Jun 6, 2026
| The Daily Star
Civil society organisations yesterday urged the government to reduce taxes and duties on renewable energy equipment to a symbolic 1 percent for the next decade.
They said the current average tax burden of 37 percent is making solar power unnecessarily expensive and slowing Bangladesh’s renewable energy transition.
The demand was made at a press conference titled “Renewable Energy for Energy Security: Policy Shifts Needed in the National Budget” at a Dhaka hotel.
The Coastal Livelihood and Environmental Action Network (CLEAN), the Bangladesh Working Group on Ecology and Development (BWGED), and several other organisations jointly organised the event.
A policy paper presented at the event said renewable energy equipment currently faces taxes and duties ranging from 26.9 percent for solar panels and inverters to over 58 percent for mounting structures, DC cables and solar power walkways.
This raises the cost of renewable energy systems by an average of 37 percent, creating a major barrier for households, farmers and small businesses seeking to invest in solar power, it said.
Presenting the keynote paper, CLEAN networking adviser Monowar Mostafa said Bangladesh remains heavily dependent on imported fossil fuels, while the current revenue structure penalises clean energy technologies.
The groups called for reducing customs duties, VAT, advance income tax, advance tax, and regulatory duties on all renewable energy equipment to a combined symbolic 1 percent for the next 10 years.
Speakers said Bangladesh currently has only 1,679MW of installed renewable energy capacity, including hydropower, against an estimated potential of nearly 1,32,000MW.
They said the existing taxes bring little fiscal benefit.
While Bangladesh currently installs only about 300 megawatts of solar capacity annually, the government earns around Tk 333 crore a year from taxes on solar equipment, they said.
This is less than 0.05 percent of the government’s projected revenue collection target for FY2026-27, they added.
Speakers proposed launching a Tk 25,000 crore revolving fund under Bangladesh Bank for renewable energy project financing.
Under the proposal, commercial banks would lend to local entrepreneurs at below 5 percent interest rates.
They also demanded direct subsidies of at least Tk 25,000 per kilowatt for residential rooftop solar systems and additional support for projects led by women and indigenous communities.
CLEAN Chief Executive Hasan Mehedi said continued dependence on imported fossil fuels would expose the economy to higher energy costs and external shocks.
“Renewable energy must be prioritised in the upcoming budget through tax reform, financial incentives and strategic policy support,” he added.
Cut renewable energy equipment taxes to 1%