Experts call for realistic plan, soft loans to achieve Bangladesh’s rooftop solar targets
Experts at a dialogue on Sunday stressed the urgent need for a pragmatic roadmap and accessible soft loans to effectively implement the government’s ambitious rooftop solar energy goals.
The Centre for Policy Dialogue (CPD) organised the crucial dialogue, titled ‘Rooftop Solar’, concerning the government's recently launched 'National Rooftop Solar Programme'.
Dr Khondaker Golam Moazzem, Research Director at CPD, Helen Mashiat Prioty, Senior Research Associate at CPD, and Md Nasir Uddin, General Member of the Bangladesh Solar & Renewable Energy Association, presented the keynote papers on the topic.
Khondaker Morshed Millat, Former Director, Sustainable Finance Department, Bangladesh Bank; Engineer Naznin Akter, Managing Director, G Solaric Bangladesh Limited; Ramprasad Pal, Deputy Director, Renewable Energy Directorate, Bangladesh Rural Electrification Board; Moniruzzaman, Director (Technical), Renewable Energy and Research & Development Directorate, BPDB; Sardar Mohammad Zafrul Hasan, Chief Engineer, Power Grid Bangladesh PLC; Engineer Md Mujibur Rahman, Director (Deputy Secretary), Renewable Energy Development, SREDA; and Mostafa Al Mahmud, President, Bangladesh Solar & Renewable Energy Association.
Announced on July 3, 2025, the solar energy goals aim to meet 20 percent of the total electricity demand from renewable sources by 2030 and 30 percent by 2040.
While the government has already launched initial steps for the programme's implementation, the CPD stressed the vital importance of robust prior planning and the development of effective implementation guidelines, the experts said.
Without these, there is a significant concern that this new endeavor could falter, much like previous initiatives such as the 'Net Metering Rooftop Solar Programme', which did not fully achieve its objectives, they said.
During the dialogue, a proposed design for the ‘National Rooftop Solar Program’ was presented, alongside an outline for a potential monitoring and evaluation framework aimed at ensuring its successful execution.
Suggestions and Challenges
Stakeholders have urged banks and financial institutions to offer soft loans at 3% interest to boost rooftop solar adoption, proposing alternatives to traditional bank guarantees such as ESCROW accounts or project-based assignments.
They also recommended recognising ‘deemed generation’ during load shedding to ensure fair compensation for solar output, while calling for import duty structures similar to those of IPP projects and improved security for institutional systems.
To ensure quality and accountability, it was suggested that SREDA oversee hardware standards, while utility companies supervise rooftop projects from design to operation.
Several challenges have emerged in implementing Public-Private Partnerships (PPP) under the OpEx Rooftop Solar model.
One major hurdle is that most off-takers are unwilling to provide bank or payment guarantees, as required by the current Net Metering Guidelines. As a result, banks and non-bank financial institutions are hesitant to approve loans without full guarantees.
The high effective interest rate of about 7.0 percent is another obstacle. In addition, entrepreneurs must invest 20–30 percent equity, which makes the model less attractive and more difficult to scale.
Security is also a concern, particularly for systems ranging from 10KW to 50KW installed in schools and colleges. These systems are vulnerable at night, especially in areas without proper surveillance.
Another critical issue is the problem of ‘deemed generation’ during load shedding.
Since grid-connected solar systems require a live grid to function, any power outage leads to a loss in solar generation and revenue. This is a significant challenge in rural areas where power cuts are more frequent.