Bangladesh Launches Rooftop Solar Incentives to Combat Energy Crisis

The Government of Bangladesh has introduced a special incentive package for rooftop solar power systems with battery storage to address severe power shortages and a persistent natural gas crisis. Under the new scheme, consumers who install eligible systems by February 28, 2027, will receive a tariff of 10.50 taka per kilowatt-hour for surplus electricity supplied to the national grid. This rate includes a 20% profit margin and an 11.25% premium over a benchmark generation cost of 8 taka, and will remain active until February 2030.

The initiative follows significant energy instability caused by conflict in the Middle East, which disrupted liquefied natural gas supplies through the Strait of Hormuz and increased import costs by approximately $2.5 billion. By promoting decentralized green energy, the government aims to increase the share of renewables in electricity generation to 20% by 2030 and 30% by 2040.

To qualify for the incentives, all solar equipment must meet technical standards set by the Sustainable and Renewable Energy Development Authority and the Bangladesh Standards and Testing Institution. The program is part of a broader strategy to reduce the country's vulnerability as a major energy importer.