Rooftop solar power can ease energy crisis, create jobs

Amid rising fossil fuel prices and volatility in global energy markets due to the Middle East conflict, household rooftop solar power can help ease Bangladesh’s energy crisis, create jobs and contribute to the economy, policymakers and energy experts said on Saturday.

Welcoming government initiatives to promote rooftop solar power, they called for battery storage, simplified net-metering procedures, quality control of imported solar equipment, technical training, comprehensive monitoring and concessional loans for households to accelerate the sector’s expansion.

They made the proposals at a national dialogue titled ‘Potential of Household Rooftop Solar Energy: Challenges and Way Forward’ at the Bangladesh Institute of International and Strategic Studies auditorium in Dhaka.

New Age and the Coastal Livelihood and Environmental Action Network jointly organized the dialogue.  New Age Chief of Correspondents Emran Hossain moderated the session.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said Bangladesh had significant untapped potential for household rooftop solar power, which could reduce dependence on costly imported fuels and create business opportunities for young people.

‘Rooftop solar energy is not rocket science. It can create a lot of employment,’ the minister said.

He said the government was promoting rooftop solar power to ease the pressure of rising fuel import costs and subsidies, and was considering tax cuts for buildings equipped with solar systems.

Government-to-government fuel supply contracts have been declared force majeure (circumstances beyond contractual control) amid the Iran-Israel war, forcing Bangladesh to buy liquefied natural gas from the spot market, where prices have risen from $10-13 to $32 per unit, he said.

Rising fuel costs have put enormous pressure on the economy, with the government spending Tk 14,900 crore on fuel subsidies, the energy minister added.

While presenting the keynote paper, CLEAN Chief Executive Hasan Mehedi said the residential sector accounted for the largest share of Bangladesh’s electricity consumption, making rooftop solar power crucial to easing pressure on the national power grid.

He called for a Tk 25,000 crore revolving fund to accelerate rooftop solar expansion, saying the existing fund of around Tk 150 crore was inadequate.

Mehedi stressed the need to train young people in solar panel installation, maintenance and servicing. Domestic companies faced a shortage of skilled workers and often had to bring in technicians from China and India, he said.

Installing rooftop solar systems in one million households could create one million jobs, he said, adding that each kilowatt of installed capacity could save Tk 29,600–Tk 31,300 annually in furnace oil imports and reduce carbon emissions by around 1.4 tonnes.

New Age Editor and Editors’ Council President Nurul Kabir said the conflict in the Middle East had triggered a fresh energy crisis, with its adverse effects extending beyond Bangladesh to countries around the world.

‘At a time when the energy crisis is causing concern among policymakers, industries, businesses and ordinary people, we need an informed position on which policies should be adopted and which should be avoided,’ he said.

Knowledge Hub Institute President Khondaker Golam Moazzem said decentralised solar power should be expanded to help households generate and consume their own electricity, reducing their dependence on the national grid.

He called for a separate residential rooftop solar programme and suggested developing area-based mini-grids to make investments commercially viable.

Moazzem proposed bringing solar panels installed under building code requirements within the net-metering framework, arguing that many such systems remained unused.

Infrastructure Development Company Limited Vice-President Imrul Hasan said the organisation aimed to install 1,000MW of rooftop solar capacity within six months, with 500MW each on residential and industrial rooftops.

He said households accounted for 56 per cent of the country’s electricity demand, which was growing by around 8 per cent annually, creating significant scope for residential rooftop solar.

Households could earn money by selling surplus electricity to the grid while saving on power bills by consuming the electricity they generated, he said.

Installing 500MW of household rooftop solar capacity could generate around 575 million units of electricity annually and save up to $133 million in fuel imports, according to his estimates.

Bangladesh Sustainable and Renewable Energy Association President Mostafa Al Mahmud said the government should maintain tax incentives for the solar sector to encourage investment and installation.

He also emphasised the need for easier access to finance and a stable policy environment, saying the time required to import and install solar equipment remained a challenge to capacity expansion.

Professor Scott Hamilton of Monash University said Australia’s experience showed that household solar power could be expanded rapidly with appropriate policies, financing and quality control.

He urged Bangladesh to ensure that solar panels, inverters and batteries were of good quality and properly installed, warning that faulty equipment and poor installation could undermine the programme.

Hamilton also highlighted the importance of battery storage alongside rooftop solar power to manage fluctuations in electricity supply.

Bright Green Foundation Chairman Dipal Chandra Barua called on the government to consolidate its renewable energy policies, circulars and directives into a comprehensive Renewable Energy Act.

He proposed using the country’s network of around 10,000 bank branches to provide renewable energy loans of up to Tk 5 lakh, particularly to rural households. Barua also urged the government to temporarily waive VAT and taxes on solar installation services for six months to one year to reduce costs for consumers.

Rancon Infrastructure and Engineering Limited Chief Operating Officer Subail Bin Alam warned that the rush to install rooftop solar systems could create technical and safety problems if buildings were not properly assessed.

Many old buildings and structures with tin roofs might not be suitable for solar installations without proper technical evaluation, he said.

He also raised concerns about the import of refurbished and relabelled panels, saying the government needed to ensure that equipment met quality standards and that manufacturers’ warranties were honored.

Transparency International Bangladesh Energy Coordinator Newazul Maula questioned which national energy and power master plan the government was currently following, saying clarity was needed to ensure consistency in investment and policy decisions.

He urged the government to observe the United Nations-declared International Day of Clean Energy on January 26 to raise public awareness of renewable energy.

Shamim Hayder Talukder, chief executive of Eminence, a public health research organization, suggested using hospitals and healthcare facilities as demonstration sites for rooftop solar power and battery storage.

Reliable electricity was essential for healthcare services, particularly in remote and underserved areas, he said, adding that solar systems could help hospitals maintain services during power disruptions.

The speakers also stressed the need for public awareness, technical training, quality assurance, and regular monitoring to ensure that rooftop solar installations remained functional and delivered the expected benefits.

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