The government is nearly ready to withdraw the stipulation binding consumers to install solar panels for getting new connections above two kilowatts.
Instead, consumers, while applying for new connections, will have to deposit a certain amount of money to a government fund, which will be used to generate power from renewable sources for people outside the national grid.
According to a guideline that the government is contemplating, consumers will have to deposit Tk2,000 for each kilowatt above 2KW. On that count, anyone applying for a 4KW connection will have to pay Tk4,000 in total.
The existing solar panel rule made it mandatory for consumers to install permanent rooftop panels at their holdings for getting new connections. In current market prices, the minimum cost of setting up such a panel is Tk50,000.
The idea was to make sure that consumers generated at least 3% of their demand on their own from the renewable source before they are awarded fresh connections.
In that way, the government wanted to promote the use of renewable sources of energy and ease pressure on the traditional non-renewable sources.
“We held a meeting with the stakeholders including the Bangladesh Energy Regulatory Commission to make a final decision,” said Mohammad Hossain, director general of the government’s Power Cell.
“We will send a proposal to Prime Minister Sheikh Hasina [also the minister in-charge of the Power Ministry] for approval,” he said.
“After approval, the Power Division will issue a new order for taking applications for new electricity connections [against payment of the fees],” he added.
A few months ago, the Dhaka Tribune published a report, which elaborated various kinds of irregularities that consumers, a section of government employees and solar panel sellers had been resorting to.
Instead of installing power-generating permanent panels, many consumers set up rented panels on rooftops without laying the distribution lines.
These window dressing panels, rented for small durations, were used to convince a section of government employees that they had actually installed the panels.
A section of those government inspectors, upon payment of bribes, allegedly awarded clearance to these consumers.
Many solar panel traders have also been doing healthy business by renting out solar panels for certain periods.
Considering these circumstances, the Power Cell recommended the ministry to collect the money that the consumers were supposed to spend on installing solar panels as a precondition for getting new connections.
The money has to be deposited to the Sustainable and Renewable Energy Development Authority (Sreda), which will use the fund to implement renewable energy-based projects for the deprived people living in the off-grid areas.
The “mini solar off grid” is said to be one such project to be undertaken in various places. One such project could be used for lighting up one or two villages at a time.
On January 21, the Real Estate and Housing Association of Bangladesh (REHAB) urged State Minister for Power, Energy and Mineral Resources Nasrul Hamid to scrap the solar panel installation requirement.
REHAB leaders claimed that the regulation had complicated things for their businesses because none of the owners were interested in bearing the financial burden of setting up solar panels.
Nasrul also hinted before that the government might scrap the rule. Although never on record to media, the junior minister had admitted in official meetings that the solar panel regulation did not work out.
Since its formation in December 2012, Sreda has reportedly made little progress, despite its ambitious plans for producing 800MW of electricity sustainably by 2015.
According to sources, reasons for Sreda’s slow kick start were delay in finalising the organogram and a lack of interest from the ministry side.
Bangladesh currently produces about 100MW from renewable sources.