Gas-fired power plants were once regarded as the cheapest source of electricity after hydropower. Mounting fuel costs are eroding that position. Rooftop solar now produces power more cheaply than gas: BDT 7.10 per unit for gas-fired generation against BDT 5 per unit for rooftop solar, or BDT 8 per unit once battery storage is included.

The figures come from a paper presented on November 4 at a seminar on the potential for rooftop solar in households and industry, held on the closing day of Bangladesh Solar Expo-2026. Md Enamul Karim Pavel, head of the renewable energy division at Infrastructure Development Company Limited (IDCOL), presented the paper, titled “Domestic and Industrial Rooftop Solar: Ensuring Energy Security and Creating Employment”.

According to the paper, generation costs vary sharply by fuel. Furnace oil-fired plants average BDT 27.40 a unit, coal-fired plants BDT 13.20 and electricity imported from India, including from Adani, BDT 11.70. Gas-fired generation costs BDT 7.10 a unit and rooftop solar BDT 5.

The government’s average generation cost is now BDT 12.80 a unit, the paper said, while electricity is sold to customers at an average of BDT 8.50. The large gap between the two is straining the power sector’s finances.

Pavel told Bonik Barta: “At present, if a customer or entrepreneur installs rooftop solar, the average cost of generating electricity will be about BDT 5 a unit. For households the cost is lower, at BDT 3 to BDT 4 a unit. The system can be installed with their own investment. Financing is also available through IDCOL’s Demand Aggregator system: a 20 percent down payment, with the remaining amount borrowed at 6 percent interest over three to five years.”

He said the government had already allocated BDT 15 billion to expand the renewable energy sector.

Industry offers substantial potential too. The paper put the private industrial sector’s potential rooftop solar capacity at about 5,000 MW, of which the ready-made garment industry alone accounts for 4,150 MW and other industries a further about 850 MW. Harnessing it would cut industrial electricity costs and ease pressure on the national grid.

Bangladesh is prioritising renewables as it seeks to reduce fossil-fuel generation, strengthen energy security and cope with volatility in global energy markets.

Prime Minister Tarique Rahman announced the BDT 15 billion fund at the opening ceremony of the two-day expo on Tuesday. The money is intended to make it easier to finance solar installation, with further sums to be arranged in phases. Under the plan, easier finance is meant to increase solar installation in homes and industrial plants and encourage private investment in the sector.

The government has set a target of 10,450 MW of renewable capacity, to be reached within five years. To that end a dedicated solar law has been approved, the rate for power supplied to the grid under net metering has been fixed at BDT 10.50 a kilowatt-hour, and duty concessions have been granted on imports of solar equipment. Those involved in the sector expect the measures to increase interest among both investors and customers.

Bangladesh’s total installed generation capacity now stands at about 29,500 MW. Official figures for renewable capacity differ: the Sustainable and Renewable Energy Development Authority (SREDA) puts total renewable capacity at 2,017 MW, including 1,724 MW of solar, of which 1,346 MW is connected directly to the national grid.

Low generation costs, straightforward installation, and broad potential across industry and households are making rooftop solar an important option for cutting power-sector costs.

Factories and commercial premises are increasingly installing solar on their roofs. Lower costs than conventional fuels, uncertainty over supply and government incentives are drawing industrial investors in. Use is rising notably in the ready-made garment industry, where rooftop systems meet a large share of a factory’s own demand and reduce reliance on the national grid.

A report by the US-based Institute for Energy Economics and Financial Analysis (IEEFA) illustrates the potential. Published on August 4, it said government figures show 418 MW of rooftop solar currently installed. By IEEFA’s own count, however, 239 large factories alone have reached 667 MW.

Counting smaller installations as well as large factories, total rooftop solar capacity could reach 1,000 MW, the report said. Rooftop systems are already helping to trim daytime demand: IEEFA said a comparison of demand between April 16 and June 11, 2024 with the same period in 2026 pointed to the trend.

The Bangladesh Power Development Board (BPDB) is pressing for more solar use to cut fossil-fuel generation. In the board’s assessment, the Middle East conflicts and turbulence in global energy markets have put fresh strain on the country’s generating system, leaving no option but to expand domestic and renewable sources, with solar among the most promising. State financing, duty concessions and falling technology costs have together made the investment case.

BPDB Chairman Rezaul Karim told Bonik Barta: “On a calculation that excludes batteries, rooftop solar costs about BDT 3 to BDT 4 a unit. Allow for 20 percent battery backup and the cost comes to BDT 7 to BDT 7.50 a unit. These are our preliminary figures.”

“Global energy market volatility and the war in the Middle East have led countries around the world to increase their use of solar power. We have to move the same way. Net metering has been introduced. It will encourage customers to take up solar, and because surplus power can be sold to the grid, investors will come forward too,” Karim said.

Factories are already showing what is possible. Hams Garments, a ready-made garment maker that holds the highest score worldwide under the international LEED Platinum certification, has installed 2 MW of rooftop solar at Sreepur in Gazipur, meeting a large part of its own demand.

With the investment proving cost-effective and sustainable, the company has taken the initiative to install a further 3 MW.

Hams Group’s managing director Md Shafiqur Rahman told Bonik Barta: “Rooftop solar is now a cost-saving proposition for industry. It has established a sustainable footing in the power and energy sector. Because the government has granted duty concessions on imports of solar equipment, many garment factories are now showing interest. Some say the investment pays back in three years, but in practice it takes about five on average. Still, given the supply it provides, the outlay is no longer a major concern for industry.”

Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), told Bonik Barta: “The steps the government has taken on rooftop solar are positive. There are some small obstacles; remove them and the target can be met. We are getting a very good response from customers. Of all the solar systems installed across the country, rooftop solar draws the most interest. The market is growing. The government has created policies and incentives. So in the days ahead, the solar market will set a milestone.”

He said the two-day expo drew exhibitors promoting a range of solar systems, with each stall receiving responses from about 300 customers on average about installing solar systems.

“It’s a positive sign of how interest in solar power is growing among ordinary people,” Mahmud said.

Rooftop solar is steadily becoming more important for cutting fuel costs, coping with uncertain supply and preserving the industry’s competitive edge. Turning that potential into a substantial contributor to the national power system, however, will require easier finance and policy support alongside technical capacity, effective use of the power generated, effective implementation of net metering, a simpler approvals process and closer coordination with the grid.