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Bangladesh’s industries are rapidly expanding rooftop solar as prolonged energy shortages, rising electricity costs and pressure to cut carbon emissions push businesses to seek cheaper and more reliable power.
More than 600 megawatts (MW) of rooftop solar capacity has been installed at industrial facilities across the country, with export-oriented garment and textile factories accounting for most of the projects, according to industry officials.
The shift has accelerated over the past two years as factories have struggled with gas shortages and rising electricity tariffs, while international buyers have increasingly demanded lower carbon emissions.
DBL Group has installed 5.5MW of rooftop solar at seven garment and textile factories and plans to add another 16MW at 10 factories, including ceramic and garment units. Of the additional capacity, 8MW is expected to come into operation this year and the rest next year.
“We are investing rapidly in solar power because of energy security concerns at our different businesses and pressure from international buyers to reduce carbon emissions,” said MA Rahim, vice-chairman of DBL Group.
He said advances in technology had reduced installation time, adding that solar electricity generated at the group’s factories costs around Tk6-Tk6.50 per unit.
Industry officials said most large rooftop solar plants had been installed over the past two years.
While rooftop solar cannot meet an industry’s entire electricity demand, it can support factory operations for three to four hours during daylight. Typically, solar supplies 5-15% of a factory’s total electricity needs, although the share is considerably higher at some facilities.
Major companies that have installed rooftop solar include Abul Khair Steel, Walton, Ha-Meem Group, PRAN-RFL Group, BSRM, Youngone Group, Meghna Group of Industries (MGI), Pacific Jeans Group, Team Group, Rising Group, Urmi Group, Microfiber Group, Palmal Group, Apex Footwear, Karnaphuli Shoe Industries and Masco Group.
A report by the US-based Institute for Energy Economics and Financial Analysis (IEEFA), published on 4 August, said the government’s official figure put Bangladesh’s installed rooftop solar capacity at 418MW. However, IEEFA estimated that 667MW had been installed on the roofs of 239 large industrial facilities.
The institute said total rooftop solar capacity could reach 1,000MW if smaller installations were included.
PRAN-RFL Group plans to install more than 100MW across its factories. It is already generating 35MW at 20 factories and expects to add at least another 30MW this year. Two factories are also supplying electricity to the national grid.
Akij Bashir Group has installed 21MW at Janata Jute Mills, meeting its entire electricity demand from rooftop solar. It has also installed a 13MW system at Akij Glass’s factory in Habiganj, including an 8MW battery storage system that allows the factory to use solar power at night.
The group began solar generation in 2022 and now has a combined rooftop capacity of 75MW. It is working to add another 28MW.
MGI has installed 64.84MW across its factories, meeting around 5% of its electricity demand. It plans to add another 50MW, taking its total capacity to nearly 115MW.
Omera Solar, a subsidiary of East Coast Group, has installed 130-140MW at around 100 industrial facilities since 2021. Work is under way at 12 more sites, adding another 20MW.
Masudur Rahman, chief executive officer of Omera Solar, said the sharpest growth in industrial rooftop solar had occurred over the past two years amid the worsening energy crisis.
Solar plants typically have a lifespan of 20-25 years and relatively low operating costs after installation, apart from maintenance, he said. Solar electricity can cost around half as much as grid power or less, making it increasingly attractive to industrial investors.
The government has also introduced an incentive to encourage rooftop solar generation and supply surplus electricity to the national grid through net metering.
Under the scheme, consumers installing rooftop solar systems with battery storage by 28 February 2027 and supplying surplus electricity to the grid will receive Tk10.50 per unit for three years, until 28 February 2030.
The Energy Division said the maximum cost of generating rooftop solar power with battery storage had been set at Tk8 per unit. A 20% profit margin and an 11.25% premium will be added under the special incentive.
The cost advantage is significant. Electricity costs around Tk12.73 per unit for small industries, while the average tariff for medium-pressure connections at large factories is Tk12.85 and Tk12.75 for high-pressure connections. During peak nighttime demand, the cost can approach Tk16 per unit.
Rooftop solar generation generally costs Tk4-Tk8 per unit. The cost of installing 1MW has also fallen to around Tk4 crore from about Tk5 crore five years ago, while the same capacity on the ground costs around Tk8 crore.
BGMEA President Mahmud Hasan Khan said loans for solar installations were available at 5% interest from Bangladesh Bank’s Green Transformation Fund and at 6% from IDCOL. However, he said borrowers seeking IDCOL financing were required to provide a 100% bank guarantee.
Industry experts said rooftop solar could be expanded to another 1,300 factories if appropriate financial and policy incentives were provided.
Khandaker Golam Moazzem, research director at the Centre for Policy Dialogue, said Bangladesh needed to expand domestic gas production, renewable energy and electrified economic activities as part of a long-term response to the energy crisis.
He said low-interest financing should be made available to extend rooftop solar beyond large companies to small and medium-sized factories. Green bonds and low-cost international funds could also be mobilised to finance solar projects.
“The Bangladesh Bank would need to provide guarantees in this case,” Moazzem said.