The Power Cell has recommended the ministry to collect the money that the consumers were supposed to spend on installing solar panels as a pre-condition of getting new electricity connection.
According to the recommendation, the money has to be deposited to the Sustainable and Renewable Energy Development Authority (Sreda), which would later use the funds to carry out renewable energy-based projects for the deprived people at off-grid areas.
On January 21, the Real Estate and Housing Association of Bangladesh (REHAB) urged the State Minister for Power, Energy and Mineral Resources Nasrul Hamid to scrap the solar panel installing requirement for new connections to households.
Later, the ministry asked the Power Cell, which was formed under the power ministry to implement power sector reforms, for its recommendations over the proposal.
“The power ministry should hold meeting with its stakeholders including the REHAB to make the final decision over the issue.” Power Cell Director General Mohammad Hossain told the Dhaka tribune.
Commenting on the new recommendation by the Power Cell, REHAB General Secretary M Wahiduzzaman said: “This is not reasonable. The solar system has to be fully withdrawn. This recommendation does not reduce expenses.”
In its recommendation, the power cell said the requirement to install solar panels did not work out and had created chances of corruption.
The recommendation however added that to minimise dependency on fossil fuel for power generation and to increase use of renewable energy, the ministry should not fully scrap the previous decision made on November 7, 2010; instead they should collect money from the consumers that was supposed to be spent on installing solar panels as a pre-condition of getting new connection.
According to the Power Division, installation of solar panels is not required for new domestic connections consuming up to 2kW of electricity, but connections exceeding that range requires installing solar panels producing 3% electricity of the demand.
According to present market price, the solar panel cost would be fixed at Tk150 per watt and that money would be deposited to the Sreda fund, which would be managed by a technical committee.
Earlier, State Minister Nasrul Hamid had said solar panels would not be encouraged in urban areas anymore; rather, its use would be encouraged in rural areas.
Since its formation in December 2012, Sreda has reportedly made little progress, despite its ambitious plans of producing 800MW of electricity sustainably by 2015. Bangladesh currently produces about 100MW from renewable sources.
Earlier in May 2011, the government resumed giving new connections to households after a halt of several months.