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Govt launches Tk 1,500cr soft loan scheme for solar expansion

Published : Thursday, 17 September, 2026 at 12:33 PM

Observer Online Report

Collected Photo

The government has launched a Tk 1,500 crore soft loan package at 6 per cent interest to expand rooftop solar and accelerate renewable energy adoption.

The Finance Division issued a circular signed by Joint Secretary Anarul Kabir to execute the decision. The government interest rate is set at 0.5 per cent, while the maximum effective annual interest rate for end-borrowers will be 6 per cent inclusive of all fees.

The scheme aligns with the National Renewable Energy Development Strategy (2026-2030), which aims to generate 20 per cent of total electricity from green sources by 2030. The fund will finance rooftop solar systems, net metering, systems for industries, solar irrigation pumps, inverters, meters, and battery storage.

Three state agencies—Infrastructure Development Company Limited (IDCOL), Bangladesh Infrastructure Finance Fund Limited (BIFFL), and Palli Karma-Sahayak Foundation (PKSF)—will receive Tk 500 crore each to implement the program.

Tk 1,000 crore will be reallocated from the MSME block allocation in the FY 2026-27 budget, while Tk 500 crore will come from the government operating fund. Loans carry a 10-year repayment tenure, including a one-year grace period.

Participating agencies must absorb all default risks. Funds cannot be used for debt repayment, land or stock purchases, personal spending, administrative expenses, or fund transfers.

Institutions must submit their implementation guidelines and loan policies to the Finance Division within 30 days. The circular took immediate effect.

-SA

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Editor : Iqbal Sobhan Chowdhury

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