[Dhaka, Bangladesh | 28 June 2026]: Every megawatt (MWp) of solar power installed in Bangladesh now saves the country more than BDT 5 crore annually by reducing electricity generation costs and avoiding expensive fossil fuel imports, according to a new study released by the Coastal Livelihood and Environmental Action Network (CLEAN).
The report, "Sunlight to Savings: Environmental, Social and Economic Dividends of Solar Power in Bangladesh", finds that despite having only 722 MWp of grid-connected solar capacity, Bangladesh has already generated enormous economic, environmental, and public health benefits.
According to the study, solar power has generated 3,230 GWh of electricity over the past eight years while saving BDT 2,642 crore in electricity generation costs and BDT 5,313 crore in imported fuel costs, a combined economic benefit of nearly BDT 7,955 crore (approximately USD 694 million).
The report further reveals that every MWp of solar power:
Saves BDT 2 crore annually in electricity generation costs;
Avoids BDT 3.11 crore in annual fossil fuel imports;
Prevents around 980 tons of carbon emissions every year; and
Eliminates more than 25 tons of harmful air pollutants annually.
Over the last eight years, Bangladesh's existing solar power plants have prevented more than 2.25 million tons of carbon emissions and 48,403 tons of hazardous air pollutants, including sulfur oxides, nitrogen oxides, particulate matter, lead, cadmium, and other toxic metals linked to respiratory diseases, cardiovascular illnesses, and premature deaths.
The study also highlights that solar electricity has become significantly cheaper than heavy fuel oil (HFO)-based electricity. In 2024-25, the levelised cost of solar power stood at BDT 15.54 per unit, compared with BDT 27.36 per unit for HFO-fired generation, demonstrating that renewable energy is now the most economically competitive option for Bangladesh.
Hasan Mehedi, Chief Executive of CLEAN, said, "Solar power is no longer just an environmental solution, it is Bangladesh's strongest economic opportunity. Every new megawatt reduces fuel imports, lowers electricity generation costs, eases pressure on foreign currency reserves, and protects public health. Investing in solar is investing in Bangladesh's economic resilience."
Although Bangladesh has increased its grid-connected solar capacity from 3 MWp in 2017–18 to 722 MWp in 2024–25, the report finds that the country remains well behind many comparable economies in solar development. It attributes this gap to policy inconsistency, regulatory and bureaucratic hurdles, insufficient investment in enabling infrastructure, and the continued expansion of fossil fuel-based energy projects, which have constrained the pace of renewable energy growth.
To unlock solar's full potential, the report recommends establishing a legally binding target of generating at least 30% of electricity from renewable energy by 2030, re-purposing unused land acquired for coal and LNG projects to develop dedicated solar zones on non-agricultural public land to deploy at least 10,000 MW of solar power, modernising the national grid with battery storage, removing import duties on solar equipment, and immediately halting new coal and LNG power projects.
The publication was launched by CLEAN as part of its continuing efforts to promote evidence-based policies for Bangladesh's clean energy transition.
To Read: Sunlight to Savings
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