DHAKA, June 23, 2026 — Bangladesh needs policy reforms, lower taxes and duties, and easier access to financing to accelerate the growth of its renewable energy sector, experts said, adding that Pakistan’s recent “solar revolution” offers valuable lessons for expanding rooftop solar and distributed power generation in Bangladesh.
The observations were made at a dialogue titled “Pakistan’s Solar Revolution: Lessons for Bangladesh from a National Budget Perspective,” organized by the Centre for Policy Dialogue (CPD) at a hotel in the capital on Tuesday.
Speakers at the event said Bangladesh has already made a political commitment to transition towards renewable energy, which is a positive development. However, significant structural and institutional challenges continue to hinder effective implementation.
CPD Research Director Dr. Khandaker Golam Moazzem said Pakistan’s rapid expansion of solar power had transformed the country’s electricity sector within a short period.
“Bangladesh can also reduce its dependence on fossil fuels and make more effective use of renewable energy resources,” he said.
Moazzem noted that the national budget has introduced several tax and fiscal incentives for renewable energy, electric vehicles (EVs), and the battery industry. However, he said there remains considerable scope to expand renewable energy use in the agricultural sector.
He also highlighted the progress of the National Rooftop Solar Program, which aims to generate about 3,300 megawatts (MW) of electricity by utilizing the rooftops of government buildings across the country.
Presenting a paper titled “Solar Rush,” researcher Mohammad Basit Ghauri said Bangladesh is currently at a critical juncture in its solar energy transition, but high taxes, financing constraints, and policy complexities are slowing the sector’s growth.
He said Pakistan imported 17.9 gigawatts (GW) of solar panels in fiscal year 2025, exceeding the country’s grid capacity. Pakistan currently has an estimated 28 to 38 GW of installed solar capacity, a large portion of which comes from distributed generation systems.
According to Ghauri, high electricity prices and declining public confidence in the national grid have been the main drivers behind Pakistan’s rapid solar expansion. Falling solar panel prices, driven by increased production in China, have also fuelled the country’s “solar rush.”
He added that by 2025, around 7.3 million households in Pakistan had adopted solar energy systems, with a significant share located in rural areas.
The widespread adoption of solar energy has substantially reduced carbon emissions and lowered energy import costs, he said.
Another research paper presented at the dialogue noted that Bangladesh’s Solar Home System program was once among the world’s largest off-grid electrification initiatives, providing electricity access to more than 20 million people. However, the program has slowed in recent years, and many systems have become non-operational.
The study said that while the number of net-metering-based rooftop solar installations is gradually increasing, the sector still faces major challenges, including high taxes, complicated approval procedures, financing gaps, and weak institutional coordination.
Addressing the event as the chief guest, the Chief Whip of Parliament said the government has introduced tax incentives for renewable energy and has undertaken initiatives to expand solar energy use in various sectors, including irrigation pumps.
Experts said Bangladesh could also achieve a rapid solar transition similar to Pakistan’s if it ensures appropriate policy support, accessible financing, and a favourable investment environment.
