government incentives, tax exemptions and policy support are creating fresh momentum for solar power expansion in Bangladesh, encouraging households, businesses and public institutions to invest in rooftop solar systems and supply surplus electricity to the national grid.

The government is pursuing measures to reduce installation costs, facilitate financing and expand renewable energy generation as part of its efforts to diversify the country’s energy mix and reduce dependence on fossil fuels.

The benefits are already visible in individual initiatives. Engineer Md Akhtaruzzaman, from Kechuadubi village in Magura Sadar Upazila, installed a rooftop solar system at his business, Saleha Oil Mill, to meet its electricity requirements.

The system, which began generating electricity in December 2023, comprises nine panels with a combined capacity of 5.23 kilowatts and cost him Taka 184,000.

Through net metering, Akhtaruzzaman uses part of the electricity generated and supplies the surplus to the national grid. He said he is supplying an average of 550 units monthly to the national grid, earning Taka 6,000-7,000.

He plans to expand the system but said limited access to financing, particularly for individual consumers, remains a major obstacle.

Similarly, Sabbir Hossain of Chakgopal village in Niamatpur, Naogaon, installed seven solar panels, each with a capacity of 585 watts, at a cost of around Taka 173,000.

His 4.1-kilowatt-peak system powers household appliances and a water pump, reducing his monthly electricity bill from around Taka 1,500 to Taka 700-900. However, he has been unable to supply surplus electricity to the grid because he has not received net metering approval.

According to the Sustainable and Renewable Energy Development Authority (SREDA), grid-connected solar power capacity increased from 1,020 megawatts in January this year to 1,283 megawatts by early November.

To accelerate the expansion, the government has initially allocated Taka 1,500 crore in financing and plans to mobilise additional resources. It aims to add 3,000-4,000 megawatts of solar power to the national grid before the next summer season.