Bangladesh has introduced a new legal framework to accelerate solar power deployment, facilitate private investment and reduce dependence on imported fossil fuels through the Special Solar Power Installation Ordinance, 2026.
The ordinance was gazetted on October 19, following Cabinet approval of its draft, establishing specific provisions for solar installations of up to 5 megawatts (MW).
It covers rooftops, courtyards, unused land, tea gardens, floating solar systems and agrivoltaic projects, while excluding large-scale ground-mounted solar power plants.
The government aims to install 3,000–4,000MW of rooftop solar capacity before next summer under its National Renewable Energy Development Strategy 2026–2030.
The ordinance is intended to address regulatory gaps that have complicated investment decisions, particularly regarding long-term electricity pricing, rooftop rental arrangements and maintenance responsibilities.
A key feature of the ordinance is its focus on the operational expenditure (OPEX) model, under which private investors finance, install, operate and maintain solar systems. Building owners receive electricity under contractual arrangements without bearing the full upfront investment cost.
The capital expenditure (CAPEX) model is also permitted for eligible institutions that finance and own their systems.
