The Bangladesh Sustainable and Renewable Energy Association (BSREA) has raised concerns that the renewable energy incentives announced in the proposed FY2026-27 budget are benefiting only a limited number of companies, while the majority of consumers and businesses remain excluded from the support measures.
At a press conference held at the Dhaka Reporters Unity on Sunday, leaders of the association warned that Bangladesh could struggle to achieve its renewable energy ambitions unless the relevant Statutory Regulatory Orders (SROs) issued by the National Board of Revenue (NBR) are revised.
BSREA President Mostafa Al Mahmud said the existing incentive framework primarily favours a small group of solar power producers and companies operating under the Renewable Energy Service Company (RESCO) model. According to him, residential consumers, solar irrigation projects, small and medium-sized businesses, importers, distributors, and engineering, procurement and construction (EPC) firms receive little or no direct benefit from the measures.
He argued that the current policy structure effectively covers only around 20 to 22 per cent of electricity consumers, leaving a significant portion of the market outside the incentive scheme.
Mostafa Al Mahmud also noted that a common misconception has emerged that duties on solar equipment have been fully withdrawn, whereas most renewable energy products continue to face existing tax and duty burdens.
The association further criticised the lack of substantial incentives for solar-powered irrigation systems, solar street lighting projects, and battery energy storage systems (BESS).
BSREA leaders pointed out that Bangladesh currently operates around 1.7 million diesel-powered irrigation pumps, many of which could potentially be converted to solar-powered systems with appropriate policy support.
According to the organisation, Bangladesh may be able to install only 2,000 to 3,000 megawatt-peak (MWp) of solar capacity by 2030 under the present policy framework, far below the national target of 10,000 MWp.
To accelerate renewable energy adoption, BSREA called for duty-free imports of renewable energy equipment, extended tax holidays, and greater incentives for residential, agricultural and small commercial users.
The association stressed that renewable energy should be treated as a national energy security priority rather than a benefit reserved for a limited group of businesses.
“Renewable energy is not a privilege for a select business group; it is directly linked to the country's energy security,” Mostafa Al Mahmud said, urging policymakers to make support measures more inclusive and accessible.
The press conference was also attended by BSREA Senior Vice-President Zahidul Alam, Vice-President MA Taher, General Secretary Engineer Mohammad Ataur Rahman Sarkar Rozel, Director (Finance) Nitai Pada Saha, Tofayel Ahmed, representatives of Super Star Group, and other leaders of the association.
