Bangladesh Turns to Rooftop Solar to Ease Power Shortages

Bangladesh has launched an incentive program for rooftop solar systems with battery storage to tackle its worst power shortages in years. The country aims to ease reliance on imported fuels, particularly natural gas and coal, which are in short supply.

The government will pay consumers who install eligible rooftop solar systems by February 28, 2027 a fixed rate of $0.086 per kilowatt-hour for surplus electricity fed into the national grid for three years. The goal is to generate 20 percent of its electricity from renewable sources by 2030 and increase this share to 30 percent by 2040.

The announcement comes as power shortages climbed to nearly 4,000 megawatts at their peak in August, causing widespread outages across the country. The government has been scrambling to secure oil and liquefied natural gas supplies, but long queues at compressed natural gas stations and reduced industrial output have highlighted the economic toll of the crisis.