Bangladesh offers tax breaks and premium tariffs to spur rooftop solar installations

In late August, Bangladesh unveiled a package of financial incentives aimed at accelerating rooftop solar deployment. The government will buy power from installations completed within six months at BDT10.15 ($0.082) per kilowatt-hour, providing a premium over the bulk rate and allowing producers to earn up to a 45% margin. All solar-related equipment will be free of customs, regulatory, supplementary duties and most taxes, with the programme set to run for three years.

A parallel National Rooftop Solar Initiative will target government offices, schools, hospitals and other key sites, with implementation guidelines already drafted. Industry analysts cite the move as a catalyst for the distributed energy resource sector, which is already surpassing official capacity estimates. However, they warn that delays in net-metering approvals could hinder further growth.