Bangladesh: Bangladesh’s distributed energy resource (DER) sector is taking shape after a slow start, with industrial rooftop solar emerging as the single biggest driver of clean energy expansion across the country.
According to United News of Bangladesh, rooftop solar capacity in Bangladesh has grown faster than other distributed resources, helping to achieve a slight reduction in daytime power demand, as stated in a new briefing note released on Tuesday by the Institute for Energy Economics and Financial Analysis (IEEFA). While official government statistics put the installed rooftop solar capacity at 418.1 megawatts (MW) as of June 2026, IEEFA’s estimates reveal a much larger footprint.
The study found that combined capacity across just 239 establishments, including major corporate groups, has already reached 667MW. If smaller units under 0.15MW are factored in, Bangladesh’s actual rooftop solar capacity could already be nearing 1,000MW. “Compared to the grid-scale variable renewable energy capacity of 859MW as of June 2026, the country’s growing rooftop solar capacity provides an encouraging signal for Bangladesh’s power sector,” said Shafiqul Alam, Lead Analyst for Bangladesh Energy at IEEFA South Asia and co-author of the briefing note.
The report highlighted strong momentum in the sector, noting that engineering, procurement, and construction (EPC) companies currently hold a project pipeline exceeding 500MW. Furthermore, the government’s latest strategy document sets a target of 10,450MW in new renewable capacity between 2026 and 2030, relying on rooftop solar for more than 50 percent (5,500MW) of that goal.
Despite the presence of net metering guidelines and low-cost financing options, rising electricity tariffs have become the primary driver for industrial and commercial adoption of rooftop solar. However, high import duties continue to pose a significant barrier. Although the government revised its duty structure, the changes increased the import duty on industrial rooftop solar projects to 17 percent-up from 1 percent under the previous capital machinery provision-while leaving small rural projects unable to meet stringent conditions for duty benefits.
Alam emphasized that a complete duty waiver across all rooftop solar projects would significantly enhance affordability and help Bangladesh meet its 2030 targets. Drawing from the successful experiences of Australia and India, the study recommends capital subsidies, duty exemptions, the gradual integration of smart meters, and battery storage alongside rooftop solar.
In addition to rooftops, the report underscores the immense potential in Bangladesh’s diesel-reliant agricultural sector. Converting just one-third of the country’s diesel-powered irrigation systems to solar power could slash Bangladesh’s annual diesel import bill by roughly US$244 million (Tk 3000 crore). To clear structural bottlenecks, IEEFA recommended that the Sustainable and Renewable Energy Development Authority (SREDA) and the Ministry of Power, Energy and Mineral Resources actively monitor online net metering applications to prevent bureaucratic delays that currently hinder progress.
Drawing on the experiences of Australia and India, Bangladesh could promote the deployment of battery storage alongside DERs, particularly rooftop solar. “For predictability and better management on the part of utilities, Bangladesh should gradually adopt smart meters with DERs, like rooftop solar,” added Alam.