While we often talk about expanding renewable energy, a new assessment by the Infrastructure Development Company Limited (Idcol) shows just how much potential we are leaving untapped. Reportedly, the country could generate more than 3,600 megawatts peak (MWp) of electricity from rooftop solar panels, but harnessing this potential would require an investment of Tk 16,295 crore. Given our growing energy insecurity, particularly as the entire country grapples with severe load shedding, the potential of solar power can no longer be ignored.

According to Idcol, the textile and garment industry alone could generate 2,815MWp from rooftop solar, given that Tk 12,669 crore is invested. Some companies have already benefited from rooftop solar. Ha-Meem Group has installed 17MWp across three factories, reducing diesel use by nearly 60 percent, while Walton Hi-Tech Industries has installed 33.8MWp and plans to expand it to 50MWp. Clearly, rooftop solar can reduce businesses’ energy costs, strengthen energy security and cut carbon emissions. So, why is the sector still struggling to expand at the required pace?

We once had one of the world’s largest off-grid solar programmes, but nearly half of the 60 lakh solar home systems installed in the past are now reportedly non-functional, according to a CPD survey. We therefore need a proper long-term strategy to expand solar energy. We can learn from Pakistan, which has seen a remarkable expansion of distributed solar, with an estimated 28-38 gigawatts deployed, mostly through rooftop and behind-the-meter systems. Meanwhile, Bangladesh currently has only 4,551 net-metered rooftop solar installations with a combined capacity of 213.3MW, per the CPD study. Financing constraints, high taxes on solar equipment, regulatory bottlenecks and institutional fragmentation continue to discourage investment. Some manufacturers have also complained about lengthy financing procedures and the need to make large upfront investments before reimbursement. These hurdles must be addressed if the government is serious about accelerating the transition to clean energy.

  While it is encouraging that Idcol plans to increase its annual financed capacity from 129MWp this year to around 233MWp by 2029-30, the scale of the country’s potential calls for greater ambition. To this end, banks and non-bank financial institutions should be encouraged to expand their rooftop solar portfolios. Besides, operational expenditure (OPEX) models can help smaller businesses overcome the barrier of high upfront costs. The government must also ensure that net metering, taxation, financing and grid integration policies work together. Rooftop solar can reduce pressure on the national grid, lower reliance on imported fossil fuels, strengthen energy security, and help the country meet its climate commitments.