-6aaebf860fb15.jpg)
For all latest news, follow the Daily Sun's Google News channel.
Industrial rooftops are emerging as the country’s next big investment frontier, with tax concessions, cheap financing and net metering converging to unlock an estimated Tk17,000 crore in new solar investment.
The National Board of Revenue (NBR) issued a gazette notification on Wednesday last slashing import duties on solar equipment to 1% for six months, scrapping the existing 15% VAT and 2% advance tax that had pushed the overall tax burden as high as 64%.
The concession covers mounting structures, inverters, battery management systems, SCADA and monitoring systems, and solar modules – for both industrial and commercial importers.
Rooftop solar capacity at industrial establishments has already reached 667 megawatts (MW), according to the Institute for Energy Economics and Financial Analysis (IEEFA), with total national rooftop capacity, including smaller systems, expected to have crossed 1,000 MW.
IEEFA’s analysis found the expansion could cut daytime electricity demand by up to 6%.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the industry had pressed the government for years to exempt all solar equipment from tax.
“Factories need electricity to operate. Since the government is currently unable to fully meet electricity demand, solar power is the only solution,” he told the Daily Sun.
Hatem said rooftop installations would need around Tk17,000 crore in fresh investment and could help offset the country’s electricity shortfall, estimated at 4,000-4,500MW.
Infrastructure Development Company Limited (IDCOL) is backing the push, both investing directly and arranging foreign financing for factories.
M Masrur Reaz, chairman of Policy Exchange Bangladesh, noted this was not the government’s first solar tax concession – the NBR had already eased duties on inverters, battery packs, lithium cells and modules at the start of the fiscal year, and clarified HS-code confusion in August.
The September order, he said, extended relief across nearly every major component of a solar system rather than panels alone, which matters because large rooftop projects require substantial mounting structures, cabling, batteries and control equipment alongside the panels.
3,600MW potential on factory rooftops
An IDCOL assessment found more than 3,600 MW of solar potential across the country’s industrial and commercial rooftops, requiring Tk16,000-17,000 crore in investment.
It identified 1,171 establishments best placed for installation, capable of generating around 1,263 MW, with a further 4,712 establishments offering another 2,358 MWp.
The ready-made garment and textile sector holds the largest share – about 2,815 MW, needing an estimated Tk14,669 crore – while a separate Centre for Policy Dialogue (CPD) study put garment-sector rooftop potential at up to 1,768 MWp.
IEEFA also pointed to irrigation, largely diesel-powered at present: converting a third of diesel pumps to solar could cut Bangladesh’s annual diesel import bill by around $244 million, or roughly Tk3,000 crore.
Net metering and financing
Under the 2025 Net Metering Guidelines and the National Rooftop Solar Programme – targeting 2,000-3,000MW of new capacity – consumers can feed surplus solar power into the national grid.
Revised 2025 rules also require rooftop solar on buildings with at least 1,000 square feet of usable roof space when applying for new connections, and mandate that industrial and commercial consumers install solar equivalent to at least 20% of approved load in specified cases.
A separate incentive announced in early September guarantees Tk10.50 per unit for surplus electricity from qualifying rooftop systems installed by 28 February 2027, with the rate running until February 2030.
The government is also setting up a Tk1,500 crore fund for low-interest renewable energy financing, covering households, institutions and industrial establishments.
Loans will run up to ten years, including a one-year grace period, and can be used for rooftop solar, net metering systems, solar home systems, irrigation pumps, and related inverters, meters and batteries.
Energy economist Shafiqul Alam said the fund reflected the government’s renewable energy priorities, adding that involving IDCOL and the Palli Karma-Sahayak Foundation (PKSF) would extend benefits to rural areas, though low-income households would still need capital subsidies alongside loans.
Early movers
Ha-Meem Group has installed 17MWp of rooftop solar across three factories with IDCOL financing, cutting diesel consumption by about 60%.
Walton Hi-Tech Industries has 33.8MWp installed and plans to expand to 50 MW, while Gunze United Limited commissioned a 424kWp, 722-panel rooftop project at the Dhaka Export Processing Zone in August.
Industry stakeholders say solar’s daytime generation profile aligns naturally with factory operating hours.
IEEFA’s August analysis found 239 large industrial establishments had installed 667MW of capacity, with total rooftop capacity, including sub-150kW systems, nearing 1,000MW, contributing to a roughly 6% fall in daytime demand between 2024 and 2026.
The government aims to raise total solar capacity to 10,000MW within five years, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku announced in July.
Installed solar capacity then stood at 797MW, per Bangladesh Power Development Board and Power Cell figures.