Rooftop Solar Gains Momentum in Bangladesh’s Industrial Sector

The global energy landscape is undergoing a profound transformation. Environmental imperatives, economic considerations, and geopolitical factors are accelerating the shift toward renewable energy. For Bangladesh—a climate-vulnerable, export-dependent nation—the stakes are particularly high.

Industries in the country are taking notice. Factories that were hesitant to adopt solar power even two years ago are now installing extensive rooftop solar systems, turning their rooftops into mini power plants. This trend is visible across export-processing zones, pharmaceutical complexes, and garment clusters.

Early Adopters Lead the Way

Youngone Corporation, a Korean conglomerate, was among the first to act. In 2021, it launched Bangladesh’s largest rooftop solar project at the Korean Export Processing Zone in Chattogram. Initially 16 megawatt-peak (MWp), the facility has expanded to 37 MWp, generating 120–140 megawatt-hours daily. For perspective, one MWp of solar can supply the daytime electricity needs of roughly 300–400 households.

Md Shahjahan, managing director of the zone, said, “Solar power meets a large portion of our energy demand. We aim to expand to 50 MWp.” He estimates the project has already avoided 95,760 tonnes of carbon dioxide emissions.

Renata PLC, a leading pharmaceutical company, has installed 5.6 MWp, cutting 3.5 million kilograms of CO₂ annually and supplying 10 percent of its electricity. “Our goal is to protect the environment by reducing emissions,” said Razib Hasan, general manager of project management. Renata plans to expand to 6.6 MWp.

Ha-Meem Group, one of Bangladesh’s largest conglomerates, has installed 12.2 MWp across its facilities, lowering emissions by around six percent. Tanul Chakraborty, head of its energy department, noted, “We are committed to global sustainability standards. Our aim is to reach net zero by 2050, which will require another 300 MWp. Plans are underway for a large-scale solar plant in Moulvibazar.”

This year, Ha-Meem added 4.4 MWp at its Kaliganj industrial park in Gazipur and plans a further 15 MWp by mid-2026. Chakraborty encouraged other factories with available rooftops to adopt solar power without hesitation.

Economic and Technological Benefits

State-owned Infrastructure Development Company Limited (Idcol) has observed growing interest. CEO Alamgir Morshed said, “Rooftop solar is now a proven cost-saving measure. Grid electricity costs Tk 10–12 per kilowatt-hour (kWh), while rooftop solar can deliver power at nearly half that rate.”

Md Enamul Karim Pavel, head of Idcol’s renewable energy division, noted that over the past eight months, more than 30 companies expressed interest in rooftop solar. So far, Idcol has financed 165 MWp across 52 factories. Experts estimate Bangladesh has the potential to generate 4,000 MWp via rooftop solar on industrial buildings.

Global Buyers Push for Green Power

Exporters are increasingly pressured by international clients to reduce carbon emissions. Many apparel brands have signed onto the UN’s Science Based Targets initiative, committing to measurable reductions. American Eagle requires at least 10 percent of its suppliers’ electricity from renewables. Levi Strauss & Co and GAP target 42 percent emission cuts by 2030, while Belgium’s Stanley/Stella aims to reduce Scope 3 emissions by 30 percent by 2030.

BGMEA praised Bangladesh’s renewable energy expansion and stressed closer cooperation with local suppliers. Tanul Chakraborty said, “Compliance is no longer optional. Contracts are at risk without evidence of renewable sourcing. We now submit annual emission-reduction plans to buyers.”

Policy, Financing, and Technical Challenges

The potential removal of electricity subsidies is driving industries toward solar. Once subsidies end, grid electricity could cost Tk 20 per kWh, threatening industrial competitiveness. Experts warn that renewable energy is the only viable path.

However, challenges remain. High upfront costs, limited long-term financing, and bureaucratic hurdles for net metering slow adoption. Export-processing zones currently prohibit rooftop solar due to authorities’ profit from grid sales. Storage solutions remain expensive, and without proper back-feed to the grid, excess electricity is often wasted.

Duties on solar equipment remain high, and small-scale incentives are minimal. While lithium iron phosphate batteries have some duty relief, other key components like lithium cells, packs, and management systems face full taxes. Even solar panels are subject to advance income tax of 14–28 percent.

Currently, Bangladesh has around 3,909 rooftop solar units producing 190 MWp under net metering, serving factories, offices, and homes—a fraction of the nation’s potential. The National Rooftop Solar Programme aims for 3,000 MWp on public buildings by December 2025 and 30 percent renewable energy by 2040, requiring a dramatic expansion in capacity.

The Path Forward

Despite policy gaps, the private sector is demonstrating that solar is economically viable. Experts emphasize that renewable energy adoption is essential not just for environmental goals, but also for industrial competitiveness and energy security. With dwindling gas reserves and rising electricity costs, rooftop solar offers both a sustainable and profitable solution for Bangladesh’s industrial future.