Rooftop solar gets new incentive package

The government has announced a special incentive package to encourage consumers to install rooftop solar power systems with battery storage, as part of its efforts to expand renewable energy and strengthen energy security.

The Ministry of Power, Energy and Mineral Resources issued a circular yesterday outlining the new scheme, which also came into effect on the same day.

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Under the scheme, the cost of generating electricity from rooftop solar systems with battery storage has been set at a maximum of Tk 8 per unit. The benchmark is based on current market prices and recent tenders reviewed by the Power Division.

To make the investment more attractive, the government has added a 20 percent profit margin and an 11.25 percent premium to the production cost. This takes the final purchase tariff to Tk 10.50 per unit.

The average retail price of grid electricity is currently Tk 10.40 per unit, according to the latest decision of the Bangladesh Energy Regulatory Commission. Consumers who can install and operate the systems at a cost below the Tk 8 benchmark will be allowed to keep the savings as additional profit.

Under the Net Metering Guidelines 2025, consumers who install rooftop solar systems by February 28, 2027, and supply surplus electricity to the national grid will receive Tk 10.50 per unit for three years, until February 28, 2030.

However, systems installed after the February 2027 deadline will not qualify for the incentive.

Power distribution companies will maintain records of consumers participating in the scheme and measure how much electricity they supply to and receive from the grid. They will also manage the incentive payments.

The payments will be made directly to consumers through bank accounts or mobile financial services (MFS). Cash payments will not be allowed.

The government has also made it mandatory for all solar equipment, including panels, batteries, inverters and meters, to meet the technical standards set by the Bangladesh Standards and Testing Institution (BSTI) and the Sustainable and Renewable Energy Development Authority (SREDA).

Consumers seeking policy guidance or technical assistance can contact the Power Division’s One-Stop Service Centres or utility offices at the district and upazila levels.