The 2030 Ambition and Private Sector Role 

Private-sector representatives welcomed the government's policy support, including the reduction of import duties on solar equipment to 1 percent. They reported that new solar capacity additions increased from 88MW in September to 122MW in October. However, entrepreneurs pointed to difficulties in opening letters of credit, liquidity constraints in commercial banks and uncertainty over the continuation of fiscal incentives as major barriers to investment. They called for a stable policy environment and a comprehensive renewable energy law to provide long-term certainty for investors.

All these issues were widely discussed at the Solar Expo 2026, representatives from the private sector also cautioned that financing constraints, inadequate energy storage, land availability, regulatory uncertainty and concerns over electricity pricing could slow the country's journey towards a solar-powered future.

The country's target of generating 20 per cent of its electricity from renewable sources by 2030, equivalent to around 10,000 MW under the projections also discussed, represents a significant shift in its energy strategy. According to figures presented there Bangladesh currently has around 840MW of installed grid-connected solar capacity, producing approximately 700-750MW of operational output. Reaching the 2030 ambition will therefore require a substantial acceleration in project development.

The government has also formulated a policy to that end in a very short time accommodating suggestions from the energy experts and liberalised the setting up of the solar plants in the country. However, discussants highlighted the importance of private investment in scaling up solar generation, particularly through rooftop installations, industrial solar projects and large-scale solar power plants. 

Bangladesh's Solar Power Push: Financing, Policy and the Road to 2030
The government has allocated Tk 1,500 crore from its existing green financing fund to support rooftop solar power installations, as it seeks to add 3,000-4,000 megawatts (MW) of capacity before next summer. The initiative follows approval of the draft Special Solar Power Installation Ordinance, 2026, which aims to address regulatory gaps in projects financed and operated by private investors. The government hopes the low-interest financing scheme will accelerate rooftop solar installations and reduce dependence on fossil fuel-based power plants amid rising fuel prices following the Iran-US war.

Financing Framework
Under the Power Division's financing framework, private investors and rooftop owners will each contribute 20 per cent of the total investment, while the remaining 60 per cent will be provided as loans through designated financing institutions. The arrangement is designed to ensure that rooftop owners have a financial stake in the projects, creating a sense of ownership and encouraging them to maintain the systems properly.

The government could release additional funds in phases once the initial allocation was exhausted, with another Tk 500 crore potentially being made available. Power Division officials said loans from the three designated institutions could be relatively expensive. The government is therefore considering combining financing from different sources to lower the overall borrowing costs. It is also holding discussions with domestic and international commercial banks, including HSBC, Citi and BRAC Bank, which have expressed interest in providing relatively affordable financing for rooftop solar projects. 

According to Power Division officials, private banks are considering offering loans at an interest rate of around 5 per cent. If implemented, the arrangement would help mobilise additional funds from the domestic financial market. International development partners are also being approached to support the expansion. The World Bank has promised $500 million, while the Asian Infrastructure Investment Bank (AIIB) has initially committed to providing another $500 million. The Asian Development Bank (ADB) is also considering an initial financing package of $250 million.

Storage, Grid and Consumer Concerns
A key issue emerging from the discussion was the need to develop battery energy storage systems (BESS) alongside solar generation. Solar power production fluctuates with sunlight and weather conditions, making it difficult to match generation with electricity demand without adequate storage and flexible grid management. It was observed that Bangladesh may require around 4,000MW of battery storage capacity to support the planned expansion of renewable energy. A proposal was also discussed to enact a framework with a 10 percent battery storage requirement for specified new solar installations above 25-30 kilowatts, rising to 20 percent once total solar capacity crosses 3,000MW. Seasonal variations in electricity consumption could further complicate grid management. While summer demand provides greater scope for absorbing solar electricity, lower winter demand may leave the national grid with limited capacity to accommodate additional generation.

The integration of major power projects, including the Rooppur Nuclear Power Plant, will also require careful coordination of generation, storage and reserve capacity to maintain grid stability, researcher said.
Speakers stressed that expanding solar generation without corresponding investment in transmission networks and storage facilities could result in underutilisation of available electricity. While industry representatives welcomed investment incentives, consumer rights advocates raised concerns about the cost of solar electricity and the potential financial burden on consumers. Questione also raised over the pricing assumptions submitted by some private developers, citing benchmark solar generation costs of Tk 3.44-Tk 3.94 per unit against proposed purchase rates as high as Tk 10.85 per unit.  Stronger regulatory oversight and competitive pricing to ensure that renewable energy expansion does not create additional pressure on electricity tariffs. The consumer rights campaigner also argued that savings from gradually reducing dependence on expensive furnace oil-based power plants, where generation costs can reach Tk 26 per unit, could be redirected towards battery storage and renewable energy infrastructure.

Turning Ambition into Reality
Bangladesh's solar revolution will depend on more than policy announcements and tax incentives. Speakers identified affordable financing, suitable land, reliable technology, modern transmission infrastructure and regulatory certainty as essential conditions for accelerating the transition. They also emphasised the need to balance private investment opportunities with consumer affordability and the financial sustainability of the power sector.

As Bangladesh moves towards its 2030 renewable energy target, the central challenge will be to build a solar power system that is not only larger but also reliable, affordable and commercially viable. The discussions suggested that the country's next phase of energy development must move beyond installing solar panels towards creating an integrated renewable energy ecosystem capable of delivering long-term energy security.