A CPD dialogue on solar energy transition has highlighted urgent calls for comprehensive policy, fiscal and financial reforms to accelerate Bangladesh’s shift towards a modern, grid-integrated renewable energy system. Experts warned that structural barriers are limiting investment and slowing the growth of the solar sector, with direct implications for fuel imports, subsidy pressures and long-term power security.
The discussion took place at a hotel in Dhaka under the title “Solar Revolution in Pakistan in the Eyes of the Country's Leading CSOs: Lessons for Bangladesh from National Budget Perspective”, organised by the Centre for Policy Dialogue (CPD).
Chief Whip of the Jatiya Sangsad, Nurul Islam Moni, attended as chief guest. He reaffirmed the government’s commitment to expanding renewable energy as part of efforts to strengthen energy security, reduce dependence on imported fuels and support sustainable economic growth.
The session was moderated by CPD Research Director Khondaker Golam Moazzem, who said Bangladesh must urgently align its energy policy framework with regional and global trends to build a more efficient and investment-friendly renewable energy ecosystem.
Presenting the Bangladesh perspective, CPD Research Associate Atikuzzaman Shazeed said the country is undergoing a structural shift from its off-grid solar home system programme towards on-grid solar and net metering-based systems. He noted that the Solar Home System initiative had successfully electrified around 20 million people but had now reached saturation due to rapid grid expansion.
He added that around 47 per cent of installed systems are currently non-functional, mainly due to battery degradation and the absence of a structured maintenance and transition framework. Despite growing potential, on-grid solar adoption remains limited, with only 4,551 net metering installations contributing 213.3 MW of capacity, indicating significant untapped potential in industrial and commercial segments.
Keynote speaker Muhammad Basit Ghauri, Manager of Special Initiatives and China Programme at Renewables First of Pakistan, outlined Pakistan’s recent solar expansion, driven by high electricity tariffs and simplified net metering policies. He said much of the investment had been self-financed by consumers aiming to reduce electricity costs.
Participants identified several structural barriers to renewable energy growth in Bangladesh, including import duties on solar equipment ranging from 27.5 to 33.6 per cent, limited access to affordable financing and strict collateral requirements that discourage investment in solar projects.
They also noted that the lack of recognition of power purchase agreements and solar assets as bankable instruments continues to restrict private sector participation. Ongoing subsidies for diesel-based irrigation were described as a distortionary factor reducing solar competitiveness in agriculture, while complex net metering approval processes were slowing adoption further.
Experts at the dialogue called for tax rationalisation on solar components, the introduction of a unified digital platform for net metering approvals, and the expansion of OPEX and leasing-based financing models to improve project bankability. They also emphasised integrating solar irrigation systems with the national grid to enable energy sales and improve efficiency, alongside shifting national energy planning from installation targets to performance-based metrics focused on long-term reliability.
Representatives from Infrastructure Development Company Limited (IDCOL), Bangladesh Independent Power Producers Association (BIPPA), Bangladesh Sustainable and Renewable Energy Association (BSREA) and Coastal Livelihood and Environmental Action Network (CLEAN) stressed the need for regulatory stability, innovative financing mechanisms and stronger coordination between public and private stakeholders.
The dialogue concluded that Bangladesh remains at a critical juncture in its energy transition. While its off-grid solar programme is widely recognised as a global success, participants cautioned that future progress will depend on decisive reforms, improved financial structures and streamlined regulation to ensure a resilient and sustainable renewable energy future.
