Bangladesh’s rooftop solar capacity is growing faster than other distributed energy resources and might already stand in excess of 1 GW.
New analysis from the Institute for Energy Economics and Financial Analysis (IEEFA) identified 667 MW of rooftop solar capacity across 239 establishments, including groups of companies, compared to government data which reported 418 MW of rooftop solar capacity as of June 2026. As of the same month, Bangladesh’s grid-scale solar and wind capacity was 859 MW.
The analysis did not include hundreds of units with capacity below 150 kW due to poor information availability, but if included, IEEFA estimated Bangladesh’s rooftop solar capacity might already be around 1 GW.
Shafiqul Alam, lead analyst for Bangladesh Energy at IEEFA and one of the reports authors, told pv magazine the latest analysis did not include Solar Home System installations – an off-grid deployment program credited with bringing electricity to 20 million people, according to World Bank data.
Further growth is expected, with IEEFA finding engineering, procurement and construction (EPC) companies holding a 500 MW rooftop solar project pipeline. The Bangladesh government wants to see 5.5 GW of new capacity from rooftop solar by 2030.
There are some obstacles to deployment and the IEEFA report noted a new duty structure has increased the cost of rooftop solar projects in industries from 1% to 17%. The government has reduced import duties for rooftop solar systems, but small projects in rural areas are unlikely to benefit due to stringent conditions that need to be met, IEEFA says.
Given the Bangladesh government’s goal of installing 10,450 MW of renewable energy capacity between 2026 and 2030, relying on rooftop solar to provide more than 50% of new capacity, Alam recommended a full duty waiver to all rooftop solar projects.
Other policy recommendations from IEEFA include taking steps to speed up the net metering connections process. IEEFA found that despite a fixed timeline of 10 to 15 days for approving applications for net metering connections, both rooftop solar and solar irrigation projects have seen delays in obtaining net metering connections.
Net metering has played a role in supporting solar deployment in other markets in South Asia, such as Pakistan, however the policy can bring challenges in markets with existing obligations to pay independent power producers (IPPs). In Pakistan, the energy system has come under financial strain due to fixed capacity payment obligations for IPPs, which are exacerbated by growing net metering payments and more self-consumption on the network.
Alam told pv magazine that Bangladesh’s net metering capacity “is still significantly less” than Pakistan’s, and noted that IEEFA has recommended smart meters for “better predictability and management on the part of utilities.”
IEEFA’s briefing note followed July analysis of the impact higher electricity tariffs in Bangladesh are having on the country’s clean energy transition, which concluded rooftop solar could save industries $0.061/kWh.
The research found levelized cost of electricity (LCOE) for rooftop solar hovering around $0.028 to $0.032/kWh, compared to a current daytime grid tariff of $0.094/kWh for industrial offtakers with a sanctioned load of up to 5 MW. Savings would be increased beyond the gap in kWh rate as these users pay 5% value added tax on bills against their grid-based electricity consumption.
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