Experts have stressed the need for policy reforms, reduced taxes and tariffs, and easier financing to bring dynamism to Bangladesh's renewable energy sector.
According to them, Pakistan's recent "solar revolution" can be an important learning ground for Bangladesh, particularly in expanding rooftop solar and distributed power generation.
The Centre for Policy Dialogue (CPD) organized a dialogue titled "Solar Revolution in Pakistan: Lessons for Bangladesh from a National Budget Perspective" at a hotel in Dhaka on Tuesday.
Speakers at the dialogue said Bangladesh has already made the political decision to move towards renewable energy, which is positive, but structural challenges remain in implementation.
CPD Research Director Dr Khondaker Golam Moazzem said the widespread adoption of solar power in a short span of time has changed the landscape of Pakistan's power sector. Bangladesh, too, can reduce its dependence on fossil fuels and make more effective use of renewable energy.
He said this year's budget includes some tax and revenue benefits for the renewable energy, electric vehicle (EV), and battery industries. However, he noted there is scope to further increase the use of renewable energy in the agriculture sector.
He further said progress on the National Rooftop Solar Program is important, under which a target has been set to generate around 3,300 megawatts of electricity using the rooftops of government institutions.
In a paper titled "Solar Rush" presented at the dialogue, Mohammad Basit Ghauri said Bangladesh is at a crucial stage of solar power transition. However, high taxes, financing constraints, and policy complexities are hindering progress in this sector.
He said solar panel imports in Pakistan reached 17.9 gigawatts in fiscal year 2025, exceeding the country's grid capacity. Currently, around 28 to 38 gigawatts of solar power has been installed in the country, a large portion of which is through distributed systems.
According to him, high electricity prices and lack of trust in the grid system are the main reasons behind the rapid expansion of solar power in Pakistan. Additionally, falling solar panel prices due to increased production in China have created a "solar rush" in the sector.
He further said about 7.3 million households in Pakistan had connected to solar power systems by 2025, most of them in rural areas. He noted that solar power has significantly reduced carbon emissions and saved import costs.
Another research paper presented at the dialogue said Bangladesh's Solar Home System was once one of the largest off-grid programs in the world, bringing more than 20 million people under electricity coverage. However, the pace of this programme has slowed in recent times, and many systems have become non-functional.
The research said the number of net-metering-based rooftop solar installations in the country is currently limited but gradually increasing. However, high taxes, complications in net metering approvals, financing shortfalls, and lack of institutional coordination remain major obstacles for the sector.
In his speech as the chief guest, the Chief Whip of the National Parliament, Md Nurul Islam Moni, said the government has given tax benefits to the renewable energy sector and has taken initiatives to expand the use of solar power in various sectors, including irrigation pumps.
According to experts, if proper policy support and an investment-friendly environment can be ensured, Bangladesh can also move towards a rapid solar transition like Pakistan.
