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Bangladesh could generate more than 3,600 megawatts peak (MWp) of electricity from rooftop solar panels, according to a new assessment by the state-owned Infrastructure Development Company Limited (Idcol).
However, Tk 16,295 crore worth of investment would be required to tap this potential, said the state-owned institute that finances renewable energy projects.
Idcol identified 1,171 companies as the strongest near-term candidates, with a combined potential of 1,263MWp, while another 4,712 companies could add a further 2,358MWp.
The textile and garment sector, which drives the bulk of the country’s export earnings, dominates the opportunity, according to the study, which is based on interviews with more than 10,000 industrial and commercial companies.
The sector accounts for 2,815MWp of the total potential — but needs investment of Tk 12,669 crore to harness that.
Within that, Idcol identified 1,016 companies, out of more than 9,000 garment, textile and export-processing-zone firms surveyed, as top near-term prospects, capable of adding 879MWp.
The remaining non-garment industrial sector could contribute another 806MWp, with 155 companies ready to move immediately on 384MWp.
To capture this, Idcol plans to significantly scale up rooftop solar financing over the next five years.
Under its roadmap, annual financed capacity is projected to rise from 129MWp in 2026 to 136MWp in 2027, 200MWp in 2028, and roughly 233MWp in both 2029 and 2030.
Annual financing requirements are projected to increase from Tk 450 crore in 2026 to Tk 700 crore over the same period.
Idcol has so far approved 352MWp of rooftop solar projects, with 264MWp already operational, said Md Enamul Karim Pavel, its head of renewable energy.
Some of the country’s largest manufacturers are already investing at scale.
Ha-Meem Group, one of the Idcol-financed companies, has installed 17MWp of capacity across three Gazipur factories, cutting diesel use by nearly 60 percent, according to Tanul Chakraborty, who heads the group’s energy department.
The panels perform best through late morning and early afternoon, and the investment has both lowered the group’s carbon footprint and reduced its reliance on diesel generators during grid outages, he said.
Walton Hi-Tech Industries, another major industrial user, has installed 33.8MWp of capacity, generating roughly 40 million kWh (4 crore units) of electricity annually, and plans to expand to 50MWp.
“Expanding our solar power capacity is not only about reducing electricity costs, but also about strengthening Walton’s energy security and reducing our dependence on conventional power sources,” said Md Yousuf Ali, the company’s additional managing director.
Idcol’s financing has helped accelerate the rollout.
“The use of solar power is also helping us reduce our carbon footprint. We estimate that our solar generation can avoid around 19,000 tonnes of CO₂ emissions annually. So, the initiative brings both economic and environmental benefits,” he added.
Despite this momentum, financing remains a point of friction for some manufacturers.
A garment factory owner, speaking on condition of anonymity, said his company had tried and failed to secure Idcol financing for a rooftop solar system a few years ago due to lengthy procedures and extensive documentation.
Factories are typically required to make the initial investment themselves and wait for reimbursement.
Many manufacturers simply cannot lock up that amount of capital for several months, he said.
Idcol’s Enamul dismissed the characterisation of the process as bureaucratic red tape.
“Most of the documents we require are basic requirements for any loan or account opening. As many of our clients approach Idcol for the first time, we need to collect the necessary information upfront.”
Idcol’s rejection rate is low and companies that need more time to submit documents are afforded that time, he said.
For smaller companies, he pointed to the Operational Expenditure (OPEX) model, which allows a business or property owner to host a solar power plant with zero upfront capital investment, as an alternative to individual loans.
“An OPEX provider can bundle several small projects and seek financing as a single portfolio. In that case, we require the necessary information from the OPEX company rather than each beneficiary factory.”
Several projects have already been approved under this model.
It can help smaller companies adopt rooftop solar without having to shoulder the full documentation and financing burden themselves, Enamul added.
Idcol’s potential estimate is broadly credible, said Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA).
“There is definitely potential for around 3,500MWp to 4,000MWp of rooftop solar in the industrial sector,” he said, citing available rooftop space, building age and dust pollution around some facilities as factors that support this range.
Idcol’s financing terms are “more convenient for financially solvent industries” but they can be complicated for others.
If more banks and non-bank financial institutions expand their portfolios in rooftop solar financing, it could make the process easier for industries, he added.
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